A qualifying charity is a charity that is exempt from federal income tax under Internal Revenue Code Section 501(c)(3). A qualifying charity is also a charity that is a designated community action agency that receives Community Services Block Grant Program money under the United States Code, Title 42, Section 9901. The charity must spend at least 50 percent 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 recipients immediate basic needs. The services must be provided and used in Arizona. Services that meet these needs include cash assistance, medical care, childcare, food, clothing, shelter, job training and job placement services.

How Can I Tell if a Charity Qualifies?

To see if a charity qualifies, you should ask to see a copy of the certification letter the charity sent to the Department of Revenue. You should also ask the charity the following questions.

• Is the charity exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code?
• If the charity is not exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code, is the charity a charity that is a designated community action agency that receives Community Services Block Grant Program money under the United States Code, Title 42, Section 9901?
• Does the charity spend at least 50 percent 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?

The Department of Revenue also keeps a list of agencies that sent certification letters to the department available on our web site. You may call one of the numbers listed on this page to see if a charity has notified the department that it qualifies.

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