Thanksgiving is a season of joy, family time, sharing and giving to others. During this time, you may receive various donation requests, and requests offering a redirection of AZ tax dollars in the form of tax credits. Although both are important, there are distinct differences that we will clarify to help simplify for this season of giving.

Donating to causes that help others is an act of charity that many community-minded individuals support. There are community drives, charitable events and other ways for people support causes dear to them. Memorial scholarships are also created in people’s names to honor them and their legacy.

In most cases, charitable donations are sacrificial, meaning money comes directly from the donor’s bank account. The donor may or may not receive a charitable tax deduction for their donation, and must make them within the confines of the calendar year.

Then there is the option of participation in the Arizona State Tax Credits!

In Arizona, there are alternatives to traditional donations that allow taxpayers to redirect their state tax dollars to causes they care about that result in a dollar-for-dollar tax credit against what they owe the state. One of these is the direction of tax dollars through the Arizona Private Education Tax Credit.  Through participation in the tax credit program, taxpayers are given the opportunity to direct a portion their state tax liability toward tuition scholarships at Catholic schools, providing high quality educational opportunities for underserved families, at ultimately no cost to the taxpayer!

The Difference in Redirecting and Donating

For example, The Diocese of Phoenix Catholic Schools 365 Fund is an emergency scholarship fund that allows individuals to give a charitable donation that creates scholarships to help families in emergency situations pay their tuition. This form of support is not a dollar-for-dollar tax credit but would be a charitable donation. For more information on this please visit: https://dphx.org/catholic-schools-365 /.

Through support of Catholic Education Arizona, you can redirect your state tax liability to help y families afford a quality, Catholic education. This would be a dollar-for-dollar tax credit! 

Taxpayers can control what a portion of their tax liability supports. To those invested in quality education of Arizona’s youth – and thus the future – contributing to an CEA is a great way to make a difference.

For more information on directing your owed tax credit, visit Catholic Education Arizona Contribute today!