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ADOR Rules & Restrictions For Donors

Donor Rules & Restrictions

The statutes governing Arizona’s tax credit programs for individuals allow donor recommendations. APSTO welcomes donor recommendations and considers them a priority when awarding scholarships. Although the program regulations allow donor recommendations, there are some rules governing this giving scenario that you should be aware of.

“As described by the State of Arizona, “A school tuition organization cannot award, restrict, or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.”

To claim your tax credit, it is important you understand the two following rules:

  • Parent Contributions Recommending their Student is Strictly Prohibited: A parent or guardian may NOT make a tax credit donation recommending their own child. In divorce situations, this restriction includes the non-custodial parent even if the child is not being claimed as a dependent.
  • Donation Swapping is Strictly Prohibited: Parents may not organize a giving arrangement with another parent (or parents) to recommend each other’s student.

If you have additional questions in this regard, please contact us. We are always here to help.

Questions? Call 480-256-1001 or email info@APSTO.org