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Some year-end charitable donations include a state-specific tax credit


Some year-end charitable donations include a state-specific tax credit

Loni Nannini Special to the Arizona Daily Star

'Tis the night before Christmas and Hannakuh and no matter which holiday you do -- or don't -- celebrate, there is still time to make a difference for nonprofits that help those in need before the year ends.

As an added bonus for generosity to local nonprofits, you might be eligible for a state-specific tax credit on your Arizona income taxes.

"These Arizona tax credits are beneficial to taxpayers because they can essentially take money they would otherwise be paying in taxes and direct it to a Qualified Charitable Organization (QCO) they would like to support. It is like taking a little piece of your taxes and directing it to a cause you care about to benefit the community: It is a win, win, win," said Jenny Flynn, President and CEO of the Community Foundation for Southern Arizona.

Arizona taxpayers have several options for 2024 tax credits (https://azdor.gov/tax-credits) that reduce tax liability, including the Public School tax credit ($200 for individual filers and $400 for married couples filing jointly); the QCO tax credit ($470 for individuals and $938 for married couples filing jointly); and the Qualifying Foster Charitable Organization (QFCO) tax credit ($587 for individuals and $1,173 for married couples filing jointly).

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Donations made through April 15, 2025, can qualify for either the 2024 or 2025 tax credit. Find more information and a list of eligible qualifying organizations online at https://azdor.gov/tax-credits/credits-contributions-qcos-and-qfcos.

Flynn emphasized that the nonprofits, which range in size from small to large, must meet state criteria and tax credit dollars have been an invaluable resource in aiding their missions.

"If they have a number of supporters donating tax credit dollars, it is really incredible for their budgets and allows them to do great work in the community," Flynn said.

Boys to Men Tucson (https://btmtucson.com/) is one organization that relies heavily on QCO tax credit donations. The grassroots effort provides mentorship about healthy masculinity and supports the healing and growth of boys and masculine-identified youth through intergenerational connections.

Last year, the small nonprofit served more than 370 boys through site-based talking circles in local schools and other facilities, including the Pima County Juvenile Detention System, Goodwill of Southern Arizona Youth Re-engagement Center; and the District Alternative Education Program through TUSD.

"When youth don't have positive and healthy role models for masculinity in their lives, it can create a lot of harm on the community scale in regards to violence. Youth need love and support so there are options for choices before violence becomes the option. It makes the community safer for everyone -- the youth, women, children, and all their relatives," said Mark McKenna, fund development manager for Boys to Men.

McKenna, a sixth-generation Tucsonan, said that Boys to Men does its best to find mentors who are culturally and demographically aligned with the youth in order to curate "a very safe and trust-building space that resonates their own experiences."

He emphasized the importance of the tax credit to help the organization cover operating costs.

"We rely largely on the generosity of folks in the community. Donations -- anywhere from $5 to the full tax-deductible amount -- are so appreciated by our organization," McKenna said.

For those looking to gift their time in 2025, Boys to Men has an ongoing need for volunteers to serve as healthy, consistent, safe and loving mentors. It offers free training, and McKenna emphasized that there is no such thing as a "perfect" mentor.

"We just ask people to show up as they are in an honest way ... lots of times kids see adults as not relatable, and we want to offer these kids the opportunity to figure out what it is they value without being told what values to have," he said. "They just need to be given room to be creative and grow."

Visit https://btmtucson.com/ for more information, or send an email to [email protected].

Those looking for even larger tax benefits can consider the QFCO, which benefits children and young people involved with the foster care system.

Locally, eight QFCO organizations are affiliated with the tax credit; the entire list is available at https://azdor.gov/sites/default/files/2024-01/CREDITS_2024_qfco.pdf.

Among the unique nonprofits is I Am You 360, which recently held the ribbon cutting for a tiny home community for young adults ages 18 to 22 who are aging out of foster care.

"The goal of this community is to treat these kids with dignity and sew them back into the fabric of our community. For years, they were called 'the forgotten ones' and the I Am You 360 strategy for this particular population is to replace that with the movement of 'I am Somebody,'" said Founder and CEO Desiree Cook.

Cook said the environmentally-friendly community of nine tiny homes is also a springboard into home ownership for the young adults so that 'they never have to be homeless again."

The QFCO tax credit supports the organization's core missions of housing and hygiene.

"There is housing insecurity and food insecurity, but I am You 360 talks about hygiene insecurity, which is something that we usually take for granted. We want to emphasize the importance of hygiene as a basic human need that kids in foster care usually don't have access to. We customize hygiene according to age, gender and ethnicity," Cooke said.

I am You 360 also puts the spotlight on the fact that nationwide, 2.7 million grandparents -- many on fixed incomes -- are raising grandchildren or great-grandchildren, and the nonprofit seeks to fill the basic needs gap for those in Tucson. Donations can be made online at https://iamyou360.org/.

Those interested in tax-deductible donations beyond tax credits can consider making a donation to the Community Foundation for Southern Arizona CORE Grants program (https://cfsaz.org/grants/core-grants/), which has granted more than $6 million to 142 nonprofits in Southern Arizona since 2017.

"I encourage people to learn more about the CORE Grants program," Flynn said. "We make sure to find nonprofits that are incredibly well-run and impactful and distribute grants each spring,"

The Community Foundation has also opened nominations for the BLOOM Awards, which celebrates individuals, families, businesses, and nonprofits who are changemakers in the community.

"If people know local heroes, we would love for them to nominate them and help us to celebrate them. One of our values at the Community Foundation is to embrace and celebrate community and one way we do that is by lifting people who are changemakers," Flynn said.

Nominations for BLOOM Awards are open through Friday, Jan. 10, 2025. Go to https://cfsaz.org/what/awards/bloom-awards/ to find more information.

Contact freelance writer Loni Nannini at [email protected]

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