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State of Arizona
Department of Revenue
Setting the Standard for Tax Services
 

FAQ’s for Taxpayers - Credit For Contributions To A Qualifying Charitable Organization

For a list of Qualifying Charitable Organizations click here.

What is the tax credit for charitable organizations?

You may claim a tax credit for voluntary cash contributions you make during any taxable year to
a Qualifying Charitable Organization. A Qualifying Charitable Organization is a charity that is a
501(c)(3) or a community action agency that receives community services block grant program
monies that spends at least 50% of its budget on services to Arizona residents who either
receive temporary assistance for needy families (TANF) benefits, are low income residents
whose household income is less than 150% of the federal poverty level, or are chronically ill or
physically disabled children and shows that the charity plans to continue spending at least 50%
of its budget on services to those described above. A charity has to apply for and meet all
requirements of the law to be considered as a Qualifying Charitable Organization. Approved
charities’ names are listed on the Department of Revenue’s website.

 

How do I claim the credit for contributions to Qualifying Charitable Organizations?

The credit is available only to individuals. You report the name of the Qualifying Charitable
Organization you donated to as well as the dollar amount of your donation to the Department
of Revenue on Form 321.

How much can I claim for the credit for contributions to Qualifying Charitable Organizations?

Taxpayers filing as “single” and “head of household” status may claim a maximum credit of
$200. Taxpayers filing as “married filing separate” may claim a maximum credit of $200.
Taxpayers that file as “married filing joint” may claim a maximum credit of $400.

Do I have to itemize deductions to claim the credit for contributions to Qualifying Charitable Organizations?

No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for
contributions to a qualifying charitable organization. For 2012 and prior, you were required to
itemize deductions on your Arizona return in order to claim a credit for contributions to a
qualifying charitable organization.

Do I claim my charitable contribution as a tax credit or a deduction?

You may only claim a tax credit for your charitable contribution on your Arizona state return if the organization you donated to is considered a Qualifying Charitable Organization. A complete listing of Qualifying Charitable Organizations is published on the Department of Revenue’s website. Donations made to organizations not listed on the department’s published website are typically allowable as deductions. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.

How do I know which organization is eligible for my donation?

You can view the listing of Qualifying Charitable Organizations on the Department of Revenue’s
website at any time. You can also ask the charitable organization to show you a copy of the
Qualifying Charitable Organization certificate issued by the Department to the charitable
organization. You can also contact the Department to see if the charitable organization is a
Qualifying Charitable Organization.

Can I give to a Qualifying Charitable Organization through an umbrella‐type charitable organization?

Yes. You must designate that the donation is directed to a member Qualifying Charitable
Organization or member group fund that would qualify on a stand‐alone basis.

What is the tax credit for Qualifying Foster Care Charitable Organizations?

Recent legislation in 2013 allows you to claim a tax credit for voluntary cash contributions you
make during any taxable year to a Qualifying Foster Care Charitable Organization. To become a
Qualifying Foster Care Charitable Organization, an organization must first meet all requirements
to be a Qualifying Charitable Organization. In addition, a Qualifying Charitable Organization
must provide ongoing services to at least 200 foster children in Arizona and spend at least 50%
of its budget on ongoing services to foster children in Arizona to be considered as a Qualifying
Foster Care Charitable Organization. Approved Qualifying Foster Care Charitable Organizations’
names are listed on the Department of Revenue’s website.

How much can I claim for the credit for contributions to Qualifying Foster Care Charitable Organizations?

Taxpayers filing as “single” and “head of household” status may claim a maximum credit of
$400. Taxpayers filing as “married filing separate” may claim a maximum credit of $400.
Taxpayers that file as “married filing joint” may claim a maximum credit of $800.

Are there any examples of contributions to help clarify the difference between Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations ?

Yes. Here are several example scenarios for illustration purposes only:


Example 1:
A single taxpayer donates $350 to a QCO and $0 to a QFCO.
• Step 1 QCO credit : Of the $350 contribution, $200 is eligible for the credit. The excess
$150 is not eligible for the credit.
• Step 2 QFCO credit : None.
• Step 3: Total of QCO and QFCO credits: $200 tax credit for the 2013 tax year.


Example 2:
A single taxpayer donates $0 to a QCO and $350 to a QFCO.
• Step 1 QCO credit : None.
• Step 2 QFCO credit : Of the $350 contribution, $350 is eligible for the credit.
• Step 3: Total of QCO and QFCO credits: $350 tax credit for the 2013 tax year.


Example 3:
A single taxpayer donates $450 to a QCO and $300 to a QFCO.
• Step 1 QCO credit : Of the $450 contribution, $200 is eligible for the credit. The excess
$250 is not eligible for the credit.
• Step 2 QFCO credit : Of the $300 contribution, $200 is eligible for the credit. The excess
$100 is not eligible for the credit.
• Step 3: Total of QCO and QFCO credits: $400 tax credit for the 2013 tax year.


Example 4:
A single taxpayer donates $300 to a QCO and $75 to a QFCO.
• Step 1 QCO credit : Of the $300 contribution, $200 is eligible for the credit. The excess
$100 is not eligible for the credit.
• Step 2 QFCO credit : Of the $75 contribution, $75 is eligible for the credit.
• Step 3: Total of QCO and QFCO credits: $275 tax credit for the 2013 tax year.


Example 5:
A single taxpayer donates $150 to a QCO and $400 to a QFCO.
• Step 1 QCO credit : Of the $150 contribution, $150 is eligible for the credit.
• Step 2 QFCO credit : Of the $400 contribution, $250 is eligible for the credit. The excess
$150 is not eligible for the credit.
• Step 3: Total of QCO and QFCO credits: $400 tax credit for the 2013 tax year.

For a List of Qualifying Charitable Organizations click here
 

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