Charitable Tax Credit Q&A

Q: If I make a donation today, to which tax year will it be credited?

A: A donation made by April 15th may be applied as a state tax credit to this year or the previous tax year. Make an online donation by midnight April 15th or mail your donation (postmarked April 15th or earlier). However, donations on a federal tax return will apply to the calendar year in which the donation was made. Please contact your tax advisor or visit for more information.

Q: What is the Charitable Tax Credit?

A: The Charitable Tax Credit is a charitable contribution you can give to qualifying Arizona charitable organizations. Highlands Hope Initiative is an approved recipient. You can receive a dollar for dollar tax credit on your Arizona state income tax return while helping people in our local community - at no additional cost to you. Your gift goes directly to Highlands Hope instead of the state.

Q: What is the difference between a tax credit and a tax deduction?

A: A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces your tax liability dollar for dollar and comes off at the bottom line. A tax deduction reduces the taxable income upon which your tax liability is calculated.

Q: Can I take the Charitable Tax Credit if I take the Public School Tax Credit, the Private Tuition Organization Charitable Tax Credit, and /or the Foster Care Tax Credit?

A: Yes, they are separate credits. with separate limits, and you are allowed to take advantage of all four charitable contributions.

Q: What is a "qualifying charitable organization?"

A: A qualifying charitable organization is a tax exempt (501)(c)(3) organization or community action agency that allocates at least 50 percent of its budget to services that help state aid recipients or the working poor with their immediate basic needs. Services, which must be provided and used in Arizona, may include food, shelter, health care, child care, job placement and/or job training.

Q: How do you utilize the Charitable Tax Credit dollars?

A: At Highlands Hope, our mission is to help those in need in the local community. Your tax credit dollars will go toward assistance and programs that help people with disabilities, financial barriers, and those needing resources to find work.

Q: How much can I give?

A: The amount you give is up to you, however the maximum tax credit you can receive is $800 for married couples filing jointly and $400 if filing single. Please contact your tax advisor or visit for more information.

Q: Do I need to itemize?

A: No. You do not need to itemize deductions to claim the tax credit.

Q&A Continued

Q: Can a business make a contribution and claim the tax credit?

A: No. Only individual taxpayers may claim this tax credit.

Q: Can Charitable Tax Credit dollars be refunded or can unused amounts be carried forward?

A: Charitable Tax Credit dollars cannot be refunded. They can only be used to reduce your state tax liability to zero. Any unused dollars may be carried forward for up to the next five taxable years.

Q: Can I make contributions to more than one qualifying charitable organization?

A: Yes, but the total Charitable Tax Credit allowed is $400 per individual or $800 for married couples filing jointly, regardless of the number of organizations you support.

Q: Can I donate food, clothing or services to a qualifying charitable organization and claim the tax credit for those donations?

A: No. Only cash contributions qualify for the Charitable Tax Credit. 

Q: Can my donation impact my Federal taxes? 

A. Check with your tax adviser, but yes, your donation may qualify as a deduction on your Federal tax return, for the tax year in which the donation was made. 

Q: Where can I get more information about the tax credit?

A: You can get more information by visiting the Arizona Department of Revenue website at or by calling Taxpayer Assistance at (602) 255-3381.

Q: Will I receive acknowledgement for my tax credit donation?

A: Yes, Highlands Hope Initiatives will send you written acknowledgement for your donation in a timely manner that can be used for your Arizona and IRS tax returns. Our Tax ID is 47-1865304.