Frequently Asked Questions
Individual Donors
Corporate Donors
What is a School Tuition Organization?
School Tuition Organizations (STOs) provide scholarships to qualifying private schools and students through donations made by individuals or corporations. The organizations that are members of this consortium are certified by the Arizona Department of Revenue to be in compliance with the Private School Tuition Tax Credit Requirements.
How are scholarships awarded and what factors are considered?
Each STO can develop their own rules when considering scholarship awards. They may consider donor recommendations that identify a specific student or school. However, one factor that MUST be considered by law is the financial circumstances of the student’s family.
May a student receive funds from more than one STO?
Yes. We encourage you to apply for all opportunities available.
When are scholarships distributed to schools?
Each STO has their own distribution schedule so please check with them to see how often they award scholarships.
How often do I need to apply for a scholarship?
Parents and guardians need to apply once a year. Please check with the STO for specific application deadlines.
How much can I donate?
For tax year 2023 married/filing jointly may donate up to a maximum of $2609, single filers may donate up to a maximum of $1307.
· Note: A taxpayer may donate up until they file their taxes, but no later than April 15, 2024 (whichever comes first) and count their donation as a tax credit for the preceding tax year.
Can I recommend a child for a scholarship?
Yes, but not all STOs accept donor recommendations. However, ACSTO and IBE do accept donor recommendations. They will be considered for scholarships, however by law donor recommendations are not guaranteed and it is up to the STO to make the final scholarship award at their discretion.
Are there other Tax Credit Opportunities?
The state of Arizona offers several other tax credit opportunities. There are also the public school extracurricular, charitable organizations (working poor), foster care, and military relief fund tax credit available. A taxpayer may donate to as many of the various tax credit programs as long as they have the state tax liability to do so. More information is available at https://www.azdor.gov/.
What is the statewide donation cap?
The 2019-2020 Corporate Low-Income cap is $106,993,207 million.
Who can donate?
C Corporations – donate up to your state income tax liability for the given tax year without exceeding the statewide cap. If your corporate donation exceeds your tax liability, it can be carried forward for up to 5 years (A.R.S. § 43-1183).
S Corporations – donate up to your state income tax liability for the given tax year with a minimum donation of $5,000, and pass the tax credit on to it’s shareholders proportionately. If your corporate donation exceeds your tax liability, it can be carried forward for up to 5 years (A.R.S. § 43-1089.04).