What is a qualifying charitable organization?

A qualifying charity is one that is exempt from federal income tax and that is a designated community action agency that receives Community Services Block Grant Program money. The charity must spend at least 50% of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families benefits or to low-income Arizona residents and their households.

For the purpose of this credit, qualifying services are services that meet the recipient's immediate basic needs. The services must be provided and used in Arizona. Services that meet these needs include cash assistance, medical care, child care, food, clothing, shelter, job training, and job placement services.

To see if a charity qualifies, you can check this list of qualifying charities or this list of umbrella organizations.

A qualifying charitable organization also includes charities that are qualifying foster care charitable organizations. A qualifying foster care charitable organization is a qualifying charitable organization that each operating year provides services to at least two hundred foster children in Arizona. The charity must spend at least 50% of its budget on services to foster children in this state.

For the purpose of this credit, "foster child" means a child placed in a foster home or child welfare agency, and "foster home" means a home maintained by any individual or individuals having the care or control of minor children, other than those related to each other by blood or marriage, or related to such individuals, or who are legal wards of such individuals.

To see if a foster care charity qualifies, you can check this list of qualifying foster care charities.

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