Savvy nonprofits know that a good strategy in fundraising is to remind potential donors about tax deductions for their donation. But did you know that your volunteers -- those that donate time rather than money -- may qualify for tax deductions as well? Your nonprofit should make it a regular habit to remind volunteers -- perhaps your board or advisory council members, other regular volunteers, or those who assist at special events -- that they can take tax deductions for certain expenses incurred during the course of their volunteer work.
Nonprofits have many good reasons for using volunteers. For example, volunteers can allow your organization to get more done for less money (sometimes substituting for paid staff), create community involvement, and increase your organization's visibility. But many nonprofits have trouble retaining a stable core of loyal volunteers. All too often, nonprofits spend long hours recruiting and training volunteers, only to have them leave after a few shifts. In order to reap the maximum benefit from using volunteers, you have to figure out ways to keep them coming for the long term.