Tax Credits
Tax Credits
Give Smarter. Give with Purpose
What is a tax credit? Can I still deduct my donation? What changes with the One Big Beautiful Bill Act? How do Arizona Tax Credits work?
Tax benefits for giving to charity can be confusing. Whether you've a veteran donor or just getting started, we're here to make things simple. When you give to BGCAZ, you're changing lives and taking advantage of tax benefits—a true win-win!
New for 2025
In 2025, Congress passed the One Big Beautiful Bill Act—a sweeping piece of tax legislation that affects how individuals and families can give to the causes they love.
Some of those changes will expand opportunities for everyday donors starting in 2026, especially for people who don’t typically itemize deductions. But others may reduce certain benefits that are still available this year.
That’s why 2025 is an especially impactful year to give. Gifts made before December 31 can still qualify under the current rules—offering strong tax advantages today while fueling life-changing programs for local kids and teens.
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Give Now When It Matters Most
The new tax laws add a threshold to charitable giving deductions next year. Beginning in 2026, only donations that exceed 0.5% of a person's Adjusted Gross Annual Income will be deductible. In short, for the same level of giving, your tax benefit will be reduced next year. Giving in 2025 takes advantage of more flexible deduction rules and maximizes tax benefits.
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More Donors Get Tax Breaks Next Year
Beginning in 2026, people who take the Standard Deduction—or don't itemize their tax deductions—will be able to deduct donations. Single filers can deduct up to $1,000, and married couples can deduct $2,000. This means far more people can take advantage of tax benefits for supporting BGCAZ next year.
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Arizona's Tax Credit is Still Available
In Arizona, you can reduce your state taxes and help local kids when you give to BGCAZ. On top of federal tax benefits, donors can claim a dollar-for-dollar credit for gifts to Qualifying Charitable Organizations (QCOs) like BGCAZ. The limits for this credit change each year. For 2025, single filers could reduce their state taxes by $470 when they gave to QCOs, and married couples could claim $938. In other words, if you owe $400 in state taxes, you can give $400 to BGCAZ "instead," all the way up to the yearly limits.
All About Tax Credits
Understanding tax-advantaged giving doesn’t have to be complicated.
Whether you’ve claimed a charitable deduction before or you’re hearing about Arizona’s tax credit for the first time, the basic idea is simple: when you give to a qualified nonprofit like BGCAZ, you can reduce what you owe in taxes while helping kids in your community.
Some benefits come from the federal government (charitable deductions), and others come from the state (Arizona’s Qualifying Charitable Organization, or QCO, tax credit).
These programs are designed to make generosity easier. Below, you’ll find answers to common questions about how tax-advantaged giving works—no accounting degree required.
Still Have Questions? Let's Talk!
Tax stuff can be confusing! We can't give you tax advice, but we're happy to point you in the right direction when it comes to giving to BGCAZ.
Call Tim, our VP of Resource Development: (602) 757-2641
