Donation FAQ

Are donations to Khalsa School tax deductible?

Yes, any donation you make to Khalsa Family Services, Inc, Khalsa School or Khalsa Montessori School is deductible on both your federal tax return and your state tax return if you qualify to itemize your deductions.

Does Khalsa School participate in the Arizona School Tax Credit Program? How much of a credit am I eligible for?

Donations that are made to the charter school’s extracurricular activities fund are eligible for a tax credit on your state tax return up to the current year’s limit ($200 for individuals and $400 for married-filing-jointly for tax year 2009). There are additional tax forms that you will need to submit with your tax return to claim the credit. If you’ve donated more than you owe to the state, you may carry over the remaining amount of the unused credit to the next tax year. Contact your tax advisor for more information.

I paid fees for my child’s extracurricular activities. Can I get a credit for that?

Yes, any extracurricular program fees you pay on behalf of your dependent child are eligible for a state tax credit up to the current year’s limit.`

Can I give more than the amount I am eligible for as a tax credit?

Definitely! Any donation you make in excess of the state tax credit limit may be deducted as an itemized deduction on your state tax return. The total amount of the donation you make is always deductible as an itemized deduction on your federal tax return. For example, if you are single and donate $1,000, you could claim $1,000 as an itemized deduction on your federal taxes, $200 as a credit on your state taxes, and $800 as an itemized deduction on your state taxes.

How do I make a donation? What forms of payment do you accept?

You can donate by cash, check, credit card, or through a direct withdrawal from your checking or savings account. You may also donate online through PayPal on our website.

Can my donation be spread out over several months?

Absolutely! Just complete a donation form, and we can automatically charge your credit card or your bank account for any monthly amount you choose. You will receive a receipt after each payment is processed. Donation forms are available in the office.

What is the donation money used for?

Donations that are made to the charter school’s extracurricular activities fund are used to support art, music, violin, field trips and other extracurricular activities for the students. You may choose to direct your donation to a specific fund or program. Donations that are not designated for a specific program are used to fund our general operations – they help pay for classroom supplies, Montessori materials and all the other expenses that go into operating a school.

Does my donation for school supplies qualify for a tax credit?

The only donation to Khalsa that qualifies for a state tax credit is one made for extracurricular activities. The state offers additional tax credits for other types of donations to other types of organizations. You can see the entire list on the Arizona Department of Revenue’s website at www.azdor.gov.

Do KCO donations count towards a state tax credit?

The KCO is a separate legal entity, and is not part of the charter school. Donations you make to the KCO are deductible on your tax returns as itemized deductions, but do not qualify for a state tax credit.

Can I designate my donation for a specific program?

Certainly! Khalsa accepts donations for several different specific programs including extracurricular activities, Model UN, school supplies, and general operating expenses. The Khalsa Community Organization (KCO) also accepts donations for programs such as Spanish and the Teacher Enrichment Fund.

Can I designate my donation for a specific student’s benefit?

Yes, you may designate your donation for any child you wish.

My business would like to donate to the school. Will they get a state tax credit?

State tax credits for contributions made to extracurricular activities for public schools are available only to individuals. Businesses may make tax-deductible contributions as a part of their charitable giving plan. Some employers offer matching funds for tax credit and other charitable contributions made by their employees. Please ask your employer if they have a matching gift program.

Where can I get more information on this and other school tax credits?

See the Arizona Department of Revenue’s Publication 707 – School Tax Credits. You can find it online atwww.azdor.gov/brochure/707.pdf.