Common Misconceptions About the Arizona Charitable Tax Credit

If you have not directed your tax funds to a charity, or done anything with them at all, then you may be unfamiliar with the details of the Arizona Charitable Tax Credit. The requirements have changed over the years, and there’s a lot of information to know. Naturally, there are misconceptions about the credit. If you have a tax deductible charity that you want to donate to, like Paz de Cristo, then you need to know the facts.

Misconception #1: You Can Direct Funds to Any Charity

If you have a charity in mind to direct funds to, you first need to be sure that they qualify. Not all charitable organizations in Arizona are eligible to receive your tax funds. Money must be directed to Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs).

According to the Arizona Department of Revenue, QCOs offer immediate help to low-income Arizona families in need, as well as the children of those with chronic illnesses and/or physical disabilities. Paz de Cristo is a working poor charity that is certified as a QCO. Our volunteers work every single day of the year to give and receive food boxes, hand out food, and empower those who need it.

QFCOs do the same as QCOs, with an added stipulation. They have to direct at least half of their budgets to serve children in foster homes and welfare agencies.

Misconception #2: Contributions Must Be Made By Dec. 31st

Some people think that contributions to QCOs and QFCOs have to be made by the end of the calendar year to be eligible for state tax credits. This is untrue, however! Arizona authorizes contributions from taxpayers to be made up until April of the current year for the tax year prior. That means that in the year 2022, donations for the 2021 tax year must be made by April 15, 2022.

Misconception #3: QCOs and QFCOs Can Receive the Same Amount of Money

It is important to note, prior to making any contributions, that the sum of money that can be given to a QCO differs from the amount of money that can be given to a QFCO. According to, the maximum credit permitted for donations for Qualifying Charitable Organizations for singles, married and filing separately taxpayers, or heads of households is $400. Joint taxpayers may direct up to double that.

When it comes to QFCOs, those who are filing as a single, those who are married and filing separately, and heads of households can direct up to $500. Again, joint taxpayers may direct up to double that.

If you don’t have the time to take advantage of community service opportunities or the resources to put together a food box, consider taking the easy step to use your tax dollars to make a difference. We at Paz de Cristo would be happy to help you do so, and we appreciate any funds directed our way!