FAQ's

The information below is not intended as legal or tax advice. Please consult your legal or tax professional. For more information contact the Arizona Department of Revenue at 800-352-4090 or 602-255-3381.

For Individual Donors

What is the private school tuition tax credit?

Arizona law allows a dollar-for-dollar state income tax credit for donations to the Brophy Community Foundation, an Arizona Department of Revenue certified school tuition organization (defined below). Your donation will give students, with a verified financial need, tuition assistance so they can afford private school education.

How much can I donate?

For 2017, you can donate up to $2,177 as a married couple filing jointly, $1,089 as a single filer, or your AZ income tax liability, whichever is less.
  • Married: $1,092 (Original) + $1,085 (Overflow/PLUS) = $2,177
  • Single: $546 (Original) + $543 (Overflow/PLUS) = $1,089

The maximum tax credit amounts are adjusted annually based on increases of the Metropolitan Phoenix Consumer Price Index (CPI) of the preceding year. You must first donate the maximum for the Original tax credit before anything can count toward the Overflow/PLUS tax credit. If you have no Arizona income tax liability, you cannot receive a tax credit. However, we are a qualified non-profit for charitable donations. Federal Identification Number is 86-0929111.

What do I have to do to qualify for this credit?

You must make a cash contribution to the Brophy Community Foundation by April 15th of the year immediately following tax year you are filing. Checks, Visa, MasterCard, American Express, Discover and payment plans accepted. You may also donate online.

How is a tax credit different from a deduction?

A tax credit is significantly more beneficial than a deduction. A tax credit reduces your Arizona taxes dollar-for-dollar while a deduction reduces the taxable income upon which taxes are calculated.

Is my donation eligible for a federal deduction?

Yes, Brophy Community Foundation is a federally tax exempt 501(c)(3) charitable organization. For federal tax purposes, any deduction must be claimed for the tax year in which the donation was made; the April 15 deadline does not apply. You should consult your tax adviser for specific tax advice concerning deductibility for your situation.

Can I also claim my donation as state deduction?

No, the amount claimed as a tax credit on your Arizona State tax return cannot be claimed as an Arizona income tax deduction.

I have my state taxes withheld from my paycheck. Can I still participate?

Yes, if you have paid your taxes and contribute to the Brophy Community Foundation, you will receive a credit from the Arizona Department of Revenue in and for the amount you have overpaid. The credit may carry forward up to five years.

May I designate my donation for a particular student?

No, all donations are placed in a general fund and distributed to students based on verified financial need. Brophy Community Foundation has never accepted donor designated contributions. Per Arizona law, 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.

How do I claim my tax credit?

The Brophy Community Foundation will send you a letter of acknowledgment for your tax records. The credit may be claimed on the designated lines of your Arizona individual income tax return and by completing forms 301 and 323 and 348.

Do I need to itemize my taxes in order to participate?

No, you do not need to itemize. Every Arizona income taxpayer can claim the tax credit by filing forms 301 and 323 and 348.

How do I determine what my tax liability is?

Review your state tax return from last year. If your income has not changed much, you can get an idea of what your state tax liability will be for the current year. You should also check with your tax advisor.

Can my employer match my donation?

Yes, the Brophy Community Foundation qualifies for employer matching funds programs. You can double your contribution by checking with your employer.

How does the Brophy Community Foundation distribute its funds?

Brophy Community Foundation contracts with an independent service, FACTS, that processes and reviews all financial aid applications, including tax returns and W-2s and calculates financial need of each family. Awards are based on verified financial need and distributed to students attending Brophy College Prep, Loyola Academy and 32 other schools statewide.

How can I apply for tuition assistance?

Simply provide all requested documentation and return by due date. Click on our link "Apply for Financial Aid" where you will be able to apply online with FACTS. If you have questions, contact Genny Matteucci at 602-264-5291 ext. 6500 or gmatteucci@brophyprep.org

What is a school tuition organization?

A school tuition organization is a charitable 501(c)(3) organization that must:
  1. allocate at least 90% of its annual contributions to scholarships;
  2. not limit the availability of scholarships to students of one school;
  3. allow ADOR to verify that the scholarships issued are awarded to students attending a qualified school;
  4. not knowingly collude with any other STO to circumvent the limits of the low-income corporate scholarship;
  5. include on the organization’s website, if one exists, the percentage and total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year to (a) students whose family income is up to 185% of poverty level and (b) students whose family income is greater than 185% of poverty level but not more than 342.25% of poverty level;
  6. not award scholarships to students who are simultaneously enrolled in a district school or charter school and a qualified school; and
  7. follow all other statutory requirements in A.R.S. § 43-1183 or Title 43, Chapter 15.

