Some charities under the Arizona Qualified Charity Tax Credit have a slightly different designation as “umbrella organizations.” They are eligible for contributions of $400 per person and $800 per couple as well, but are listed differently on the State of Arizona’s web site.
For example, Executive Council Charities, Valley of the Sun United Way and other United Way organizations across the state are considered “umbrella organizations” because they may receive tax credit contributions and distribute them to other nonprofit partners in the community.
Locally, Valley of the Sun United Way’s Help The Working Poor Fund is the organization’s tax credit mechanism. United Way uses contributions to fund its own efforts to fight poverty in the community as well as sharing resources with other organizations dealing with homelessness, hunger and other related issues.
Executive Council Charities sponsors the Support Arizona Youth program, where they receive tax credit contributions on behalf of qualified charities and match the contributions to increase their impact.
Mr. & Mrs. Smith owed $2,000 on their taxes, donated the maximum combined amount to all tax credits of $4,383 on their Arizona Tax Returns and will now receive a refund of $2,383. No catch, dollar for dollar assistance to your favorite organizations and schools.