This quarterly newsletter provides recent updates and education information important to Arizona STOs.

Due Date Reminders

June 30th - FY 2013/14 90% funds required to be paid as scholarships or allocated to future awards for specific students.

September 30th - FY 2016 Annual Reports are due for each credit for which your organization is certified. The signed engagement letter(s) for your audit or review and agreed-upon procedures engagement(s) should be attached to the report.

At Any Time – When leadership, address, phone number, website, or email address changes, submit an updated certification form to ADOR.

AZ Charitable and Foster Care Tax Credit Limits Increased for 2016

Last month, the Arizona Legislature passed a bill to increase the limits on the Qualifying Charitable Organizations Credit (formerly the Working Poor Credit) and the Qualifying Foster Care Charitable Organizations Credit. Now, married taxpayers can take a credit of up to $800 and $1,000 for each of the credits, respectively, for a total of $1,800 per year.

Although the STO contribution limits only increased by their annual cost-of-living adjustment, this change to the other tax credits may affect your organization's fundraising efforts as taxpayers now have more options for offsetting their state income tax liability with Arizona tax credits. Please keep in mind that only the STO contributions and the public school tax credit contributions (still $200 for Single and $400 for Married Filing Joint taxpayers) are eligible to be made through the due date of the return; the charitable and foster care credits must still be made by December 31st of the tax year.

Using Form 990 to Make Your Organization Shine

You might think of preparing your Form 990 as just another compliance item to keep your organization on the IRS's good side. However, since this form is public information, it is time to think of it as an opportunity to spotlight all of your organization's accomplishments and to attract support for your cause. This Journal of Accountancy article has some great tips for using your 990 as a marketing tool.

Free IRS Workshops on Compliance for Charities

The IRS offers virtual workshops that cover the basics of tax compliance for small and medium-sized 501(c)(3) organizations. The workshops are geared towards organizational leaders that would like to learn more about staying tax-exempt, filing information returns, and other compliance issues. The workshops can be viewed at www.stayexempt.irs.gov.