What constitutes a qualified school?

Qualified school means a preschool that offers services to students with disabilities, nongovernmental primary or secondary school that is located in Arizona and that does not discriminate based on race, color, disability, familial status or national origin. All teaching staff and personnel that have unsupervised contact with students are required to be fingerprinted. Qualified school does not include a charter school or any program operated by a charter school.

Is there a public school tax credit too?

Yes, you may make an additional $400/$200 donation as married/single taxpayers toward public school extracurricular activities and character development, and claim it as a tax credit. Public school donations are made directly to the public school, not to Brophy Community Foundation. Public school tax credit donation deadline is also April 15th of the year immediately following tax year you are filing. You can donate toward both the public and the private school tax credits, but the combination should still be equal to or less than your personal tax liability.

Are there other tax credits I should consider?

Yes, additional individual income tax credits are available for contributions to Qualifying Charitable Organizations that provide assistance to residents of Arizona who receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability. In addition, a Qualifying Charitable Organization may be considered a Qualifying Foster Care Charitable Organization if it meets additional criteria in serving qualified individuals. For more information about these two additional credits, visit the Arizona Department of Revenue website by clicking here.

For Corporate Donors

What is the low income corporate tax credit?

Arizona law allows a dollar-for-dollar state income tax credit for “C” & “S” corporations and insurance companies that pay a premium tax for contributions to the Brophy Community Foundation, an Arizona Department of Revenue certified school tuition organization. These donations give students, with a verified financial need, tuition assistance so they can afford private school education at an Arizona qualified school.

Is there any limit to the amount of money corporations can donate in total in a fiscal year?

Yes. The original law set a limit of $10 million for corporate tax credit donations and allowed a 20% increase in this amount each fiscal year. The corporate tax credit donation limitation for fiscal year 2016/17 is $61,917,365. This cap was met in less than one day, July 1, 2016. The corporate tax credit donation limitation for fiscal year 2017/18 will be $74,300,838. Brophy Community Foundation will submit applications to the Arizona Department of Revenue on July 1, 2017.

Is there any limit to the amount of money a single corporation can donate for a tax credit?

Yes and no. There is a limit to how much corporations can donate in total each fiscal year for a tax credit. However, one corporation could donate the entire tax credit amount available.

Is there a minimum limit to corporate tax credit donations?

There is a minimum aggregate contribution of $5000 for “S” corporations only.

Can a taxpayer donate stock to Brophy Community Foundation and receive a tax credit?

No. The taxpayer may donate stock to the BCF but the donation is not eligible for the tax credit since it is not considered a cash donation.

What is the procedure for making a corporate/insurance tax credit donation?

Brophy Community Foundation (BCF) handles all the paperwork required by the Arizona Department of Revenue (ADOR}.
  1. Contact Dawn Kennedy at 602-264-5291 x6521 or dkennedy@brophyprep.org to initiate the process before July 1st as the cap is reached quickly. Fiscal year 2016/17 cap was consumed in less than one day.
  2. The application for approval must be submitted by BCF to the ADOR.
  3. If the program cap has not been met, ADOR approves the request within 20 days and notifies BCF.
  4. BCF will immediately notify corporate donor of approval.
  5. The corporation has 20 days from the date of approval by ADOR to make the contribution payable to BCF.
  6. The corporation takes the tax credit on its tax return, but may carry any unused credit forward for up to five years after the contribution was made.
  7. To claim the credit, the corporation lists the credit on the standard 120 form, and files a 335 form attached to the return. The corporation may take either the federal deduction or the Arizona state credit, but not both.

How does the Brophy Community Foundation distribute its funds?

Brophy Community Foundation contracts with an independent service, FACTS, that processes and reviews all financial aid applications, including tax returns and W-2s, and calculates financial need of each family. Awards are based on verified financial need and distributed to students attending Brophy College Prep, Loyola Academy and 32 other schools statewide.

What is a school tuition organization?

A school tuition organization is a charitable 501(c)(3) organization that must:
  1. allocate at least 90% of its annual contributions to scholarships;
  2. not limit the availability of scholarships to students of one school;
  3. allow ADOR to verify that the scholarships issued are awarded to students attending a qualified school;
  4. not knowingly collude with any other STO to circumvent the limits of the low-income corporate scholarship;
  5. include on the organization’s website, if one exists, the percentage and total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year to (a) students whose family income is up to 185% of poverty level and (b) students whose family income is greater than 185% of poverty level but not more than 342.25% of poverty level;
  6. not award scholarships to students who are simultaneously enrolled in a district school or charter school and a qualified school; and
  7. follow all other statutory requirements in A.R.S. § 43-1183 or Title 43, Chapter 15.

