Arizona small businesses can make big impact on education

According to the Arizona Commerce Authority, our state has more than 550,000 small businesses that employ roughly 44% of the state’s private workforce. Our state’s economy and its vitality are very directly correlated to these small and midsize businesses. While many owners of these businesses find ways to give back to the communities they live and work in, they have an opportunity they may not know about to make huge, lasting impacts on one of the most important causes of all. A child’s education.

Recently, the Arizona Department of Revenue released the 2023-24 Arizona corporate tuition tax credit program cap at $158 million. For those not in the know, this program allows S- and C-corps businesses of all sizes to donate their Arizona tax liabilities to support families across the state, specifically those under financial hardship or who have children with developmental disabilities, find an education home that best suits their needs. While strides are being made to continually improve our public education system, the reality is that some children just need extra resources and a different environment to thrive.

Small business owners across the state have the power to make a difference by supporting the CTTC, all to the benefit of their bottom line. Donations must be a minimum of $5,000, which may not seem like much, but could fund full or partial scholarships for one or two children in Arizona. So, through the simple act of contributing your tax liabilities to the CTTC through a school tuition organization like Academic Opportunity of Arizona, you can make a lasting impact on the education journey of these children and their families.

Like other tax credit programs, donors will receive a dollar-for-dollar refund. Taking part in this program quite literally makes sense and cents. Many in the business community, and specifically in the small business sector, aren’t aware of this program, but by doing some homework and working with your CPA, you can enhance the health of your bottom line and while providing students with developmental disabilities an opportunity to attend a school that has the resources they need to succeed.

Beyond the financial benefits to small businesses and corporations, it is the stories we hear from the parents that makes this joint effort between the private sector and school tuition organizations worth it. In a state with scarce education funding, students with developmental disabilities like autism can get left in the void. When we call parents to award scholarships, the sense of relief and utter joy we can hear in their voices is palpable, especially when we are able to provide full scholarships taking pressure off parents from having to submit for multiple scholarships.

Since 2013 when I founded Academic Opportunity of Arizona, we have been able to provide more than 1,200 students with the funding necessary to attend a private or specialty school, all thanks to the corporate tax tuition program and the enumerable corporations and small businesses who acted simply, but impactfully. Best of all, this process can be completed very easily. Upon commitment to a school tuition organization we (AOA) file all paperwork needed with the Arizona Department of Revenue so no additional resources have to be exhausted by the corporate donor.

This year, the Arizona Department of Revenue approval process for fiscal year 2023-24 donations opens on July 3, so if you are interested in donating, reach out to Academic Opportunity of Arizona or other school tuition organizations for more information and to start the process.

Each year, we receive more than 1,200 applications for funding, and while we have been able to gift nearly $10 million in scholarships over the last decade, there are still countless students that go unfunded and are at risk of falling behind. If you are a tax professional, small business owner or someone of influence at a corporation, I encourage you to look into this program. It is a turn-key way to help thousands of families across the state and set a young person on a better educational path than they might have been on before.

Chad Bays is the founder and CEO of Academic Opportunity of Arizona, a 501(c)3 non-profit school tuition organization.