Report: Arizona tax credit programs help charities



(The Center Square) – The Arizona Qualifying Charitable Organizations and Qualifying Foster Care Organizations tax credits have helped many organizations with their funding, according to a new Common Sense Institute of Arizona report.

The report found that taxpayers can get up to $891 in credits for taking part in the programs, and this has led to an estimated $109 million contributed a year to charities.

“Arizona’s tax credit program for Qualifying Charitable Organizations and Qualifying Foster Care Organizations is a shining example of how strategic policy can foster a culture of giving and yield significant economic benefits,” César Chávez, CSI Arizona Community Steward Fellow said in a statement about the report.

“This report underscores the importance of maintaining support for these vital programs that not only address immediate community needs but also contribute to the overall economic vitality of the state,” Chávez, a former Arizona Democratic state senator, added.

They also found that the support toward “qualifying non-profits” and “other induced giving” is tied to an estimated $0.7 billion to $2.5 billion uptick in Arizona’s gross domestic product. As these nonprofits also have staff or support jobs directly or indirectly, the report estimates that 14,000 to 40,000 jobs were “created or supported” each year.

Overall, the report emphasizes that the credit served as an incentive for people to give at a time when people are being more financially cautious due to inflation.

“Beyond this economic benefit, we estimated that the tax credit for contributions to QCO’s and QFCO’s, through halo and reputational effects, induces between $335 and $486 million in total giving that would not have occurred otherwise,” the report states.

Over 200,000 Arizona taxpayers are estimated to take advantage of the credit, which CSI says is about 5-7% of all taxpayers statewide. However, the report notes that trust in both nonprofits and government institutions has declined since 2020, but trust in nonprofits is still significantly higher by comparison, citing Pew Research Center and Independent Sector data.



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