What is a “qualifying charitable organization?
A qualifying charitable organization is a tax exempt (501)(c)(3) organization or community action agency that allocates at least 50 percent of its budget to services that help welfare recipients or the working poor with their immediate basic needs. Services, which must be provided and used in Arizona, may include food, clothing, shelter, cash, health care, child care, job placement and/or job training.
A qualifying charitable organization is a charitable organization that is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901. Further, the organization must spend at least fifty percent of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits or to Arizona resident low-income households or to chronically ill or physically disabled children who are Arizona residents.
