AZTO does not endorse or promote the practice of swapping donations with another’s family for the benefit of your own dependant. According to the tax credit law, the contribution does not qualify for the Private School Tuition Tax Credit if given for the benefit of one’s own dependent. While recommending another’s child is allowed, swapping with someone else’s child in exchange for their recommending your own child is strictly prohibited. This also includes a swapping pool of two or more families. Per the Arizona Private School Tuition Tax Credit law:
“NOTICE: A SCHOOL TUITION ORGANIZATION CANNOT AWARD, RESTRICT OR RESERVE SCHOLARSHIPS SOLELY ON THE BASIS OF 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.
If contributions are received with a swapping relationship, the donors’ recommendations will be disregarded. AZTO cannot knowingly accept any contributions given in this context.