What is CTODP?

In Arizona, we have a very unique law that allows anyone who owes income tax to the State of Arizona to redirect their payment towards tuition at the private school of their choice. You may also divide your contribution among multiple schools if desired.

This is a dollar-for-dollar tax credit program established by the state for all private schools in Arizona. As a Catholic school, NDP participates in the program through the Catholic Tuition Organization of the Diocese of Phoenix (CTODP).

The Arizona Tax Credit Law provides an opportunity for every family that owes Arizona state taxes to redirect up to $1,000 for married couples and $500 for individuals to private schools for scholarship aid. In simple terms,

You owe state income tax of $1,100
You contribute a tax credit to CTODP 1,000
$1000 goes to financial aid and you owe 100

If your tax liability is below $1,000, you can redirect the exact amount you owe to CTODP and pay NO state income tax. For example, if you owe $125, you may redirect it to the school and PAY NOTHING to the State of Arizona.

In addition to reducing or eliminating your tax obligation to the State of Arizona, you can also receive a Federal tax-deduction for your contribution to CTODP. This is a Win-Win Opportunity for you and NDP.

Please take advantage of the exceptional opportunity to help Notre Dame.
If you need additional CTODP forms, they will be in the school office and on-line at www.catholictuition.org.

Be sure to designate NDP –school code #213—as the recipient of your Arizona State Income Tax Credit.

Questions?
Call Carolyn Rock, Director of Development at (480) 634-8225.

How to Participate

By participating in the Catholic Tuition Organization of the Diocese of Phoenix (CTODP)  you will receive a dollar for dollar state income tax-credit and a federal income tax deduction and a letter acknowledging your contribution for tax purposes.  Your gift must be received by December 31, 2009.  There are a variety of ways that you can participate in this tax-credit program while investing the education of Notre Dame students. 

• Contribute by phone.  Call the Catholic Tuition Organization at 602-218-6542 to contribute with credit card.
• Mail your contribution.  Check and credit card contributions may be mailed to the Catholic Tuition Organization along with the Printable Payment Form to CTODP, PO Box 53321, Phoenix, AZ 85022
• Set up a scheduled payment plan. Print and mail the Scheduled Payment Plan form to CTODP, PO Box 53321, Phoenix, AZ  85072 or call (602)218-6542 to choose the plan that meets your needs.
• Sign up for payroll deductions.  Print and mail the Payroll Deduction Form to CTODP, PO Box 53321, Phoenix AZ 85072

Please remember to designate Notre Dame Preparatory, Code 213

For questions about CTODP, please call Carolyn Rock in the Development Office

CTODP can be contacted at (602)218-6542 or http://www.catholictuition.org

Dear Friends of Notre Dame,

In a time of great economic uncertainty, Notre Dame Prep has been blessed by a very generous gift of $520,000 from a company with NDP parents in executive positions. Due to their thoughtful contribution, an additional 14 students who meet need-based criteria and who qualify academically will now be able to attend Notre Dame for four years beginning in August, 2010. Each student who qualifies will receive a scholarship of $5900 the first year, and it will increase each of the following years. This gift is a wonderful reminder of how our NDP community has the power to change lives.

These NDP parents who wish to remain anonymous recognized the good they could do by taking advantage of an Arizona state tax opportunity that allows corporations to designate their tax dollars for the benefit of a specific school. This is inspirational giving and an excellent example of the corporate state tax credit in action. It is important to Notre Dame that other companies that qualify for this tax credit also step forward to help NDP and other Catholic schools.

Any C corporation may make a contribution to a school tuition organization (STO) and receive a dollar-for-dollar tax credit up to the full amount of its tax liability.  There is no maximum amount that a corporation can contribute. 

This is a unique opportunity that has the potential to be a huge windfall for Notre Dame.  Under this program, corporations have been able to redirect their states taxes and now insurance companies can too. Do you know someone in senior management of a national insurance company? If they do business in Arizona, the company pays a state tax that is almost 2% of all the premiums collected. This premium tax can now be re-directed to fund scholarships at Notre Dame!

An important benefit of helping the neediest students with this corporate tax program is that it frees up CTODP scholarship money for even more of our students. This is truly a win-win opportunity for both our school and a student population representing a broad spectrum of financial need. 

More than 50 corporations, including Shea Homes, National Bank of Arizona, Insight, Compass Bank and P.F. Chang’s are supporting Arizona's Catholic schools by taking advantage of the corporate tax credit to help our families in need.  If you know of an individual who is in a leadership role in a corporation, please let me know.  Not everyone is aware of this opportunity that can make a tremendous impact on the lives of many students.  The state has an annual cap on this program, and there is only $11 million left for this fiscal year. 

