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Nonprofit Law/mileage reimbursement


We are required to us our personal cars at my job at a local nonprofit.  We routinely see clients in their homes, and drive throughout a large county.  We are being reimbursed much less than the IRS rate.  Is this legal?  Is it a common practice among nonprofits?

2802 of Labor Code of California has:
---Start of Excerpt--
(a) An employer shall indemnify his or her employee for all
necessary expenditures or losses incurred by the employee in direct
consequence of the discharge of his or her duties, or of his or her
obedience to the directions of the employer, even though unlawful,
unless the employee, at the time of obeying the directions,
believed them to be unlawful.
---End of Excerpt--

Labor Code 3352
---End of Excerpt--
"Employee" excludes the following:
 (i) Any person performing voluntary service for a public agency
or a private, nonprofit organization who receives no remuneration
for the services other than meals, transportation, lodging, or
reimbursement for incidental expenses.
---End of Excerpt--

The IRS rate is not required, but the expenditures and losses are covered and that would be close to the IRS rate.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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