Arizona has a variety of state tax credit programs, providing a direct offset to individual tax liability for donations made to worthy charitable organizations. Every Arizona taxpayer can make donations to qualifying charities and take a dollar-for-dollar credit against their 2021 income tax liability.
This means that you can support great causes right here in your community at NO COST TO YOU!
I can attest to the fact that the tax credit program has changed the landscape for charities. Services and programs have been created, and expanded thanks for this opportunity to fund organizations that serve the greatest needs in our community.
There are two charitable credits available. Married taxpayers can donate $800 per year to Qualifying Charitable Organizations (QFOs). The annual limit for singles is $400. These groups assist such vital social causes as homelessness, domestic violence, and food banks. This means that YOU can provide food, clothing and shelter to those in our community in need, and it will cost you NOTHING! Your donation reduces your state tax bill, so you receive the money back!
A parallel credit exists for donations to Qualifying Foster Care Charitable Organizations (QFCOs). This credit has annual limits of $1,000/$500. Dollars donated through the tax credit have supported basic needs for our state’s foster population, as well as aging out resources for teens who are of the age to be on their own, but don’t have the supports that are needed to live independently.
You can learn more about some of the many QCOs in the articles I have written on my blog page. Among them, Arizona Housing Inc. and Saving Amy are involved in moving community members into affordable housing. Arizona Cancer Foundation for Children, First Place Arizona, Teen Lifeline, Arizona Foundation for Women, Nourish PHX, Family Promise, Jacob’s Hope and Harvest Compassion Centers all fill vital roles in our community.
My history in assisting children in foster care has included working with all of the QFCOs. Some I have written about on my page are Arizona Foundation for Foster Children, Boost a Foster Family, Onward Hope and Arizona Sunshine Angels. Future stories will profile Thrive AZ and Generation Justice.
As the end of the calendar year approaches, I encourage everyone to take advantage of this unique way to make a difference. Arizona also provides tax credits to support public school education ($400/$200 limits) and private school tuition organizations ($2,435/$1,219 limits). You can contribute to all of the credits and utilize them to reduce or entirely eliminate your State tax liability. Would you rather use your tax dollars to support charities you care about, or give it to our state legislators to allocate? (Please consult your tax adviser for advice regarding your personal tax situation.)
There are a few tax credit umbrella organizations that make it easy to make your donations and pass 100% of your donations through to the charities. Three “one-stop” sites are hosted by Executive Council Charities, the CHARROS and Arizona Tuition Organization.
Check them out by visiting:
You have the power to assist the most vulnerable populations in our State. These tax credits make it painless for your pocketbook, but will provide invaluable resources to charities who do the hard work every day.
Dan Shufelt, the former CEO of Arizona Helping Hands, has been involved in the charity world as an executive and grant maker for many years.
If you enjoy learning of caring people and the amazing work they devote their energy to advance, be sure to sign up for Dan’s blog (see sign-up form below).