Arizona Private School Tuition Tax Credit law requires you to understand the following: “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.”
Donation Swapping is Strictly Prohibited
Arizona Tuition Organization (AZTO) does not condone, endorse, or accept the practice of swapping donations. This giving scenario is strictly prohibited by state and federal tax law. In swapping donations with another parent or parents, all involved receive a private benefit from making the donation and void the charitable nature of the donation. If contributions are received with a swapping relationship, the donors’ recommendations will be automatically disregarded. AZTO cannot knowingly accept any contributions given in this context.
A Donation made for your own Child is Strictly Prohibited
Arizona statute prohibits a donor from making a recommended donation for their own child or dependent. This restriction includes a non-custodial parent even if the student is not being claimed as a dependent.
Recommendations are Accepted but NOT a Guarantee of an Award
All recommended and non-recommended donations are at the complete and sole discretion of AZTO as defined by Arizona regulation. As a 501c3 organization, AZTO must maintain autonomy in the award process. All eligible students must complete annual applications and be approved for participation in AZTO’s program. Please see more information on Recommendations.