You may not realize it, but you have the power to change the life of a child in foster care – and you can do it with just a few clicks or a simple phone call. And thanks to the Arizona Foster Care Tax Credit, making a difference is more possible than ever.
What is the Arizona Foster Care Tax Credit?
The Arizona Foster Care Tax Credit reduces your annual state income tax obligation, matching qualifying donations dollar-for-dollar up to a certain threshold. Only contributions made to qualifying foster care charitable organizations, such as the Arizona Friends of Foster Children Foundation (AFFCF), are eligible.
Individuals can claim a total tax credit of up to $500, while couples filing jointly can claim a maximum of $1,000. The credit can be claimed annually, once per Arizona personal income tax return.
Essentially, this Arizona tax credit was implemented to encourage charitable donations and make a financial contribution accessible across a broader range of budgets.
How to Use Your Charitable Donation
If you want to make a charitable contribution that qualifies for the best AZ tax credit, your first step is to select a qualifying organization. You can find a full list of qualifying organizations via the Arizona Department of Revenue.
AFFCF is certified as one of the state’s Qualifying Foster Care Charitable Organizations (QFCOs), meaning that we meet the following requirements and others:
- Fulfill an immediate community need, specifically serving Arizonians living in poverty
- Spend a minimum of 50% of the organizational operating budget on providing the above services
When you donate to the Arizona Friends of Foster Children Foundation, you can be confident that your contribution goes directly toward meeting the needs of children within the state’s foster care system. In fact, we put 88% of every donation straight into our programs and services, with the remaining 12% covering fundraising and administration.
In addition to supporting AFFCF efforts to provide for core childhood experiences and necessities for children in foster care, your donation may also be used for one of our foundation’s core programs:
The AFFCF Post-Secondary Scholarship
Young men and women in foster care rarely have the financial means for post-secondary education, but the AFFCF Post-Secondary Scholarship provides aid for both four-year college and community college students. Our goal is to open the door for education, and in turn, a brighter future and freedom from the cycle of poverty, crime and addiction that so many of these young people endure.
The Bobby Ed Penson Fund
Many of us have experienced financial setbacks at one point or another. But for young adults who have recently exited the foster care system, something as simple as car trouble can derail their entire future. The Bobby Ed Penson Fund provides financial assistance to students facing unexpected expenses, offering the support they need to continue pursuing their educational goals.
Keys to Success
When a child in foster care reaches the age of 18, they can voluntarily choose to remain in foster care until they reach 21 years, or they “age out” of the system and find themselves facing the world alone. Our Keys to Success program aims to empower teens and young adults from foster care with the career planning, skill-building, and community resources they need to become successful, happy and productive members of the community.
How Do I Claim My Credit on My AZ Tax Return?
The simplest way to learn how to get the best tax credit on an Arizona tax return is to meet with an experienced tax professional. Because every situation is unique, working with a tax professional can help you complete the filing process with ease.
In general, the steps to claim the AZ Foster Care Tax Credit are as follows:
- Donate to a Qualifying Foster Care Organization (QFCO), such as AFFCF.
- Save the receipt documenting your donation.
- When you file your state income tax return, you will submit a copy of the receipt. You will also need to provide specific details, such as AFFCF’s tax ID (#86-0468850) and our Qualifying Foster Care Organization ID (#10023).
- Note that itemizing is not required for claiming this tax credit.
Use Your AZ Foster Care Tax Credit to Help Children and Youth Across Arizona
Without the generosity and kindness of our donors, AFFCF would not be able to continue our mission to improve the lives of children in Arizona foster care. We truly appreciate every contribution, no matter the amount, because each one provides invaluable support for the children who need it most.
Donations can be made online or via phone (602.252.9445).
For more information about how to make a donation that qualifies for the best AZ tax credit dollar-for-dollar, contact AFFCF today.
Image Source: Elena Srubina / Shutterstock