INTRO…
Goodworks is an approved site to receive Arizona tax credits due to our status as a registered 501(c)3 with the federal government and approval by our state as a qualifying charitable organization.
Arizona allows taxpayers to direct a portion of the money they pay into the state budget to specific non-profit organizations. We are one of those organizations. If you want to direct a portion of the money you already pay for taxes to go to Goodworks instead, all you have to do is make a donation, fill out our Donation Form, and file your taxes. When you file, you will be eligible to receive every dollar you donate back to you.
Up to 938 dollars for married couples and 470 dollars for individual filers.
FAQs
01 What does this mean for me?
Any donation* that you make toward our agency will be credited to you on your tax return (essentially refunded, up to 841/421). You get the credit, but the state ultimately is the donor. Woah.
02 But why would they do that?
From what we can tell, this is Arizona’s way of allowing non-profit organizations who have proven themselves to be a benefit to our residents to continue investing in you. Instead of having to set up a detailed budget in this area, they let us decide where to direct this part of our taxes. Pretty cool.
03 So what happens if I don’t do this?
You will just pay your taxes as normal and the government will choose how to divy it up. It does not change the total you pay in taxes either way.
04 I’m in. What are my options?
a. Sponsor a specific client. This can be someone you know and love or someone you just met. It can be your cousin or your hairdresser or your worst enemy. Just make sure you let us know who you would like to sponsor and we will do our best to make it happen. Donations pointed at specific clients will be apportioned appropriately based on tax laws*, definitions of charitable organizations, and associated fees. Give us a call if you want to know more and we can help.
b. Support Goodworks generally. We are able to offer very reduced counseling because of our donor base, and we are hoping that tax credit donations will increase this base and thus increase the number of people to whom we can offer therapy. Many people we counsel do not have anyone the can ask to sponsor them, so donating to our overall funding would help the underserved people that our staff has come to know and love.
05. How do I actually do this?
You can donate via Zelle, check, or credit card (paypal). Choose the way you would like to donate, make the donation, and then fill out the donation form on the “donate” tab.
*The nitty gritty.
Goodworks now qualifies as a charitable organization that can receive Arizona Tax Donations as a QCO. This is a dollar for dollar tax credit, meaning that you tell the state you’ve already paid some of your taxes to Goodworks, your gift supports clients in need, and you get a FULL refund on your taxes when you file (up to 938 dollars for couples and 470 for individuals). For further information on what this is, see this website. https://azdor.gov/tax-credits
When you fill out your taxes, this entire amount will come back to you as a credit. If you were already getting a refund, it will just be even bigger. It is an amazing way to fund the organizations that the state deems worthy of our tax dollars. If you choose to donate more than the indicated amounts or do not reside in Arizona, your donation can be written off as a tax deduction and still go to people in need, and we would be beyond grateful! Here are the steps to making this happen.
Go to Goodworkscounseling.com and click “donate”. There you will see the 3 ways we can accept donations- cash/ check, Zelle, or PayPal.
Complete the donation form at goodworkscounseling.com/donate so that we can get a receipt letter to you OR fill out and mail in the form below if you do not want to deal with tech!
Complete Tax Form 321 when you file your taxes. (We can help you with this if you have any questions).
Get all of your money back (up to $938 for couples and $470 for individuals).
Please let us know if you have questions. Specifics on how to donate and how to point your tax dollars to a specific client can be seen below.
To direct a portion of your state income tax toward Goodworks, send a check to 2950 S Alma School Rd Ste 10 Mesa, AZ 85210, make it out to Goodworks Counseling and write “QCO donation” on the memo. You can also send a Zelle payment to goodworks1@juno.com. Or you can go to goodworkscounseling.com and go to the “donate” page there if you would like to donate with a card. Make sure you let a team member know what you chose so we can get the paperwork filed for the credit to come back to you. Checks or Zelle transfers are preferred as Goodworks pays a processing fee for all card donations, but of course cards are still very appreciated! After the donation has been received, Goodworks will send a letter for evidence of donation that will be used on AZ Tax Form 321 to receive the refund. Read below for common questions.
If you're an Arizona taxpayer, you can make a donation to Goodworks and receive a dollar-for-dollar state tax credit in return! But what does that mean?
At the end of the year, if you typically get a refund, you’ll get a bigger refund. If you typically owe, you’ll owe less.
This is because a tax credit is different than a normal charitable deduction—rather than reducing your taxable income, it directly reduces your state tax liability (a.k.a. the tax you pay). For example, if your tax liability (obligation) is $1,000, and you make a $750 donation, your liability will be reduced by $750—meaning that your tax liability will only be $250! Keep in mind, if you usually receive a refund, a tax credit makes it bigger—it is to your advantage to participate in this program.
In addition, you can make a donation all the way up until Tax Day (your donation must be made prior to filing your taxes—if you are filing an extension your donation needs to be made by Tax Day), and still claim the credit for the previous tax year!
Tax Day Deadline
Tax credit donations can be mailed or submitted to Goodworks prior to filing taxes, but no later than Tax Day (whichever comes first), and still be eligible for the tax credit for the previous tax year. For donations made between January 1 and Tax Day, it is up to the donor to determine if the tax credit will be claimed for the previous or current tax year. If claiming for the prior year, donations must be postmarked or submitted online prior to midnight on Tax Day—even if you plan on filing an extension.
The maximum credit that can be claimed on the 2024 Arizona return for donations made to QCO's is $470 for single, married filing separate or head of household taxpayers, and $938 for married filing joint taxpayers.
NOTE: The maximum is either the above amount, or your total tax liability, whichever is less. If you donate more than your total liability, Arizona law allows you to carry the excess credit (up to the maximum) forward for use in up to five consecutive future tax years. The tax forms you use to claim the credit (Arizona Forms 321) are also used to track any carryover.
Much of this information has been taken directly from actso.org. Anything added for Goodworks specifically has been explicitly noted by bold and italicized script.
Link to the state’s explanation of QCOs and tax credits: QCOs and QFCOs
Link to see Goodworks as a qualifying charitable organization (QCO) go to page 8 on this list: Goodworks QCO status