Something to Consider for Your Stimulus Payment

Today, many Arizonans may find up to $1,200.00 per adult, and $500 per child, in their checking accounts, courtesy the Federal Government’s CARES Act. I got my wife’s and mine today.

Many of you desperately need that money, and only rue the fact that it is not more, and that there is no immediate prospect of more. But some of you are fortunate enough that you don’t really NEED that money.

If you are in that later, lucky company, then I have a suggestion: give it away.

There are so many in this country who need a lifeline – right now – and are simply not going to get it. Maybe you can be part of redressing that inequity.

Coincidentally, until April 15th – this Wednesday – you can donate up to $400 per person, or up to $800 for those filing jointly, to a qualifying charitable organization (PDF Link) of your choice here in Arizona and receive a direct credit on your Arizona state tax bill.

In short, you can give away what would otherwise be state revenue to a qualifying charitable organization of your choice, and, as a result of CARES Act stimulus payments, it won’t cost you a dime up front. You can essentially pass your stimulus payment directly to a charity and get a credit against your state taxes for doing so.

Arizona defines a Qualifying Charitable Organization (QCO) as those that “provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability.” QCO organizations are also required to spend at least half of their annual budgets on “qualified services for qualified Arizona residents.”

In short, QCOs serve some of those among us who need help the most urgently in these difficult times.

I urge you, if you are financially able, to give away all, or any part, of your stimulus payment to such charitable causes.

If your state tax bill is going to be a higher than the limit of the $800.00 QCO credit, you might also consider giving up to an additional $500.00 per individual, or $1,000.00 for those filling jointly, to a Qualifying Foster Care Organization (QFCO).

QFCOs meet all the requirements listed above for QCOs, but with one additional condition: A QFCO charity must spend at least 50% of its budget on services for children who have been placed in foster homes or child welfare agencies. There is an approved list of QFCOs for this year (PDF Link), as well.

Put your windfall to use where it will have the most impact on those who are most in need. Our Congress seems to have been structurally unable to do that effectively, but you can help fix their failure, in your own small way.

Before anyone can ask: yes, I am taking my own advice. My wife and I are fortunately in a position to give away our stimulus payments, and are doing so.