Giving back: How the charitable tax credit makes year-end giving easy, and how businesses can help

Many Arizonans are thinking about year-end giving and how they can help those in need during the holiday season. 

Charities like St. Vincent de Paul are reminding the community of the unique opportunities made possible by the Arizona Charitable Tax Credit, which allows donors to make a meaningful impact on local charities while receiving a dollar-for-dollar credit on their state income taxes. 

Arizona Charitable Tax Credit 

For 2024, this credit has increased, allowing joint filers to donate up to $938 and single filers up to $470. This generous incentive not only supports vital nonprofit work but can also align with their employer’s philanthropic goals. In 2025, the maximum allowable amounts will be $495 for a single filer and $987 for joint filers. 

Under the Arizona Charitable Tax Credit, donations to organizations like St. Vincent de Paul are credited directly against the donor’s tax liability, reducing what the donor would otherwise owe to the state. With this credit, a $938 contribution could:  

• Serve 208 hot meals for families and individuals in need. 
• Support one week of transitional housing for those rebuilding their lives. 
• Provide care for four patients at St. Vincent de Paul’s dental clinic. 

How businesses can help 

For more than 75 years, St. Vincent de Paul has been a lifeline for vulnerable Arizonans. By addressing food insecurity, homelessness, and healthcare needs, the organization has become a cornerstone of the community. Arizona businesses can help ensure these services reach those who need them most. 

In addition to monetary donations, businesses can: 

Establish matching gift programs
Many employers match charitable contributions dollar for dollar, doubling the impact of every employee’s gift. Matching programs often include employee spouses and retirees, allowing even more opportunities for participation. 

Host in-kind donation drives
In-kind drives are an excellent way to bring a team together while supporting a worthy cause. Businesses could collect food, clothing, shoes, backpacks, or toys during summer or winter to address seasonal needs. These drives not only provide essential resources for the community but also foster camaraderie among staff and clients.

Volunteer
Volunteering is a powerful way for businesses to give back. St. Vincent de Paul relies on volunteers for 95% of its workforce. Businesses can participate as small groups, large groups, or even individually. Virtual volunteer opportunities are also available, offering flexibility to fit employees’ schedules. By volunteering, employees directly contribute to feeding, clothing, housing, and healing their neighbors in need.

Learn more 

To learn more about St. Vincent de Paul or how to participate in their programs, visit their website. More information about Arizona’s various tax credit programs can be found at the Arizona Department of Revenue.