“Tax credit contributions help us support Legacy Connection’s Backpack Buddies program,” he said. “This is a program that provides back-to- school supplies and clothing that Title I children need when they return to school, enhancing their confidence and ability to focus on education. One in four students in this state lives in poverty. Thanks to tax credit donations, we can make a powerful difference in the lives of Arizona families.” Additionally, Petty said the private school tax credits help students and families who might not otherwise be able to afford their tuition. “Because of the Private School Tax Credit program, financial ability to pay does not preclude children from attending the schools that best fit their needs,” she said. “As a result, private schools are more diverse, and children from all backgrounds are thriving and reaching their potential.” Blunt added that many people who received COVID stimulus payments from the federal government may not have needed the infusion of money, and it could be put to good use by Arizona charities. “The COVID-19 stimulus payments families received in 2021 are tax-free and came with no restrictions. So, those monies can still be used to make tax credit contributions,” she said. “While a lot of folks really needed those stimulus payments to help make up for lost or reduced wages or increased expenses related to the pandemic, there were many people who received the payments and did not really need them. credits. The Low-Income Tax Credit supports low-income students in private schools, and the Disabled/Displaced Tax Credit supports disabled students and students in (or who have been in) foster care. Because there are statewide caps for both credits ($135 million and $6 million, respectively), applications for approval are made by the Private School Tuition Organization to the Arizona Department of Revenue on behalf of the donor. Brenda Blunt, a partner at Eide Bailly LLP, said the corporate tax credits can benefit many people who own their own companies. “Readers who own one or more Arizona corporations can also benefit, either directly or indirectly, by contributions their businesses make to Private School Tuition Organizations,” she said. “For owners of S-Corporations (generally flow-through entities in which the owners, not the business, pay the tax), see Arizona Form 335-I and 341-I instructions. For owners of C-Corporations (generally taxable corporations), contact a qualifying Private School Tuition Organization for more information.” Some think it’s too good to be true, but it’s not. You can give to a qualified charity or tuition organization instead of giving it to the state government for taxes. Over time, these contributions have become increasingly popular for residents and beneficial for nonprofits. Gerald Wissink, CEO of BHHS Legacy Foundation, said tax credit contributions have a tremendous impact on specific programs, such as the foundation’s Legacy Connection initiatives, as well as the nonprofits the foundation supports. 10 FRONTDOORS MEDIA | TAX CREDIT GIVING GUIDE “This is your chance to invest in Arizona’s future. Thanks to the Arizona Charitable Tax Credit, you can decrease your Arizona tax bill — or increase your refund — by $400 or $800.”

“Giving that money to a tax credit-qualifying organization is a great tax-advantaged way to help the most vulnerable people in our community,” Blunt said. Wissink agreed that these contributions are an important way for Arizonans to support their favorite charitable causes, whether during difficult times or smooth sailing. “This is a chance for our community to invest in Arizona’s future,” he said. “Thanks to the Arizona Charitable Tax Credit, you can decrease your Arizona tax bill — or increase your refund — by $400 or $800. That means your gift ends up costing you nothing. It is a simple but powerful way to reach out and impact our community.” For a complete list of qualifying charitable organizations and qualifying foster care organizations, visit azdor.gov/ tax-credits/contributions-qcos-and-qfcos . Organizations are also added on an ongoing basis, so it may be worth your time to check back before year-end and again before April 15, 2022 — the last day 2021 tax credit contributions can be made. Umbrella Organizations Some charities under the Arizfona Qualified Charity Tax Credit have a slightly different designation as “umbrella organizations.” They are eligible for contributions of $400 per person and $800 per couple as well, but are listed differently on the state of Arizona’s website. For example, Executive Council Charities, Valley of the Sun United Way and other United Way organizations across the state are considered umbrella organizations because they may receive tax credit contributions and distribute them to other nonprofit partners in the community. TAX CREDIT GIVING GUIDE | FRONTDOORS MEDIA 11