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!
Recent Changes to Taxes & Giving
Congress recently passed the One Big Beautiful Bill Act—a sweeping piece of tax legislation that continues to reshape how individuals and families can support the causes they love.
Now that many of these changes are taking effect in 2026, more everyday donors may be able to benefit from tax-advantaged giving, including people who don’t typically itemize deductions. At the same time, other provisions may reduce or limit certain tax benefits compared to previous years.
That’s why giving strategically in 2026 matters more than ever. A gift to BGCAZ can help strengthen life-changing programs for local kids and teens—while also helping you take advantage of available federal and Arizona tax benefits this year.
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More Donors Get Tax Breaks This Year
This year, 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 this 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.
In 2026, single filers can claim up to $506, and married couples can claim up to $1,009. 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.
A tax credit reduces your tax liability dollar-for-dollar. In other words, a tax credit comes right off the top of your state tax bill, lowering the amount you will pay. In Arizona, we have a tax credit for supporting organizations like BGCAZ—Qualifying Charitable Organizations (QCOs).
A tax deduction reduces the amount of your income that is taxed by the government. This includes the IRS's standard deduction, which reduces someone's taxable income by a standard amount instead of adding up—or itemizing—other deductions. A tax deduction generally provides a smaller benefit to a taxpayer than a tax credit.
Starting this year, filers who itemize their deductions can only deduct donations that exceed 0.5% of a person's Adjusted Gross Annual Income. Filers who take the Standard Deduction have no such floor.
In addition to federal tax benefits, Arizona allows residents to claim a credit for donations to Qualifying Charitable Organizations (QCOs) like BGCAZ. For 2026, you can claim up to $506 for single filers and $1,009 for married couples filing jointly.
For example, if you owe $1,000 in Arizona state taxes, and donate at least $506 to BGCAZ, you can claim a $506 credit, and your tax bill will go down to $494.
Ha! Arizona's Charitable Tax Credit does seem that way. Because giving to BGCAZ has such a powerful impact on communities in Arizona, the state accepts that donations to BGCAZ are just as good—if not better—than giving that same money to Arizona in taxes (up to the yearly limits). Our research shows that a donation to BGCAZ has a more than 14X ROI back to the state of Arizona.
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: +16027572641