Sincerely,

Carolyn Rock
NDP Director of Development

Frequently Asked Questions
Printable form (pdf)

2010
Q. How does the Tuition Tax Credit work?
Q. What are the maximum tax credit limits?
Q. Where do I mail my payment?
Q. Can I contribute online?
Q. Can I take advantage of the public school credit, too?
Q. How do I get my tax receipt and the tax forms needed to claim the credit?
Q. Can I designate my payment to a specific student?
Q. Must I designate a school? What is the general fund?
Q. Can I designate more than one school?
Q. How do I determine my tax liability?
Q. How do I claim the credit on my tax return?
Q. How does a tax credit differ from a tax deduction? Can I claim both?
Q. Does the Catholic Tuition Organization of the Diocese of Phoenix (CTODP) accept matching gifts from employers?
Q. How will the Catholic Tuition Organization of the Diocese of Phoenix (CTODP) distribute the funds collected?
Q. Where can I obtain more information regarding the Arizona Tuition Tax Credit program?
Q. How can I learn more about the new corporate tax credit?

Q.   How does the Tuition Tax Credit work?

A.   Any Arizona taxpayer can contribute up to $1000 to a School Tuition Organization that provides scholarships to students in private schools.  When you file your state tax return, you get the money back as a dollar-for-dollar credit.

Q.   What are the maximum tax credit limits?

A.   Private School Credit:  
      $1000 per tax year – married, filing jointly    
      $500 per tax year – single or head of household

       Public School Credit:  
      $400 per tax year – married, filing jointly    
      $200 per tax year – single or head of household

Q.   Where do I mail my payment?

A.   CTODP
       Bank Processing Center
       P.O. Box 53321
       Phoenix AZ 85072

Q.   Can I contribute online?

A.   Yes, at www.catholictuition.org -- online contributions can be made through December 31st.  It is secure, convenient and generates an instant tax receipt via email.

Q.   Can I take advantage of the public school credit, too?

A.   Yes!  Contact the public school of your choice for details on where to send your payment.  The Catholic Tuition Organization of the Diocese of Phoenix (CTODP) is unable to accept payments for the public school credit.

Q.   How do I get my tax receipt and the tax forms needed to claim the credit?

A.   Receipts will be mailed by the end of January, along with Arizona Tax Forms 301 and 323.  The forms are also available on www.catholictuition.org, or from a tax preparer, or from the Arizona Department of Revenue.

Q.   Can I designate my payment to a specific student?

A.   The Catholic Tuition Organization of the Diocese of Phoenix (CTODP) does not accept individual student recommendations; however you can designate your money to go to the students at a particular school.  Undesignated funds are distributed where needed most.

Q.   Must I designate a school?  What is the general scholarship fund?

A.   You do not have to designate a specific school.  In fact, the Catholic Tuition Organization of the Diocese of Phoenix (CTODP) prefers contributions be left undesignated in the General Scholarship Fund so they can be awarded to students with the greatest financial need at any diocesan school.

Q.   Can I designate more than one school?

A.   Yes, you may designate more than one school and choose how much goes to each.  For mailed in payments, write the schools and amounts in the designation box.
 

Q.   How do I determine my tax liability?

A.   Review your previous year’s state tax return or call your tax preparer.  Your liability is the total amount of tax due to the state, not the amount you underpaid or had refunded to you.

Q.   How do I claim the credit on my tax return?

A.   The credit may be claimed on the designated forms of your Arizona individual income tax return. The credit will benefit you only to the extent that you incur an Arizona income tax liability.  Any unused credit can be carried forward for up to five (5) consecutive tax years.

Q.   How does a tax credit differ from a tax deduction?  Can I claim both?

A.   A tax credit is significantly more beneficial than a deduction.  A tax credit enables the contributor to get 100% of the contribution back dollar-for-dollar while a deduction allows the contributor to get a much smaller percentage back according to his or her tax bracket.  For example:  A person in the 28% tax bracket could only get a maximum of 28% of his or her contribution back as a deduction, whereas that same person could get 100% back as a tax credit.   On your state tax return, if you claim the credit, you cannot also claim a deduction.  However, you may be able to claim the contribution as an itemized deduction on your Federal tax return, thus lowering the amount of Federal tax paid.

Q.   Does the Catholic Tuition Organization of the Diocese of Phoenix (CTODP) accept matching gifts from employers?

A.   Yes!  Obtain the application from your employer and send it to: CTODP, 340 E. Palm Lane #138, Phoenix AZ 85004-4528.  Or you can mail it with your payment.  You will be notified once we have received the matched funds.  Matched funds are designated the same way as the personal payment.

Q.   How does the Catholic Tuition Organization of the Diocese of Phoenix (CTODP) distribute the money collected?

A.   Every student entering one of the 38 diocesan schools in grades K-12 each school year is eligible to complete an application for a scholarship. The primary criteria for awarding scholarships are financial need.  The Catholic Tuition Organization of the Diocese of Phoenix (CTODP) strives to assist as many students as possible to the extent of their need based on the funds available.

Q.   Where can I obtain more information regarding the Arizona Tuition Tax Credit program?

A.   More information can be obtained online at www.catholictuition.org or from the Department of Revenue at http://www.revenue.state.az.us/brochure/707.pdf or by calling (602) 255-3381 in Phoenix or (800) 352-4090, toll-free statewide.

Q.     How can I learn more about the new corporate tax credit?

A.    If you would like information regarding the new corporate tax credit, please visit our website at www.catholictuition.org or call Debra Castro at 602-218-6580.

Back to top