Certification for QCOs and QFCOs

The Department is posting finalized guidelines for Qualified Charitable Organizations. The document is available for your review here.

Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs) are certified by the Arizona Department of Revenue to receive contributions eligible for the tax credit. This certification only pertains to the Arizona tax credit program. This program does not apply to general licensing, operations, or the deductibility of donations to charitable organizations. To become a QCO or QFCO, a charitable organization must complete the application form and submit it along with required documentation to ADOR. See the application instructions for details.

If your organization meets the qualifications, ADOR will then send a certificate to the primary point of contact for the charitable organization as indicated on the application form. Because ADOR may need to contact the organization for a variety of purposes over time, it is critical that organizations provide updated primary point of contact information to ADOR if and when changes are made.

Charitable organizations may apply for certification at any time during the year. Certification is valid beginning January 1 of the year that an organization is approved. Applications will generally require two to four weeks for processing. ADOR may periodically request organizations to recertify their status, and will request specific information necessary to remain certified. If a QCO wishes to be considered a QFCO, a new application would be necessary.

 

Certification of Qualifying Charitable Organizations

To become a QCO, a charitable organization must complete the QCO Application Form and submit it along with required documentation to ADOR. To qualify, a QCO must meet ALL of the following provisions:

  • Is exempt from federal income taxes under Section 501(c)(3), or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901.
  • If you have not yet applied to be tax-exempt under section 501(c)(3) of the Internal Revenue Code, you can find information on tax exemption, the tax exemption application, and application instructions on the IRS charitable organizations page. If you do not have a copy of your organization's 501(c)(3) determination letter, you can search for your organization's status using the IRS Tax Exempt Organization Search.  
  • Provides services that meet immediate basic needs.
    • cash assistance;
    • medical care;
    • childcare;
    • food; 
    • clothing;
    • shelter;
    • job placement;
    • job training services;
    • any other reasonably necessary support to meet immediate basic needs
       
  • Serves Arizona residents who receive temporary assistance for needy families (TANF) benefits, are low income residents whose household income is less than 150 percent of the federal poverty level, or are chronically ill or physically disabled individuals.
  • Spends at least 50% of its budget on qualified services to qualified Arizona residents.
  • Affirms that it will continue spending at least 50% of its budget on qualified services to qualified Arizona residents.

 

Certification of Qualifying Foster Care Charitable Organizations

To become a QFCO, a charitable organization must complete the QFCO Application Form and submit it along with required documentation to ADOR. To qualify, a QFCO must meet ALL of the following provisions:

  • Is exempt from federal income taxes under Section 501(c)(3) or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901.
  • Provide services that meet immediate basic needs.
    • cash assistance;
    • medical care; 
    • behavioral health services; 
    • Childcare;
    • food (including snacks at a youth event);
    • Clothing;
    • job placement; 
    • job training services;
    • character education programs; 
    • workforce development programs;
    • secondary education student retention programs; 
    • housing or financial literacy services;
    • or any other reasonably necessary support to meet immediate basic needs or provide normalcy.
       
  • Serves qualified individuals.
    • foster child as defined in section 8-501; 
    • person who is participating in an independent living program as prescribed in section 8-521;
    • person who is participating in a transitional independent living program as prescribed by section 8-521.01; 
    • person who is participating in an extended foster care program as prescribed in section 8-521.02; 
    • person who is under twenty-seven years of age and whose reason for leaving foster care is either that they reached eighteen years of age, or adoption or legal guardianship after reaching the age of fifteen, or reunification after reaching the age of fourteen.
  • Spends at least 50% of its budget on qualified services to qualified Arizona residents.
  • Affirm that it will continue spending at least 50% of its budget on qualified services to qualified Arizona residents.
  • Providing ongoing services to at least 200 qualified individuals in the foster care system.
  • Spending at least 50% of its budget on ongoing services to qualified individuals in the foster care system.

 

How to Determine if a Charity is Eligible:

Qualifying services include cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.

2025 Poverty Guidelines for the 48 Contiguous States and the District of Columbia

Persons in family/household ANNUAL INCOME POVERTY GUIDELINE
100% of Poverty Guidelines 150% of Poverty Guidelines
1 $15,060 $22,590
2 $21,150 $31,725
3 $26,650 $39,975
4 $32,150 $48,225
5 $37,650 $56,475
6 $43,150 $64,725
7 $48,650 $72,975
8 $54,150 $81,225
For families/households with more than 8 persons. For families/households with more than 8 persons, add $5,380 for each additional person. For families/households with more than 8 persons, add $8,070 for each additional person.

Source: Federal Register, January 17, 2025

Chronically ill or physically disabled individuals are individuals and whose primary diagnosis is a severe physical condition that may require ongoing, medical or surgical intervention.

Qualifying individuals are foster children (children placed in a foster home or child welfare agency) or a people who are under twenty-one years of age and participating in a transitional independent living program.

A Transitional Independent Living Program provides care and services that complement the person's own efforts to achieve self-sufficiency and to accept personal responsibility for preparing for and making the transition to adulthood.

          QCO/QFCO Program Manager
          Arizona Department of Revenue, OERA
          Email: [email protected]
          Phone number:  (602) 716-6372 ext. 2
        
If you would like to virtually meet with QCO/QFCO Program Manager, please click here. You will be provided with the dates and time slots available. Please select the time and date that works best for you. Once you have selected the time slot, you will be prompted to insert your contact information. You will receive an email with the link to the virtual meeting on the day selected, please save the email to refer back to on the day of the meeting. 

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