When I was growing up, giving was always a priority in my family. But as a young adult, it can be hard to prioritize it when you are just starting a career, maybe have a car payment, student loan payments, want to save for traveling, etc. Well, the great thing about Arizona is we have something called the Arizona State Charitable Tax Credit which allows anyone to prioritize giving. The Arizona State Charitable Tax Credit allows individuals to donate up to $400 directly to a qualifying non-profit like Big Brothers Big sisters of Central Arizona.
So how exactly does this work? The toughest part of the Arizona State Charitable Tax Credit is temporarily giving the $400. Why do I say temporarily? Well the majority of us pay taxes all year, and normally we will be getting some kind of state refund. When you give $400 to Big Brothers Big Sisters of Central Arizona, you are directing the tax dollars that the state of Arizona has allocated in their annual budgets for nonprofits to Big Brothers Big Sisters. So, because it is a dollar-for-dollar tax credit, the State of Arizona reimburses you with the tax dollars they have already allocated in their budget. That means if you are already getting a $100 refund, your refund will now increase to $500, receiving that dollar-for-dollar $400 tax credit for donating to Big Brothers Big Sisters of Central Arizona. In other words, you directed your tax dollars for the State of Arizona to Big Brothers Big Sisters of Central Arizona and they reimbursed you for doing their job! This is an amazing opportunity because not many states allow their citizens to direct their tax dollars in this manner. So, it’s important that as citizens of this amazing state, we pick the organizations we believe in to give our Tax Credit dollars to.
I choose to give to Big Brothers Big Sisters of Central Arizona every year. In fact, since starting at Big Brothers Big Sisters of Central Arizona in 2013 I have given almost $4,000 to Big Brothers Big Sisters of Central Arizona and I have gotten it all back on my state taxes by filing form 321. It’s that easy. And since recently getting married, my wife and I have set up our monthly giving with Big Brothers Big Sisters of Central Arizona to equal the $800 that we can contribute as a married couple.
So why do I choose Big Brothers Big Sisters? It’s simple, I believe in the power of mentorship. Children don’t get to choose the life they are born into, they don’t get to choose who their parents are, what their family dynamics are, etc. but at the end of the day, everyone deserves and can benefit from having a mentor in their life. Big Brothers Big Sisters of Central Arizona helps to provide the children in our community with a positive adult mentor. I was fortunate to have a mentor, and so I choose to give my money to an organization that can foster a similar opportunity for young children in our community. It’s the best investment, investing in a child’s future, and our community’s future.
–TJ Shull, Development Manager
Note: *Always consult with your tax professional on the impact a credit will have on your personal tax liability. More information can be found on the Arizona Department of Revenue website.