Discover Your Y. Discover Your Why.
SAVE ON YOUR ARIZONA TAXES
MAKE A GIFT TO THE YMCA TAX CREDIT FUND
The Credit for Donations made to Qualifying Charitable Organizations (QCO) plays a crucial role in supporting Arizona’s most vulnerable children and families. The YMCA Tax Credit Fund, LLC is a certified QCO, offering you the opportunity to provide vital hope and assistance to families and individuals in need. Through this program, individuals (single taxpayers) can contribute up to $400, while married couples filing jointly can donate up to $800 in Arizona State tax credit!
The YMCA’s accessible, affordable, and licensed child care programs annually serve approximately 3,600 children aged 0-17. Our programs are meticulously designed to suit various ages and developmental stages, preparing preschoolers for kindergarten, nurturing literacy, leadership skills, and instilling essential character values. Upholding the principles of caring, honesty, respect, and responsibility, we embed these values into every facet of our work.
Your donation to the YMCA Tax Credit Fund, LLC directly supports affordable child care in our community. Your generosity aids hardworking individuals and families striving to make ends meet. EIN 86-0326724
CAREERS WITH A CAUSE
FREQUENTLY ASKED QUESTIONS
Q. What is the Charitable Tax Credit?
Arizona residents may claim a tax credit for voluntary cash contributions made during any taxable year to a QCO. The credit is available only to individuals. Taxpayers report the name of the QCO and the dollar amount of the contribution to Arizona Department of Revenue (ADOR) on Form 321.
Q. What is a Qualifying Charitable Organization (QCO)?
A QCO is a charity that is exempt from federal income taxes under Section 501(c)(3). The charity must spend at least 50% of its budget on services to Arizona residents who receive temporary assistance for needy families (TANF) benefits, are low income residents (household income is less than 150% of the federal poverty level) or are children who have a chronic illness or physical disability. A charity has to apply for and meet all requirements of the law to be considered as a QCO.
Q. What is the maximum tax credit?
New in 2016, taxpayers filing as “single,” “head of household” and “married filing separate” status may claim a maximum credit of $400. Taxpayers that file as “married filing jointly” may claim a maximum credit of $800. You don’t have to give the maximum amount; smaller donations are allowed, too.
Q. Can taxpayers claim both charitable and tax credit contributions?
Taxpayers may only claim a tax credit if the organization they donated to is considered a QCO. A complete listing of QCOs is published on the ADOR web site. Donations made to organizations not listed on the department’s published website may be allowed as charitable contributions. Taxpayers cannot claim both a deduction and credit for the same contribution on their Arizona return.
Q. What is the difference between a tax credit and a tax deduction?
A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces a taxpayer’s tax obligation (overall taxes due). A charitable tax deduction reduces the taxable income upon which their tax liability is calculated.
Q. Do I need to itemize my taxes to claim my credit?
Starting in 2013, you do not need to itemize your taxes to qualify for tax credits. Just report the amount you donated to the YMCA on form 321. YMCA Tax Credit Fund, LLC will send you (the donor) a letter confirming your donation. This letter serves as documentation of your contribution.
Q. How do I file for the credit?
There is a simple form (AZ Form 321) that is included with your state tax filing that you or your accountant will complete. The form is included with materials provided by the State of Arizona to all state tax filers.
Q. Does the tax credit also apply to my federal income tax returns?
No. The charitable tax credit applies only on your Arizona State income tax. However, you may be able to claim a federal charitable tax deduction for the amount donated.
Q. When can I make the donation?
You can donate to YMCA Tax Credit Fund, LLC at any time to qualify for the tax credit. Contributions made on, or before, April 15th can be applied to the current or preceding taxable year.
Q. What happens if I don’t owe taxes at the end of the year? Can the Charitable Tax Credit dollars be refunded or can unused amounts be carried forward?
The credit reduces your overall state tax income. If the allowable tax credit is more than your tax or if you have no tax, you may carry the unused credit forward for up to the next five (5) years.
Q. How do I document my contribution?
YMCA Tax Credit Fund, LLC will send you an acknowledgement letter confirming your contribution is eligible for the QCO. This letter, along with your copy of the signed pledge form, or canceled check provides the paperwork needed to document your contribution. These documents are necessary to support your tax credit, so make sure you include your name, home address, email, phone number, on your YMCA pledge form.
Q. Can I donate food, clothing or service to a Qualifying Charitable Organization (QCO) and claim the tax credit?
No. Only cash contributions qualify for the charitable tax credit.
Q. What is the relationship between the YMCA of Southern Arizona and the YMCA Tax Credit Fund, LLC?
YMCA Tax Credit Fund, LLC is a separate 501(c)(3) entity the ADOR has qualified as a QCO. A QCO must spend at least 50% of its budget on services to Arizona residents who are low income or are children who have a chronic illness or physical disability. Low income is defined as families who receive TANF benefits or who make less than 150% of the federal poverty level.
A charity must apply for and meet all requirements of the law to be considered as a QCO. YMCA Tax Credit Fund, LLC receives tax credit eligible donations, and then contracts with YMCA of Southern Arizona to provide qualified services to low income families.
Q. Where can I get more information about the tax credit?
Please consult your tax advisor or find more information by visiting the ADOR website or by calling Taxpayer Assistance at 800.352.4090.
Q. Where is the Working Poor Tax Credit?
The QCO replaces the tax credit formerly known as the Working Poor Tax Credit. This change was made in 2013 to reflect the expansion of the credit to include foster care organizations. Donors who search for information from the Arizona Department of Revenue using the terminology “Working Poor Credit” will be unable to find current information.
IMPORTANT NOTE: The YMCA is not a tax advisor. As with any financial recommendation, contact a qualified tax advisor for expert advice on your specific tax situation. For general information, please visit the Arizona Department of Revenue (ADOR) website at https://azdor.gov/.