Who can donate?
Any taxpayer with an Arizona state tax liability may receive a dollar-for-dollar tax credit for their donation to IBE. Their liability is entitled “Subtotal of Tax” and is found on Line #48 of their AZ 140 tax form.
What if I don’t live in Arizona but would still like to make a donation?
Any donors who live outside of Arizona may still donate. IBE is a 501c3 nonprofit organization; if a donor itemizes their federal taxes they may donate and list their contribution as a federal charitable deduction. If claiming as a federal charitable deduction, your donation must be completed by December 31st.
How much can I donate?
Original Individual PLUS2023 single filers maximum donation: $6552023 married filing joint maximum donation: $1,3082023 single filers maximum donation: $6522023 married filing joint maximum donation: $1,301
By law, you may only donate to PLUS/Switcher if you have fulfilled your Original Individual donation for that tax year.
* Notice: A.RS. 43-1603: A school tuition organization cannot award, restrict or reserve scholarships bases 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 taxpayers own dependent.
How do I donate?
You may donate online or over the phone with a debit or credit card. If contributing by mail, you may donate using a debit/credit card or check. If donating in person, IBE accepts all forms of payment.
Do I have to donate the full amount?
No. A donation in any amount is appreciated, plus you do not want to donate more than your annual state tax liability for that tax year. If you wish to donate the full amount, but would like it divided into smaller payments, please consider becoming a monthly donor. You may complete the monthly donation form here. IBE will charge your credit card or auto debit your account a pre-determined amount of your choosing on the 22nd of each month.
. When do I need to donate by?
For Arizona state tax credit the donation may be made up until tax day. For donations made between January 1st and tax day, the donor chooses the tax year they wish to claim the credit for (prior tax year or current tax year).
How much of my donation goes to scholarships?
IBE awards 92% of donations to scholarships.
How does IBE account for the 8% retained?
IBE must pay for all operational and administrative expenses out the 8%. These expenses include, but are not limited to:
o Credit card fees
o Banking services
o Marketing materials (brochures, donation envelopes, etc.)
o Database management
o Office building, utilities, supplies, etc.
o Salaries and benefits
o IBE continuously looks for opportunities to award additional scholarships out of our administrative expenses
Can I contribute to both public and private schools?
Yes. The tax credits for private and public schools are independent from one another. The determining factor will be your annual state tax liability for that tax year. This is entitled “Subtotal of Tax” and is found on line #48 of your AZ 140 tax form.
Are there other tax credits available?
Yes. In addition to both the private and public school tax credits there are tax credits for Foster Care, Military Relief Fund and a Qualifying Charitable Organization. For more information on tax credits please visit the Arizona Department of Revenue website at www.azdor.gov/TaxCredits.aspx.
If I donate and recommend a friend’s child, will that child receive my donation?
While there is no guarantee, IBE does its best to honor the wishes of the donor whenever possible. If donating under the PLUS/Switcher program, certain eligibility requirements exist. To qualify under the PLUS/Switcher program, a child must meet at least one of the following criteria:
- Entering Kindergarten
- Transferring from an Arizona public or charter school after at least 90 days of attendance in the prior school year
- Previously received a PLUS/Switcher, Low-Income Corporate or Disabled/Displaced Corporate in a prior year and continued to attend private school
- Is a dependent of a member of active duty military stationed in Arizona on Orders
- Is a disabled preschooler who is at least 3 years of age with an Arizona public school IEP or MET enrolled in a qualified private preschool
- Transferring from an Arizona homeschool program; or
- Transferring from an Empowerment Scholarship Account (ESA) program in the previous semester; or
- A public, private or homeschool program from out of state or out of country.
If my recommendation is honored, when will the child receive the funds?
Donations are typically processed within 24-48 business hours. Provided the receiving family has a current application on file, funds will then be available and offered to the school on behalf of the recommended child during our monthly report cycle; the 1st of each month. The funds are always available for the current school year, regardless of the tax year claimed by the donor. If a child will not be attending until the following school year, the award will not be paid to the school until that time.
Can I donate to my own child?
Unfortunately, no. Donors may not recommend their own dependent as a recipient.
Can my company match my donation?
Yes! Please check with your employer to see if they participate in a matching gift-giving program.
Can my company donate?
For a company to be eligible to donate, that company must file their taxes as a C-Corporation, S-Corporation, LLC that files as an S-Corporation or insurance companies that pay taxes on premiums collected in Arizona. Companies are not eligible to donate and recommend a child as the recipient of their donation. However, companies are eligible to donate and recommend an Arizona private school of their choosing to benefit from their donation.
Is IBE audited?
Yes. The law requires IBE to have an annual independent audit completed and the IBE Board of Trustees has required this audit even before it was part of the law. Transparency is paramount to IBE.
18. Can I donate and recommend a student who is utilizing the Universal ESA program?
Yes! You can always make that recommendation and while IBE can still make Recommended Fund Scholarship awards to that student, we will not be able to send those scholarship funds to their private school until the student is no longer accepting ESA funds. This allows students to accumulate multi-year scholarships for a time when their ESA funding does not adequately cover their tuition.