May is Foster Care Awareness Month, a time to recognize the needs of over 7000 children currently in Arizona’s foster care system, and the organizations that support them. It’s also a time to focus on a powerful giving tool that makes a significant difference: the Arizona Foster Care Tax Credit.
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This tax credit allows Arizona taxpayers to make adollar-for-dollar deduction from their state income taxes by donating to qualified foster care organizations.
Surprisingly, only about 1% of taxpayers take advantage of this tax credit, which can be combined with school tax credits, offering multiple avenues for impactful giving.
For those unfamiliar with charity tax credits, [click here for a brief overview]. Arizona is one of the few innovative states that empower taxpayers to redirect a portion of taxes owed to qualified charities. It’s a way for Arizonans to actively participate in shaping the future of our communities!
As a retired entrepreneur, I love a great deal. This deal empowers us to donate up to $1,234 (married) or $618 (single) towards our most precious asset: our children – and then deduct that donated amount from state income taxes owed.
As the CEO of a foster care nonprofit, I can tell you that these donated funds are vital; they’re lifelines. These “lifelines” allow us to provide critical services to help shape a child’s future. It’s an essential part of planned funding; we bank on it to provide crucial resources towards the stability of children who have experienced significant trauma. These funds allow us to offer everything from emergency shelter to enabling precious moments of childhood joy. These services transform the course of a foster child’s life and, most importantly, reinforce that they are deeply valued and loved by our community.
If an additional 1% of current AZ tax filers (roughly 35,000 people) used their foster care tax credit, it would result in $15M or more for supporting foster children, foster families, and the entire foster care ecosystem. This additional funding could expand foster programs, reach more families, fund more programs supporting family placement and provide more comprehensive care. We could support more children with secondary education assistance, create more moments of joys and give more youths aging out an opportunity to break a cycle. This money translates directly into hope and healing, creating a ripple effect of positive change throughout our state.
This Foster Care Awareness Month presents a powerful opportunity to make a meaningful difference. We urge you to inform your employees, family members, and friends about this foster care tax credit. But please don’t wait, the summer months are the time of the year where most nonprofits are desperately trying to stretch dollars to make it to December, which is when most people give. However, the meaningful work that nonprofits are doing is year-round and the need doesn’t change. Your tax credit donation will have an incredible impact NOW.
If you don’t know where to start in finding a qualified foster charity organization (QFCOs) that speaks to you, there is a free web resource: www.AZTaxCreditList.com that makes it easy.
Your kindness and generosity during Foster Care Awareness Month and beyond make a profound difference. Thank you.
Authors: Gary Heath is a software entrepreneur and Luis De La Cruz is the CEO of a nonprofit.
