How much of a contribution goes to scholarships?IBE awards a minimum of 92% of all tax credit donations to students.
How does IBE account for the 8 percent retained?IBE must pay for all operational, administrative, and promotional expenses out of the 8 percent retained. Those expenses include, but are not limited to:
- Credit card services: Banks charge approximately 2.5 % of all donations made by credit card. IBE pays those fees as a service to our donors.
- Banking services
- Office and program management for all four of the Arizona state tax credit programs.
- Data base management to integrate donations with correct donor; correct tax credit program; scholarship recipients; and schools attended by recipients.
- Communication with recipient families; receipts issues to donors; verification reports sent to schools; financial disbursals of scholarships made to schools for awarded students monthly (for individual awards) or twice-annually (for Financial Aid/FNB/ or Corporate awards)
- Production of brochures, fact sheets, applications, donation envelopes, training materials, and other support material for families and donors.
- Scholarship Application processing / assessing / awarding / and subsequent 5-step communication process
- Marketing and Public Relations
- Present personally-structured education programs for schools and parents
- Office building, utilities, insurances, phones, copying, postage, etc.
- Salaries, wages, benefits
- Transportation (to schools, State Capitol, community outreach events, etc.)
- Website and social media upkeep
Is IBE audited by an independent CPA?Yes, the IBE Board of Trustees began requiring an independent audit every year since 2002…eight years before the AZ Department of Revenue began requiring them.
May we contribute to both the public and private school tax credit programs?Yes, you sure can! In fact, you may also donate to the Working Poor (with a listing of over 200 charity options).
Is a donation to IBE eligible for a Federal charitable deduction?In most cases, yes. We are a 501(c)(3) charitable organization. However, you should check with your tax consultant for advice pertaining to your situation.
Can a business donate to the AZ Tax Credit Program?Absolutely! Check out our Donor page for Corporate donors! It is located as a drop-down under the Donor tab.
May my employer match my donation?Yes! Please check with your employer to see if they participate in a donation matching program.
May I have my contribution set up as an automatic deduction?Yes! It only takes five minutes! Just call or visit the IBE business office and we will take it from there.
If a friend donates, and recommends my child – will my child receive that donation?While there is no guarantee, if the scholarship committee awards a scholarship to your child, you will be notified through your IBE file within two weeks. Notice (A.R.S 43-1603): A school tuition organization cannot award, restrict, or reserve scholarships based solely on a donor’s recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.