FAQ’s for Charitable Organizations - Qualifying as a Charitable Organization For a list of Qualifying Charitable Organizations click here. What is a qualifying charitable organization? A qualifying charitable organization is a charitable organization that is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901. Further, the organization must spend at least fifty percent of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits or to Arizona resident low-income households or to chronically ill or physically disabled children who are Arizona residents. What kind of services must the qualifying charitable organization provide? Services is defined as cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state. Who are low income residents of this state? Low income residents are persons whose household income is less than one hundred fifty percent of the federal poverty level. Who are chronically ill or physically disabled resident children of this state? Chronically ill or physically disabled children means children who are under twenty-one years of age and whose primary diagnosis is a severe physical condition which may require ongoing, medical or surgical intervention. How does my organization become a qualifying charitable organization? A charitable organization must submit written certification on a prescribed application form to the Department of Revenue along with other information and documents. To view the form and detailed instructions, click here. The charitable organization must:1) be a charitable organization that is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901. 2) spend at least fifty percent of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits or to Arizona resident low-income households or to chronically ill or physically disabled children who are Arizona residents. “Services” means cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state. 3) provide financial data indicating the organization’s budget for the prior operating year and the amount of our budget spent on services to residents of Arizona who either receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona or are chronically ill or physically disabled children and 4) state that the organization plans to continue spending at least fifty percent of the budget in the future on services to residents of Arizona who receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona or are chronically ill or physically disabled children.The organization must also notify the Department of any changes that may affect its qualifications. The certification or change letters should be mailed to: Arizona Department of Revenue Office of Economic Research and Analysis 1600 W. Monroe Phoenix, AZ 85007 Will the department send us a certification if we are to be considered a Qualifying Charitable Organization? Yes, the department will send a qualifying charitable organization certificate to the charitable organization. My organization is already considered a Qualifying Charitable Organization. Do we have to recertify our status under the new law? Yes, all current qualified charitable organizations must recertify with the department under the criteria of the new law. Those who do not recertify will no longer qualify as a qualifying charitable organization and will be removed from the department’s published website list as of December 31, 2009. Will the department publish a list of Qualifying Charitable Organizations? Yes.

FAQ’s for Charitable Organizations - Qualifying as a Charitable Organization

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