Impact AZ is a local grant initiative that provides training, coaching, marketing resources, access to experts in the non-profit industry, and a grant pool to selected non-profit organizations. The program is designed to help Christian, tax credit eligible, non-profit organizations become healthier, stronger, and financially sustainable by maximizing the use of the AZ State Tax Credit.
Groups will be able to receive grant awards in the following categories:
- Using the Public/Private AZ State Tax Credit Program organizations will be eligible for matching funds for tax credit gifts received during 2 targeted dates to push tax credit fundraising 1) Month of December 2) March 15th-April 15th
- Member organizations will have the opportunity to present proposals of needs in our community being met by partnership with another organization at a pitch event in February. Each proposal has the potential to receive a grant of $25K
The state of Arizona has a unique program that allows taxpayers to give a “tax credit” gift (up to $400 for an individual and $800 for a married couple*) to charities they’d like to support. This donation serves as dollar-for dollar credit applied to the taxpayers’ state tax liability. As an example:
- State taxes owed: $850
- Donation to an eligible charity: $800
- State taxes now owed: $50
Click HERE to see the complete on-line list of IRS-approved “Qualifying Charitable Organizations.”
*For Foster Care Charitable Organizations, the amounts are $500 and $1,000. Donors may give to BOTH a Charitable Organization AND a Foster Care Charitable Organization in the same tax year.
If my organization is accepted into Impact AZ, how do I direct our givers to make “tax credit” gifts?
- First, share the exciting news that your organization is “tax credit” eligible AND that your organization has been chosen to participate in Impact AZ!
- Next, invite your people to make a “tax credit” gift! Remember that your people can give up to $400 for an individual and $800 for a married couple, or $500 and $1,000 if you are a Foster Care Charitable Organization.
- Lastly, acknowledge and receipt the gift, as you always do.
That’s it! No other forms are necessary and there is no need to itemize. Your givers simply claim their gift (and credit) when they file their taxes.
Will the new U.S. Treasury tax regulations (if passed) affect the AZ Charitable Organization Tax Credit?
- Even if the regulation passes, the AZ Charitable Organization Tax Credit Program will remain in-tact and will continue to be an incredible giving opportunity for your people, with one main adjustment.
- This main adjustment is that state tax credit gifts made after August 27th (if the new regulation passes), cannot also be claimed as federal deductions. (This actually comes as no surprise; it was understood that the “double bonus” of the dollar-for-dollar state credit and the federal deduction would be adjusted at some point.)
- This does not change, in any way, the ability of your givers to give to your “tax credit” eligible organizations. Donations made after August 27th will still be considered as a dollar-for-dollar state income tax credit (even if the regulation passes). This would simply change how it will be reported on your givers’ federal tax return.
Impact AZ encourages you to continue to research and understand all details connected with this proposed change, AND to continue to encourage your people to make tax credit gifts!