Dale Farland
It is tax season, and many of us are thinking about reducing our personal Arizona (AZ) income taxes. Well, here is a legal way to reduce your Arizona income taxes while helping local charities/nonprofits. It is a win-win! A win as you help a charity and a win for you to reduce your Arizona income taxes.
The following are a few of the local charities/nonprofits which have been designated Arizona Qualifying Charitable Organizations (AZQCO):
* Oracle Schools Foundation (OSF)
* SaddleBrooke Community Outreach (SBCO)
* IMPACT of Southern Arizona
* Senior Village at SaddleBrooke
What does donating to an AZQCO charity mean to you? It provides you with the opportunity to direct your tax money to these local charities and receive a tax credit—dollar for dollar—off your AZ income taxes.
There are a few restrictions to follow and you should always discuss this with your tax advisor. The 2025 limit for couples is $987 for married couples and $495 for single individuals. You can donate up to these amounts by April 15, 2026, for your 2025 AZ income taxes. For 2026, the limit amounts increase to $1,009 for married couples and $506 for single individuals.
What if I want to donate to several charities? You can! You just cannot exceed the total amount. For example, you want to donate to SaddleBrooke Community Outreach (SBCO) for their annual food drive in March 2026. However, you have already donated $100 to IMPACT of Southern Arizona, plus $100 to Senior Village for a total of $200. If you are married, that means that you can still donate an additional $787 to other charities for your 2025 AZ income tax limits.
How about donating some of the $787 to both the Oracle Schools Foundation (OSF) and to SaddleBrooke Community Outreach (SBCO)? Both organizations can certainly use the money to help with their mission of helping children and families living in the Copper Corridor.
Beginning March 2 through March 16, the link to SBCO for the Food Drive (community-outreach.org.) will be available for donations. Your donation helps SBCO purchase food for the Tri–Community Food Bank in Mammoth. Your financial donation had greater purchasing power than donated food.
Another charity is the Oracle Schools Foundation (OSF). Donating to the Oracle Schools Foundation (oracleschoolsfoundation.com) all year long helps this entity meet their budget goals to provide free KinderPrep (preschool) scholarships to 3- and 4-year-old children of Oracle. The annual budget just for KinderPrep is $120,000. In addition, OSF funds Accelerated Reading and Enhanced Math for students K-8 at Mt Vista elementary school in Oracle. This school is a Title I school meaning the majority of the families are low income.
So, let’s help out local charities while saving money on your Arizona income taxes!