COVID-19 is creating new needs, while putting enormous financial pressure on all nonprofits. Our local nonprofit community is already reporting significant losses ($36 million and growing) in critical funding due to the cancellation of fundraising events and decreased staff/volunteer capacity amid recent COVID-19 health concerns. The demand for needed services from our nonprofits, however, is likely to increase.
In our ongoing efforts to educate and advocate, we will continue to offer information on various ways you can support your community during this time. In Arizona, April offers two prime times to give. Arizona Gives Day and the deadline for AZ Charitable Tax Credit.
Arizona Gives Day - Tuesday, April 7th
Arizona Gives helps people find, learn about and contribute to the causes they believe in while enabling nonprofits to share their stories and engage the community through a unique online giving platform. Arizona Gives Day helps raise awareness about Arizona nonprofits and the critical role they play in our communities and state. It inspires people to give generously to nonprofits making our state stronger, creating a thriving community for all.
Donors can help Arizona nonprofits who have had to cancel critical fundraising events and revenue-generating programming amid COVID-19 health concerns by supporting the Nonprofit Emergency Relief Fund (CUBEX Fundraising Page). With our help, the Emergency Relief Fund can bridge this gap by collecting critical funds that otherwise would not be possible.
Arizona Charitable Tax Credits - Deadline is April 15th
While the deadline to file taxes has been extended due to recent economic events, the AZ Charitable Tax Credit deadline remains April 15th for 2019 taxes.
Did you know that the state of Arizona provides a variety of individual tax credits, including the Arizona Charitable Tax Credit and the Public School Tax Credit. These tax credits allow taxpayers to make charitable contributions and receive dollar-for-dollar reductions in their Arizona state tax liabilities.
The Arizona Charitable Tax Credit gives taxpayers more choice in how their tax dollars are allocated. Consider the example of a single taxpayer who makes a $400 donation to an eligible Qualifying Charitable Organization, and a second $500 gift to a Qualifying Foster Care Charitable Organization. The taxpayer then claims the maximum allowable credit for these contributions (the $400 maximum tax credit for a QOC, and the $500 maximum credit for a QFCO), reducing her state tax liability, dollar-for-dollar.
This taxpayer has effectively redirected $900 of her State tax payment from the State’s general fund to the two charitable organizations of her choice. This is the underlying benefit of the Arizona Charitable Tax Credit – it shifts control away from the State and gives individuals the power to determine which deserving organizations will receive tax revenue. Taxpayers themselves can direct tax dollars to charities whose services they believe provide the most value to their local communities.
This program grows in popularity each year—and for good reason. The impact on the community continues to increase; between 2011 and 2016, twice the number of taxpayers in Arizona claimed the credit, awarding more than $34 million to qualifying charities.
To help navigate this, there is an ultimate guide to the Arizona Charitable Tax Credit in 2020 – a true “deep dive” into the details. Taxpayers will find everything they need to know in order to take advantage of this and other Arizona state tax credits. Consult with your tax adviser for advice on your specific tax situation.
