AAA Scholarship Foundation

Arizona Corporate Income Tax Credit Scholarship Program

Needs Summary

AAA Scholarship Foundation, Inc. (AAA) provides banks with an innovative CRA investment opportunity at no cost to the corporation. State-mandated tax credit scholarship programs allow a corporation to redirect their state corporate taxes to AAA so that we can fund scholarships for low-income and special needs children to attend the school that best meets their individual learning needs. Participating corporations in Arizona receive a dollar-for-dollar tax credit for their redirection. Examiners at the bank regulatory agencies have approved dollars transferred to fund scholarships through this program to qualify for positive consideration under the CRA investment test.

Need Category

Donation (Financial)

Support Needed

$1-$107 million

Date Needed

Jun 30, 2020

Details of Need

The Arizona Corporate Income Tax Credit Scholarship Program allows any company that pays corporate income taxes in Arizona to redirect up to 100 of that liability to the AAA Scholarship Foundation in exchange for a dollar-for-dollar tax credit. By redirecting your tax credits, you will give at-risk students an increased chance at a brighter future while also receiving the satisfaction that you are utilizing your tax dollars toward building a better-educated workforce, and earning CRA credits. For low-income children, who are often several grade levels behind their peers, these programs are a lifeline for paving a pathway out of poverty. With over 20 years of hands-on experience successfully administering tax credit scholarship programs, you can rest assured that your participation will be effective, easy and impactful.

Community Impact

With financial support from banks, the AAA Scholarship Foundation will be able to provide economic and other assistance to economically-disadvantaged families to enable them to select the best schools for their children. AAA Scholarship Foundation provides companies with the convenience and efficiency of a single-solution for participating in multiple state tax credit scholarship programs and the ability to receive CRA credits at no cost to the corporation.

Who Will Benefit

The typical AAA Scholarship student is an ethnic minority living with a struggling single parent/caregiver in a high crime community. More than 90.6 percent of AAA scholarships are distributed to children at or below 200 percent of poverty. Many children are either below grade level, failing at their previous school or both when they receive a scholarship. Parents, who find their children in these circumstances and care about their future, look for viable options. They seek an atmosphere that challenges their child and will reverse inadequate learning, social patterns and the potential lifelong negative impact.

% LMI

50%

What Area Will Benefit

Arizona

CRA Analysis

Lending

N/A

Investment

Yes

Service

N/A

For banks, there is an added benefit of participating in the AAA’s tax credit scholarship program – the bank regulatory examination agencies have approved dollars transferred to fund scholarships through this program as qualified for positive consideration under the CRA investment test!

Each of the financial institutions enrolled in AAA Scholarship Foundation’s tax credit scholarship program that have been examined have received CRA investment credit as a qualified charitable contribution. In addition, a bank’s contributions to the program can be allocated the its specific assessment areas to ensure that the investment services the bank’s geographic footprint.

Our program meets the community development requirements as its purpose is to serve low-income children. The families participating in the program have on average four family members with an average family income of $23,559 and 60% of our families are single parent homes.

	Focus Group	LMI Children & Families, Disabled Children
	Affordable Housing	N/A
	Financial Literacy	N/A
	Financial Services	N/A
	Technical Assistance	N/A
	Revitalize or Stabilize	N/A
	Healthy Community	N/A

Metropolitan Statistical Area	Available Statewide
LMI Geography	Available Statewide
Counties Affected	Available Statewide
Zip Codes Affected	Available Statewide
Census Tracts	Available Statewide
CRA Designations	Available Statewide

N/A

Population	6392017
% Minority	27
% Below Poverty	17.7

Area Median Income	51340
% Unemployed	8.0

Total Households	2380990
% Owner-Occupied	66.0
% Vacant	16.3

AAA Scholarship Foundation

To provide economic and other assistance to economically-disadvantaged families and families of disabled students to enable them to select the best schools for their children. For banks, there is the added benefit of positive consideration under the CRA investment test.

Partner Type

Nonprofit

CRA Entity

None

NTEE Code

B21 - Educational Institutions

Clients Served

Economically-disadvantaged families and families of disabled students, primarily low-income.

Service Area

Alabama, Arizona, Florida, Georgia, Nevada & Pennsylvania

Description

Since 2010, the AAA Scholarship Foundation has passionately advocated for the underserved, under-represented and academically disadvantaged members of our communities. AAA administers innovative state-mandated income-based tax credit scholarship programs that fund education scholarships for low-income children and children with disabilities in six states. Qualifying parents can use these scholarships to send their children to private schools that best meet their child's needs. A bank can contribute to change the future of children in need through tax credit redirection to empower education alternatives for everyone.