In an age when instant gratification is more the norm than giving back and philanthropy, the Alliance of Arizona Nonprofits is hoping to make it easier to change some of this behavior with its new Arizona Gives Giving eCard in 2021.
Giving eCards can be purchased on AZGives.org/eCards at any dollar amount, for any occasion, and at any time of the year. Purchasers (individuals or businesses) can choose to immediately “gift” the eCard to the recipient via email or send to themselves first. The eventual recipient then decides which of the nearly 1,000 Arizona nonprofit 501(c)(3) organizations featured on AZGives.org they would like to donate to using the Giving eCard code.
A Giving eCard is truly a give that keeps on giving. The dollars stay local, help nonprofits provide vital services and improve our economy. The purchaser is also able to claim these dollars as a federal tax deduction or state tax credit.
Why Is Giving and Philanthropy Needed So Much Right Now?
A poll conducted last summer by the Alliance of Arizona Nonprofits indicated that total loss of revenue of responding nonprofits was nearly $53 million and that by year end nonprofits anticipated a $433 million overall loss. The ongoing pandemic has, of course, cut revenues but also reduced the number of available volunteers and donors for local nonprofits. This is especially problematic when so many nonprofits face increased demand for services.
In addition, the 2018 federal tax deduction changes for charitable giving have negatively impacted charitable giving. While still not back to original levels, the 2020 CARES Act did increase tax-donation benefits for 2020 through two new federal charitable giving guidelines:
- Universal Deduction for Donations up to $300: For the more than 90% of taxpayers who no longer itemize their charitable giving, the CARES Act allows individual taxpayers to deduct donations to nonprofits of up to $300 on their 2020 federal tax return, even if they take the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.
- Raising the Charitable Giving Deduction Cap: For donors who qualify to itemize deductions, and therefore directly write off gifts to nonprofits, the current deduction cap is 60% of adjusted gross income. Corporations are able to deduct charitable donations up to 10% of taxable income. The 60% of AGI limit is for giving to 501(c)(3) public charities. The deductibility of gifts to 501(c)(3) private foundations is capped at 30% and was not included in this legislation. The CARES Act lifts these caps to 100% for individuals and joint filers, while corporations will see their cap lifted to 25% for 2020.
“These are truly substantial changes to the tax treatment of donations,” says Alliance of Arizona Nonprofits CEO Kristen Merrifield. “Our goal is to continue spreading this message to encourage more individuals and businesses to take advantage of these changes that benefit everyone.”
The State of Arizona provides two separate tax credits for individuals who make contributions to charitable organizations: one for donations to Qualifying Charitable Organizations (QCO) and the second for donations to Qualifying Foster Care Charitable Organizations (QFCO). Individuals making cash donations to these charities may claim these tax credits on their Arizona Personal Income Tax returns.
Arizona Gives Day
While Giving eCards are available to gift any time of the year, participating nonprofits could really use your support during our day of statewide online giving, Arizona Gives Day, on April 6, 2021.
- There are several ways for businesses to get involved in Arizona Gives Day:
- Partner with a participating nonprofit and create a dedicated fundraising page for your staff and/or clients to give.
- Partner with a participating nonprofit to provide a matching or challenge gift to help them drive additional giving.
- Support the Arizona Gives program directly and receive branding exposure for your community support.
- Work with Arizona Gives to create a nonprofit cash incentive prize pool.
For more information about Giving eCards or Arizona Gives Day, please contact Jennifer Purcell at Alliance of Arizona Nonprofits.
The Alliance of Arizona Nonprofits is a statewide trusted resource and advocate for the nonprofit community. The Alliance’s mission is to unite, strengthen and advance Arizona’s nonprofit sector and is comprised of more than 1,000 members — both nonprofits and those in the community who support them — across the state. Since 2004, the organization has been dedicated to furthering the common interests of Arizona’s nonprofit community and envisions an Arizona where all nonprofits are valued, empowered and thriving, with support from grassroots efforts like Arizona Gives Day. For more information, visit www.arizonanonprofits.org.
Jennifer Purcell is SVP for Alliance of Arizona Nonprofits
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