How to contribute: three ways to donate to a charity in Arizona and change lives!

How to contribute: three ways to donate to a charity in Arizona and change lives!

Giving often feels great! It is a way to state how important is someone—or something—to ourselves. We learn about this since we are children, usually through gifts and sharing. Giving to charities, as adults, allows us to voice what matters to us. 

If your community matters and if you want to enjoy potential benefits from contributing, keep reading to learn how to donate to fund education for less-favored children in Arizona. 

For longer than two decades, Arizona’s CTSO has contributed to helping more than 90,000 students from low-income families thanks to your contribution! 

In these times, giving has become a privilege amidst the struggling situation in the world. However, it is important to remember that we might be “richer” than many other people for what we have. 

Being a responsible citizen, filing our taxes and keeping our finances tidy can bring not only advantages for you but also a big satisfaction! Here are three ways to donate and change lives. 

Arizona’s Individual Tax Credit

Since 1998, it has been possible to access an education tax credit in Arizona. This mechanism aims to encourage individuals and marriages to contribute to a charity of their choice.

Taxpayers then benefit from a dollar-for-dollar tax credit based on their liability. This means you will receive a credit for the same amount you donated. 

To apply for this type of credit, you must find a certified private school tuition organization that meets different criteria, such as allocating at least 90% of its revenue to scholarships and tuition grants. 

Then you fill out forms provided online by the Arizona Department of Revenue, you will be assessed and there you go. Attention! There are limits.

The 2023 tax season limits to this credit are $1,307 for single filings and $2,609 for married couples’ applications. This does not mean you cannot donate more. In that case, you could transfer a part for the next season.

In case you want to learn more about this: Tax Credit 2023 Guide: all you need to know, just a click away!

Corporate Tuition Tax Credits

Corporations can access education tax credits through charity donations. They can apply for either a credit that supports scholarships for low-income families, or another that concerns displaced students or students with disabilities. 

Two main benefits await corporations: they receive a 100% tax credit for every dollar they contribute, and this is a no-cost process since it is money you already have to pay to the State of Arizona. 

Remember the deadlines! The deadline for tax year 2023 is April 15, 2024. Talk to your financial advisor to find out if you can apply for an extension.

You must know that ​​both the low-income corporate tax credits and the disabled/displaced corporate tax credits need to be pre-approved by the Arizona Department of Revenue.

Participating corporations include any “C” corporation with tax liability in Arizona and LLCs taxed as “S” corporations. The “S” corporations can donate and then pass a pro-rate share to their stockholders. 

 Learn more about the corporation tax credits to see if it suits your company! Year by year, more businesses support our mission.

Corporate Matching Gift Programs

Another great way to contribute is via matching gifts. Some employers match charitable donations made by their employees and their spouses, or even retirees. 

If you want to learn about this option, get in touch with your Human Resources department to inquire about its availability. 

When an employer matches the contribution, it usually doubles the donation! There are cases where employers choose to triple the contribution. 

After you receive the confirmation, fill out the corresponding forms and send them to Arizona’s CTSO, for more information on where to address it, click here. 

This is how charitable organizations have helped school dropouts decrease, little by little, we are going towards education access equality. 

Our impact through your donations

Thanks to our donors and thousands of contributions, we are proud to keep on with our mission: providing tuition assistance to K-12 students in Catholic schools. 

Lives are changed when the children of a low-income family receive a scholarship to attend a private school. In the end, better education translates into better future opportunities. 

The Common Sense Institute estimates that over 200,000 taxpayers in Arizona (between 5% and 7% of the total) apply for charitable tax credits, which means around $109 million per year to charities (1). 

We are aware that helping might be difficult for more families. Data proves it: Arizona has experienced a 20% decrease in charitable giving since a 2021 record high (2). 

Nevertheless, nothing can compare to the joy of tens of thousands of children knowing they are provided with better tools to face their future. Giving is a precious act! And by doing so, you get a civil benefit. 

Charity has always made ourselves useful to people who have it harder than us. In that sense, giving to our neighbors fulfills our Catholic values and beliefs. We should give freely, with no pressure, for “God loves a cheerful giver” (2 Corinthians 9:7). 

We hope for a better world and societies governed by morals and compassion. In Arizona’s CTSO, we believe that helping children get an education matters. Please contact us for more information or use our brochure request service. 

References

  1. Kamryn Brunner. “Give and Your Economy Shall Receive: Economic Growth from Arizona’s Charitable Tax Credit.” Common Sense Institute Arizona, November 2, 2023. Retrieval date: April 11, 2024.
  2. Kristen Wilson. “Charitable donations have plunged in recent years. You can help change that.” AZ Central, March 16, 2024. Retrieval date: April 11, 2024.
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© 2021 Catholic Tuition Support Organization, Tucson, Arizona.

Arizona Catholic Tuition Support Organization (CTSO) is an IRS 501 (c) (3) nonprofit organization, and is a qualified tax credit organization under the State of Arizona.