Frequently Asked Questions

Q. Who is CCA?
A. Children’s Care Arizona is a 501C(3) non-profit organization as well as a Qualified Charitable Organization (QCO). This QCO status allows us to receive dollar-for-dollar tax credit donations to be used for scholarships to support low-income families with various childcare services (preschool tuition, before/after school care, extracurricular activities, summer camps, etc.). In addition to the low-income funds, a portion of the donations received are available to the organization in the form of grant funding. These funds may be used at the discretion of the organization.
Q. What is a QCO?
A. The Arizona Department of Revenue (ADOR) defines Qualifying Charitable Organizations (QCOs) as those that “provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability.” QCO organizations are also required to spend at least half of their annual budgets on “qualified services for qualified Arizona residents,” according to ADOR. Children’s Care Arizona supports low-income residents of Arizona.

Q. What is a tax credit dollar-for-dollar donation?
A. A tax credit reduces an individual’s tax liability (or the total amount of tax debt owed to the government) on a dollar-for-dollar basis, up to the maximum allowable amount. In the State of Arizona, residents can choose to redirect their state tax liability to 5 types of organizations: Public School Tax Credit (applies to public charter schools), Private School Tax Credit, Switcher Individual Income Tax Credit, Qualified Foster Care Organizations, and Qualified Charitable Organizations.
Q. What's the difference between a tax credit and a tax deduction?
A. A tax deduction reduces an individual’s taxable income. For every dollar an individual claims as a tax deduction, her taxable income is reduced by a dollar. Based on the calculation from her income bracket, the individual pays a tax on the amount left over after deductions are subtracted.

Q. What is the maximum I'm allowed to donate?
A. The maximum allowable credit for contributions to QCOs for single taxpayers, married (filing separately) filers, or heads of households is $400; for joint taxpayers, the maximum credit is $800.
Q. Is there a minimum amount I must donate?
A. No. Donors may contribute any amount their budget allows and still be claimed as a tax credit, thereby reducing their state tax liability.

Q. Can you make more than one tax credit donation?
A. YES! You can donate to as many different tax credit organizations, as long as the amount donated does not exceed your total state tax liability. For example, if you have a state tax liability of $1200 and you file married, you can donate $800 to Children’s Care Arizona as well as $400 through the Public School Tax Credit.

Q. What is the difference between grant funds and low-income scholarship funds?
A. Low-income scholarship funds are only available to families who qualify based on household size and income, and they must be the majority of funds provided in order to maintain our QCO status. However, a portion of the funds can be used as grant funds. These funds can be utilized at the organization’s discretion, such as, for families who do not qualify for low-income but need financial assistance, supplies for classrooms, equipment purchases, building repairs, field trip expenses and so much more.

Q. How do you qualify for the low-income scholarship funds?
A. State and Federal law require that for a household to qualify they must:
– be below the 150% Federal Poverty Level
– a resident of Arizona.
Q. What is a donation coordinator?
A. A donation coordinator is an employee of Children’s Care Arizona with the primary responsibility to support you in the process of promoting and raising funds for low-income families. This person will be your primary contact with any and all questions you may have about the program. Please be sure to maximize their role to ensure the most success.

Q. What is a donation volunteer?
A. A donation volunteer is a person within your organization that is willing to volunteer their time to support you in promoting and raising funds for low-income families. This person can be a parent volunteer or an employee that has the time and ability to support you.

Q. Who is eligible to receive scholarships?
A. Everyone is eligible to receive scholarships, however, in order to receive Low-Income funds, they must meet the low-income parameters. Therefore, it is recommended that all potential recipients complete the application to determine if they qualify for low-income funds and/or grant funds. Families who meet the low-income threshold, are eligible for both Low-Income Scholarships and Grant Funds. Families who do not meet the low-income threshold are only eligible for Grant Funds.

Q. How do families apply?
A. In order for a family to apply, the user must log into the dashboard and send them an application link through the Send Applications tab.