What constitutes a qualified school?

Qualified school means a preschool that offers services to students with disabilities, nongovernmental primary or secondary school that is located in Arizona and that does not discriminate based on race, color, disability, familial status or national origin. All teaching staff and personnel that have unsupervised contact with students are required to be fingerprinted. Qualified school does not include a charter school or any program operated by a charter school.

For Applicants

Do I need to apply every year for tuition assistance from Brophy Community Foundation (BCF)?

Yes, all awards are based on verified financial need. A student must have a current and complete application and must be enrolled at a qualified private school before BCF can consider any awards for the student.

How do I apply?

Applying online is the required method for submitting your application. BCF employs FACTS, an independent financial aid assessment company, to confidentially evaluate each application and supporting tax documents (tax returns, W-2s and other relevant income information).

Are Spanish applications available? 

Yes. Spanish applications are available online.

When can I apply?

Online applications will be available online February 1st.

What factors are considered for making a tuition aid award?

All tuition aid awards are based on verified financial need.

Is there a deadline?

Yes, applications and all supporting documents must be complete by April 15th.

Is there a fee to apply?

Yes. The fee is $15 before April 15th. The fee is $30 after April 15th.

What documentation do I need to apply?

  1. Submitted online application Application Link
  2. Copies of your 2016 tax forms including all supporting tax schedules
  3. Copies of your 2016 W-2 form for both you and your spouse
  4. Copies of supporting documentation for Social Security Income, Welfare, Child Support, Food Stamps, Workers’ Compensation, or any other miscellaneous income

Should I mail or fax copies of my application and supporting documentation to BCF?

No. Do not send your application or supporting tax/income documents to BCF. Your application and all supporting tax/income documentation must be submitted to FACTS.

Are there any other forms I need to complete my application?

Yes, if your student is transferring from a public school or has previously received school tuition organization (STO) funding, please fill out and return the following forms that apply to your circumstance:
  1. Students transferring from a public to private school must complete and return to BCF this Public School Attendance Verification form.
  2. If student has ever received tax credit tuition aid from another STO, please complete and return to BCF this Previous Scholarship Verification form.

I have applied to BCF in previous years. May I use my FACTS identification number?

Yes. Using your FACTS identification number will simplify your steps.

Can students receive Empowerment Scholarship Account (ESA) money from the Arizona Department of Education, and also receive funds from an STO?

No. A student that receives ESA money cannot receive any funds from an STO for that same academic year.

Can parents apply for the ESA program during the academic year and sign an ESA contract for their child who already received BCF/STO tuition aid?

The ESA statute (A.R.S. §15-2402(B)(3)) requires that while a parent has a contract with the ESA program, at no time can a student receive both ESA and BCF/STO money. This means that if the parent applies for the ESA program during the academic year and signs an ESA contract, any and all BCF/STO tuition aid money paid to the private school for that academic year must be refunded to the BCF/STO regardless of when the ESA contract was signed during the academic year. For example, a parent applies for and receives BCF/STO tuition aid in spring 2016 for the upcoming 2016/17 academic year and the BCF/STO sends the tuition aid money to the private school in the spring. In October of the school year the parent decides to apply for ESA funding and signs a contract with the ESA program. Even though the contract was signed in October it applies retroactively to the beginning of the academic year. Therefore the student is no longer eligible for any BCF/STO money for that academic year and the private school must refund the full BCF/STO tuition aid that was paid in the spring.

What happens if a parent terminates the ESA contract during the academic year?

If the parent terminates the ESA contract during the academic year there is no conflict for the student to receive BCF/STO tuition aid for the remainder of the academic year after the termination of the contract. Parents can request a letter from the ESA program stating that their ESA account is closed as of a certain date which then can be provided to the BCF/STO who may choose to award tuition aid to the student for the remainder of the academic year.

May I designate or recommend a student to receive my tax credit contribution?

No, Brophy Community Foundation has never accepted donor designated/recommended contributions. In furtherance of our mission and legislative intent of tax credit laws, all funds are distributed based on verified financial need. All applicants must annually complete FACTS financial aid application supported by Arizona tax returns and W-2. Arizona law now requires the following notice on all STO materials and websites.

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.

May A Student Receive Funds From More Than One STO?

Yes. However schools can only accept tuition aid equal to the student's tuition that is due for the current school year. Any overage must be returned to the school tuition organization (STO).

For Schools

What is a qualified school?

Qualified school means a preschool that offers services to students with disabilities, nongovernmental primary or secondary school that is located in Arizona and that does not discriminate based on race, color, disability, familial status or national origin. All teaching staff and personnel that have unsupervised contact with students are required to be fingerprinted. Qualified school does not include a charter school or any program operated by a charter school.

