D.6. Personal Services and Out-of-Pocket Expenses 
     January 1989

Development Policy and Administration Manual 
Chapter IV. Gift Administration Procedures 
Section D. Special Procedures for Various Types of 
           Noncash Gifts 
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PERSONAL SERVICES AND OUT-OF-POCKET EXPENSES


Unreimbursed out-of-pocket expenses incurred in performing
service for the University may be deductible, provided they are
directly connected with, and solely attributable to, the services
that were rendered to the University.  The deciding factor is
whether the donor or the University is the primary beneficiary of
the expenses.  For example, if an alumnus is volunteering to make
telephone calls to raise funds for a class gift, the calls are
deductible as a charitable expense if the alumnus confines the
conversation to the subject of the class gift.  If, however, he
telephones an alumna both to request a gift for the class fund
and to rekindle an old romance, the cost of the telephone call
would not be deductible.  

Examples of out-of-pocket expenses that are generally deductible
include:

     -    Travel and transportation costs, including tolls and
          parking fees, but not the cost of general maintenance
          or repair, depreciation, or insurance for the vehicle;

     -    Cost of meals and lodging, but only if traveling away
          from home as an authorized representative of the
          University;

     -    Expenses incurred by officers of charitable
          organizations in performing their official duties;

     -    Expenses incurred in attending conferences and other
          functions in an official delegate capacity.  Expenses
          are nondeductible, however, if they are for attending
          solely as a member of a charity.  


However, a donor may not deduct the value of the time spent in
performing services contributed to the University.  For example,
carpenters, lawyers, mechanics, artists, etc., may not deduct for
their own donated time.  

The fact that an act of generosity is not deductible does not
mean that it cannot be acknowledged.  However, care should be
taken not to create a paper trail that would appear to substan-
tiate a tax deduction.  For example, a letter of acknowledgment
should not refer to what was done as a "gift" or attribute a
value to it.  Contributions of services 
only are generally not reported as gifts for the same reason. 
Contributions of substantial out-of-pocket expenses may be
reported and valued based on invoices or similar documentation.