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Arizona Tax Credit: What is PTSO?

by | May 26, 2022 | Blog, Qualified Charitable Organization, Tax Credits

Arizona tax credit

Nowadays, non-profit charity organizations are reaching out more to provide basic assistance to the neediest individuals. Their missions are to give hope to people who are suffering because of the circumstances where they are in. The government helps charities by allowing taxpayers to use your Arizona tax credit as donations to make their goals sustainable.

Tax benefits for donation are the money you can reduce from your tax liability, incentivizing your act of giving gifts to charities. With this support, there are a lot of not-for-profit organizations that emerged over the years. One of which is the Parent Teacher Student Organization (PTSO). Let’s know more about this as we go along with our discussion.

Understanding More About The Arizona Tax Credit

Firstly, it is vital to understand more how the tax credit works. As mentioned earlier, tax credits or tax benefits for donation are given to offset the cost you incur for sharing what you have with qualified non-profit charity organizations. Individuals and business owners have the eligibility to receive such incentives. The state of Arizona provided a maximum and minimum credit when applying for tax benefits for donation to prevent ill-uses of tax credits. Respectively, the state allows a combination of tax credits apart from the tax benefits for donation, which you can also carry forward up to five years.

Reaching Out More With Tax Benefits for Donation

Arizona tax credit

According to a blog, the state believes that non-profits can provide greater public good than doing it on their own. That’s why they incentivize individuals who extend their resources to charities and, at the same time, provide subsidies to non-profit charity organizations. However, it is important to note that they also determine the charities’ missions. Without the government’s certification, tax benefits for donation are not eligible when giving gifts to organizations.

Aside from the tax benefit for donation, it is essential to realize that what should matter most to everyone is impacting communities through their intentions to help. With the emerging non-for-profit groups, you can choose which advocacy you can get involved in. Interestingly, most charities in Arizona support children. They may be part of the most vulnerable sector of society, but the majority of the non-profits believe that they are the future. Some children encounter different types of challenging circumstances such as homeless, lack of access to education, chronic illnesses, suffering from physical disabilities, and being financially incapable. But with the programs of charities, great opportunities lie ahead of them.

Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations

There are two tax credits for donations in Arizona, namely, Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations. According to the blog of Give Local Keep Local, Qualified charitable organizations in Arizona pertain to charities that help a group of individuals who are either low-income earners, children with chronic illness, or families who need immediate basic needs. They must allocate at least 50% of their annual budget to the qualified individuals who are granted immediate basic social services.

On the other hand, Qualifying Foster Care Charitable Organizations are non-profit charity organizations that spend at least 50% of their annual budget on improving the quality of lives of children who were placed in foster care.

What is PTSO?


Arizona tax credit

Aside from the donors and non-profit charities, teachers and students are vital in children’s growth and development. Parent-Teacher-Student Organization (PTSO) is created to support schools and children’s welfare through fundraising and community-building events. It is an avenue for parents to get involved in their children’s journey in school.

In PTSO, most activities are for teachers, parents, students, and staff to bond for values enrichment, which is essential in making a livable community. These activities are camping, tree planting, outreach programs, and more.

Why is PTSO important?

Nowadays, PTSO continues to gain popularity in public and private schools since they harness the power of volunteerism.  The following are the reasons why PTSO is important:

  • It financially helps schools in facilitating character-building activities for students.

The common goal of PTSO is to help to provide facilities for a better environment for students to learn. Thus, teachers and parents conduct fundraising activities to make this possible. Moreover, PTSO conducts fundraising to also support students’ extra-curricular activities.

Interestingly, when PTSO conducts fundraising to help schools eligible for tax benefits for donation, volunteers not only impact helping the students but also save them from tax liability.

  • It improves the communication of the stakeholders (children, parents, teachers, and school employees).

Another good thing about PTSO is that it brings transparency among the stakeholders. Parents are well updated with the current activities in schools. Nowadays, with the advancement brought by technologies, some schools have newsletters sponsored by PTSO, which help to inform students and parents about the latest happenings and outlook of the school.

Further, PTSO enhances the relationship between parents and teachers, wherein they know how to guide children at school and home. Teachers can listen to parents on what they want for their children. It also gives opportunities for teachers to discuss the academic performance of students.

  • It boosts children’s well-being.

PTSO’s main goal is to invest in character-building activities to hone children’s well-being. Most of the conducted activities of PTSO enable students to experience character-enriching events such as camping, tree planting, outreach program, and more. These experiences can contribute to making them better individuals as they grow up. With outreach programs, students can realize that sharing small things can positively impact the lives of the people who are in need. Interestingly, PTSO-conducted activities will hone students skills. Camping, for one, can provide leadership and resilience training  to most children.

There are a lot of ways to extend your blessing to other people. In Arizona, people who help receive tax benefits for donations. Aside from various tax credits, you can also help children through PTSO’s initiatives. Like other children’s organizations, PTSO advocates improving children’s learning environment to equip them with the proper demeanor and skills. To learn more about helping kids, you can call 480 795 3775. You can also send us an email through support@childrencareaz.org.

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