What school costs can Brophy Community Foundation (BCF) cover?

The only cost BCF may cover is tuition. It may not be used for any other expenses or fees (such as application fees, tutoring).

Can schools award tax credit tuition aid?

No, awarding tuition aid is the responsibility of the BCF, a certified school tuition organization (STO). Statutory requirements governing the granting of tuition aid apply to STOs, not schools. Schools may recommend students to the BCF for tuition aid, however, the criteria for awarding tuition aid and the actual selection of recipients is determined by BCF.

Can a student who is receiving Empowerment Scholarship Account (ESA) money from the Arizona Department of Education also receive funds from an STO?

No. A student that receives ESA money cannot receive any funds from an STO for that same academic year.

What if a parent applies for the ESA program during the academic year and signs an ESA contract and has already received BCF/STO tuition aid?

The ESA statute (A.R.S. §15-2402(B)(3)) requires that while a parent has a contract with the ESA program, at no time can a student receive both ESA and BCF/STO money.  This means that if the parent applies for the ESA program during the academic year and signs an ESA contract, any and all BCF/STO tuition aid money paid to the private school for that academic year must be refunded to the BCF/STO regardless of when the ESA contract was signed during the academic year.

For example, a parent applies for and receives BCF/STO tuition aid in spring 2016 for the upcoming 2016/17 academic year and the BCF/STO sends the tuition aid money to the private school in the spring.  In October of the school year the parent decides to apply for ESA funding and signs a contract with the ESA program.  Even though the contract was signed in October it applies retroactively to the beginning of the academic year.  Therefore the student is no longer eligible for any BCF/STO money for that academic year and the private school must refund the full BCF/STO tuition aid that was paid in the spring.

What happens if a parent terminates the ESA contract during the academic year?

If the parent terminates the ESA contract during the academic year there is no conflict for the student to receive BCF/STO tuition aid for the remainder of the academic year after the termination of the contract.  Parents can request a letter from the ESA program stating that their ESA account is closed as of a certain date which then can be provided to the BCF/STO who may choose to award tuition aid to the student for the remainder of the academic year.

Can BCF award tuition aid for tuition that the school considers past-due?

No. Awards paid can only apply to current year tuition. As long as the school year is not over, the BCF may award a scholarship for the unpaid tuition.

Can a school apply overpayments in current academic year to past due payments of previous academic year?

No.

Can a school carryover overpayments in current academic year to the following academic year?

No. If there is an overpayment, a refund must be issued by the school to BCF/STO.  A carryover of an overpayment is not the same as BCF/STO paying in the spring for the upcoming academic year because the tuition is due at that time. 

What should a school do if the parent pays tuition for a full academic year and later receives BCF/STO tuition aid?

In this case one of two things must occur. The school must refund the tuition aid already paid by the parent back to the parent OR the school must return the amount of the tuition aid that exceeds the tuition balance to BCF/STO. The school cannot carry forward the excess tuition paid to the following school year. If the school carried forward the excess tuition paid to the following school year, it would be the school granting the scholarship for that academic year. This is not allowed.

What is the school’s responsibility when it receives multiple STO awards resulting in awards in excess of tuition for the academic year?

If the parent has already paid part of the tuition for the academic year, the school may refund that partial tuition paid to the parent. If the parent has not paid part of the tuition or if there is still excess tuition aid money for the academic year after a refund to the parent, the school must return that excess money to one or all of the STOs paying tuition aid. The amount of tuition aid paid from all STOs for one student cannot exceed the amount of tuition for that academic year.

What must a school do if BCF provides tuition assistance to a student to attend a particular school and then transfers to a different private school.

According to the law, BCF must require that students use their awards on a full-time basis. If a student leaves the school before completing an entire school year, the school must refund the unused portion of the award to BCF.

Can a student receive tuition aid to cover tuition for a summer school class?

Yes, if the summer school class is offered at a private school and the class is taken for credit towards graduation. Summer school at the elementary level is not eligible for tuition aid.

Can a student receive tuition aid to study abroad?

No. A "study" abroad program is not eligible for a scholarship since the child will not be attending a qualified school which is by definition an Arizona school.

Can students repeating a grade receive a BCF tuition aid award?

Yes.

What if a private school has included an educational offsite class or trip in the cost of tuition? Can the student’s tuition aid cover those amounts included in tuition?

If all students in the grade are required to participate in the offsite class or trip, the cost of the class can be part of tuition and be covered by the tuition aid award. The tuition aid award can only cover the cost of the class and must exclude transportation, food and lodging. If the trip is an optional activity it would normally be covered by a fee that is not part of tuition and therefore is not eligible to be covered by a scholarship.