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Why AZ Tax Credit Is Important To Non-Profit Charity Organizations

by | Apr 3, 2022 | Blog, Qualified Charitable Organization, Tax Credits

AZ tax credit


AZ tax credit is becoming more popular every year. Do you know why? Because it gives taxpayers the freedom to distribute their dollars to non-profit charity organizations that matter to them. Plus, these unique tax credits provide opportunities for taxpayers to receive dollar-to-dollar deductions from their tax liability. How interesting isn’t it?

For many, receiving tax benefits for donating to non-profit charity organizations is an efficient and great way to allocate their taxes. There is nothing more fulfilling than witnessing your money improve the lives of those in need. But how did the state of Arizona come up with this AZ tax credit program?


The History of Arizona Tax Credit

In 1998, the Working Poor Tax Credit, which is presently known as Arizona Tax Charitable Credit, was created to help individuals who need help. In 2012, the government strengthened the program, making donations and taxations more efficient in benefiting taxpayers and charities. They expanded to certify non-profit charity organizations that are part of the most vulnerable sector of society, including children with chronic illnesses, disabilities, and low-income individuals. Today, individuals have options to which type of tax credits for donations they prefer, whether a qualifying charitable organization or qualifying foster care charitable organizations.


The Difference Between A Qualifying Charitable Organization and Qualifying Foster Care Charitable Organization

Suppose you plan to avail of a tax credit for donations in Arizona. In that case, it is vital to know the difference between the two non-profit charity organizations, namely, Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations.

According to the blog of a qualified charitable organization in Arizona pertains 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.

These types of non-profit charity organizations need support from individuals to sustain their missions in nurturing the most vulnerable individuals in society, especially children. With the pressing situations brought by COVID-19, today is the right time to offer a hand to these organizations. Learn more about helping children through your AZ tax credit; call us today at 480 795 3775.


The Importance of Your AZ Tax Credit to Non-profit Charity Organizations

Arizona tax credit


Little do you know that donations and taxations work hand-in-hand to radiate altruistic relationships among individuals. With Arizona tax credits for gifts, citizens are encouraged to become more responsible by donating a portion of their earnings. Consequently, the government incentivizes individuals by reducing the amount they owe to the state.

Tax credits have various impacts, most especially on non-profit organizations. Let us learn how tax credits for donations help charities in Arizona.

Charities can leverage the money to sustain their mission.

AZ tax credit


Regardless of which qualified non-profit organizations you choose to help, the paramount importance of tax credit is to give additional funds for charities to sustain their missions. As a non-profit organization, purchasing children’s basic needs in foster care requires a significant amount of money to maintain. Thanks to AZ tax credit for the financial assistance. It can genuinely help build a promising future for foster kids, children with chronic illnesses, and low-income families.

Moreover, charities vary on what type of goods they purchase for the kids depending on your donation. For example, in Ohana, the amount of donation has a specific item for a child. Daunting $25 gives a child weekly transportation.

AZ tax credit for donations complement state funding programs.

Apart from sustaining its mission, tax donations are utilized to complement state funding programs. For one, a donation can help children whose parents can’t afford their tuition. It aids the state in giving scholarships to children who need financial assistance for their education.

It contributes to the greater good of society.

Contributing to a cause has a promising impact on creating a more congruent society. After quite some time of donating, you may not notice that you have already supported children who finished their education. And you will never know these kids obtain talents that can improve the way we live. That’s why never underestimate the power of giving.

What You Need to Know About Arizona Tax Credits

There are more things you should learn about Arizona tax credit. The maximum available credit that single taxpayers, heads of household filers, married filing separately filers can claim for a charitable contribution to Qualifying Charitable Organizations is $400 and $800 for married taxpayers filing jointly.

az tax credit

Taxpayers who contributed to Qualifying Foster Care Organizations have a maximum available credit of $500 for single taxpayers, heads of household filers, married filing separately, and $1000 for married filing jointly.

Secondly, there are plenty of Arizona tax credits aside from Arizona Charitable Donation Tax Credit. Plus, taxpayers can combine these tax credits to lower their state taxes.

Further, individuals can carry over donations to QCOs and QFCOs that were not used in the most recent taxable year for up to five years under the AZ tax credit. However, you cannot carry forward any amount that was donated beyond the maximum allowable limit as a credit in a given year.

As you have noticed with the criteria created by Arizona’s government regarding your AZ tax credit for donations, you can say that an altruistic approach can make things genuinely better. No wonder this becomes popular every year.

Now that you are equipped with the significance of donations and taxations to the community, you are ready to help non-profit organizations get the tax credit you deserve. It does not need to have grand gestures to impact society significantly. Most of the time, it begins with small steps.

When looking for a group you want to help, get involved with Children’s Care Arizona programs. You can dial 480 795 3775, and let us discuss ways you can fulfill the dreams of the young generations.

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