The QCO concept is confusing for most people at first, so don’t worry, you’re not alone! We hope to take some of the mystery out of Qualified Charitable Organizations, like Manes and Miracles, in the hopes that the more you know, the more good you can do without having to spend a penny more!
The video or information below should answer most of your questions. However, if you are still left puzzled but with a desire to help, please contact us. We would love to help you out!
What is a QCO?
Simply put, a QCO (Qualified Charitable Organization) is a non-profit that the State of Arizona sees as providing such a valuable service to the disabled or under-privileged, that they are willing to let you send your tax money directly to the non-profit instead of to the state!
What does that mean for you?
Well, it means more money back in your tax refund! It means you get to tell the government how you want your money spent! It means, you get to make a profound difference in the lives of the kiddos we work with, like sweet Carter who prayed nightly for a chance to work with our horses until we had enough funding to provide him with a scholarship!
How Does It Work??
You like to do good. You love to contribute to your community and the great causes that abound here. Arizona wants to take the financial sting out of helping some of these great causes. Arizona took a look at what we do at Manes and Miracles, how we spend our resources, and the people we serve and designated us a cause worthy of the QCO designation! We must re-prove each year that we are using our resources prudently, specifically for the special kids we love to help.
So now when you donate to Manes and Miracles and let Arizona know how much you shared with us by filling out form AZ 321 (easily done with your accountant or on the major DIY tax programs), they will take that amount off of whatever you would otherwise owe them in taxes! If you owe less (or nothing), they will give you back more! In the example above, the couple could have made a donation to Manes and Miracles for $700 that year and only ended up owing Arizona $2! They would have gotten a refund of $1,644 instead of just $944. That $702 that went for Arizona to decide how to spend could have instead gone right to a cause of their choosing! Whether your contribution is made in one lump sum, a recurring donation, or in bits throughout the year, you directly create a positive impact in your community.
What Does This Mean for Manes and Miracles?
I know, I know, it’s kind of a hassle. But if you only knew the profound impact you can make…
The cost to run Manes and Miracles is about $100,000 annually. We do all we can to keep this cost as low as possible. Without donors and fundraising to cover these expenses, an average session would cost our Manes and Miracles families $90! But thanks to fundraising efforts and the generous help from our supportive community, we offset the majority, if not ALL of those costs. With your help, we are able to provide scholarships for riders. We are able to build new, engaging stations and exciting projects throughout the facility. We are able to keep our horses bellies full. We are able to develop additional programs. We are able to focus less time and energy on fundraising, and more time on the areas that truly make a difference. We are able to make MIRACLES!
Tell Me More! (AKA, FAQ’s)
Exactly how do I do this?
Step 1. Make a financial contribution to Manes and Miracles. This gift can be a one time deal, or several gifts made throughout the year. Please visit >This Link< for more details on ways to contribute. (Save your receipt!)
Step 2. Fill out AZ Form 321 when submitting your state taxes. All major tax preparation options have access to that form or it can be found >here<. Manes and Miracles QCO code is 21063.
Step 3. Laugh maniacally while swimming in a vat of all your cash!
How do I donate?
Easy! There are a lot of ways and you can see which option works best for you >here<.
How much can I contribute to get this tax credit?
There is no minimum amount that must be contributed to qualify, which is great because every little bit you are able to share makes a BIG difference at our Ranch. Those filing their taxes as ‘married, filing jointly’ are allowed to receive a tax credit up to $800!! That means Manes and Miracles could have $800 more that we can do wonderful things with, and you get $800 more back in your taxes! Those who file as single, heads of household, or married, filing separate can get their donation back up to $400!
What is the difference between a tax CREDIT and a tax DEDUCTION?
Great question! A donation made to any 501(c)(3) non-profit organization qualifies for a tax DEDUCTION. This reduces the amount of your income that the state will be taxing. So if you grossed $100,000 dollars, but made a $400 donation to a non-QCO non-profit, then Arizona will only tax you on $99,600 worth of income. Good, but we can do better! Helping Manes and Miracles will get you a tax CREDIT, which means Arizona acts as though you already paid that amount in taxes! This is a significantly more beneficial situation for most every tax payer!
What are the deadlines for making a donation?
You, kind friend, can make your donation count all the way up until April 15th of the following year! A contribution made on April 14th of 2019 can count as a tax credit toward EITHER your 2018 OR 2019 state taxes. Many generous friends figure out just how much the state is wanting to keep in taxes and will send exactly that amount to Manes and Miracles, then finish filling out their taxes and get that much right back through their refund. Win/win!
What if I OWED Arizona taxes this year?
Great news! If you ended up owing taxes, you can just send that amount to Manes and Miracles! Or, send a little extra and get that difference back! Say you owed Arizona $200 in taxes. Well, if you were filing ‘married, filing jointly’, you could send Manes and Miracles $800, and Arizona would now owe you $600! Isn’t this amazing??
What if I donated more than I ended up owing the state?
First of all, thanks! Secondly, don’t fret! That extra amount can rollover towards the next year for up to 5 years! So, if you really wanted to make a difference and gifted Manes and Miracles $800, but only ended owing Arizona $700, then you would get that $700 back, and the next year you would already have a credit of $100.
What if I already filed my taxes, but wish I had redirected my tax money to Manes and Miracles?
No problem… well, just a tiny inconvenience. You can make a gift to Manes and Miracles before April 15th, then file an amendment to your taxes. It’s that easy! Just fill out Arizona Form 140X (found Here), and submit it using the enclosed instructions. Minor inconvenience, but it means more money for you, and many more miracles for us!
If I make a contribution to Manes and Miracles, are there benefits on my federal taxes?
Yup! While there is no Qualified Charitable Organization program federally, your contribution still qualifies for a federal tax credit. Just one more way your kindness gets more than warm fuzzies in return!
I like to help a local foster care program as well. Can I donate to more than one QCO and still qualify for this tax credit?
Absolutely! Arizona knows how vitally important your contributions are to the many organizations you care about and has made it possible to donate to multiple QCO’s, or QCFO’s, or schools. It will require a little more research on your part, as each of these qualify for tax credits, but may have different max contribution amounts. Please consult your tax professional for more information.
I can’t swing $800 in one shot! Any recommendations?
We can appreciate that not everyone has that much to part with readily. Fortunately, we have some suggestions.
Maybe set up a monthly recurring contribution to come out right after your paycheck? $60 a month (only about $2 a day!) is much easier to part with, and it will all be coming right back!
Or, you can send over a little bit here and there when you are able throughout the year. Remember, it doesn’t need to be done in just ONE contribution and it doesn’t have to be the full $400 or $800!
Or, did you get a refund back already? What a smart move to use some of that refund to invest in an even bigger refund for the next year!
Consider working out your tax return until you are able to calculate just how much Arizona will be requiring in taxes from you, then send that amount to Manes and Miracles. That way you know EXACTLY how much you would have let the state keep and instead, let us do wonderful things with! For example, Brian completed his taxes and realized Arizona was intending to keep $632 in taxes for the previous year. Before submitting his tax return, he sent Manes and Miracles a donation for that amount, then informed the state of that donation through his tax return. Now, the state sends him not just what they would have sent in his return, but they also sent that $632 back to him! And, with that donation, we were able to purchase the last of the supplies needed to install arena lights! Thank you, Brian!
For additional questions, please visit https://azdor.gov/tax-credits/contributions-qcos-and-qfcos