Have A Say In Where Your Tax Dollars Go!
- February 7, 2022
- Posted by: Foundation
- Category: Newsletter
Flagstaff is home to many nonprofit organizations that are changing lives in our community every day. And these organizations need our support – our voice and our dollars – in order to continue to provide services and care those in our neighborhoods who are most in need. Thankfully, the state has made a way for Arizonans to direct their funds to the organization of their choice in place of paying state taxes.
The Arizona Charitable Tax Credit is a tax credit that allows taxpayers to donate to a “Qualifying Charitable Organization,” or QCO, and claim a dollar-for-dollar tax credit. Individuals may contribute up to $400 and those filing jointly up to $800. For example, if you owe $500 on your state taxes, and you contribute $400 to North Country HealthCare, your state taxes owed will now be only $100. It is a dollar-for-dollar tax credit very specific to the state of Arizona, so take advantage!
You can give one lump sum or split it over the course of the year. You have until April 15th, 2022 to contribute and decide where your tax dollars are spent.
What is a QCO?
A Qualifying Charitable Organization is a charity that is a 501(c)(3) or a community action agency 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 a QCO. You may claim a tax credit for voluntary cash contributions you make during any taxable year to a Qualifying Charitable Organization.
A current list of all approved charities in Arizona may be found on the Arizona Department of Revenue’s website.
Other ways to support your community
Another great thing about Arizona’s Charitable Tax Credit is that taxpayers can take advantage of both this credit AND the Public School Tax Credit. This tax credit is also a dollar-for-dollar credit where you can give up to $400 for married filing joint filers and $200 for individuals. For this tax credit, you can give to any Arizona public or charter school. The Arizona Department of Revenue has a complete list of schools to which you can give.
Flagstaff’s Tax Credit Coalition
North Country HealthCare is part of the Flagstaff Tax Credit Coalition, which is a group of local nonprofits who work together to raise awareness of this amazing opportunity available to Arizonans. The members of the Tax Credit Coalition are all QCOs who have a mission of providing direct services to individuals, families, and children in the region.
Participating organizations have seen a substantial increase in new, sustainable revenue through the unified, collective marketing efforts of the Flagstaff Tax Credit Coalition. Since the Coalition formed 8 years ago, members have seen contributions increase from $258,530 in 2013 to over $2.3 million in 2020! The unified marketing process of this collaboration maximizes our resources, enabling us to achieve greater results and serve more families in need. All of our locations benefit from our collaboration with the Coalition.
Talk to your tax preparer
To determine how your donation will specifically affect your tax return, talk to your tax preparer. On your Arizona State Tax Form 321, make sure to include our qualifying charity code, which is 20300. If you have questions about giving, email our fundraising and development team.
Remember, you have until April 15th, 2022 to make your contributions. You can donate online or mail checks to: North Country HealthCare, Attn: Development, P.O. Box 3630, Flagstaff AZ 86003. Your gift will give us the ability to care for more people throughout northern Arizona – thank you!
*This blog is for informational purposes only; North Country HealthCare and The North Country HealthCare Foundation do NOT provide tax advice.