The money you contribute goes directly to a Qualified Foster Child Support Organization (QFCSO) that you choose from a state-approved list. These organizations use the funds to provide essential "wraparound services" for eligible youth aging out of foster care. This includes support for education (tuition, books, scholarships), housing (rent, utilities), vocational training, medical and mental health services, nutrition, transportation, and mentorship. Your donation directly funds these vital programs.

Yes, absolutely. This program is established by Georgia law, specifically O.C.G.A. § 48-7-29.24, and was enacted through Georgia House Bill 424. It is administered and overseen by the Georgia Department of Revenue (DOR) and the Division of Family and Children Services (DFCS), ensuring its legitimacy and compliance.

No. Participating in a state-sanctioned tax credit program like the Fostering Success Act does not increase your chances of being audited by the Georgia Department of Revenue. This is a legitimate and encouraged way to use your tax dollars. As long as you follow the proper pre-approval and documentation steps, it is business as usual.

This is a crucial distinction:

• Tax Credit: A tax credit is a dollar-for-dollar reduction in the amount of tax you owe. If you have a $1,000 tax liability and receive a $1,000 tax credit, your tax bill is directly reduced by $1,000. It effectively means you're redirecting your tax payment.

• Tax Deduction: A tax deduction reduces your taxable income, not your tax bill directly. For example, a $1,000 deduction for someone in a 25% tax bracket would only save them $250 in taxes ($1,000 * 0.25).

The Fostering Success Tax Credit is a 100% dollar-for-dollar credit, making it a very powerful and direct way to support a cause.

While the process is designed to be straightforward, it is always recommended to consult with a qualified CPA or tax advisor. They can:

• Help you determine your exact Georgia tax liability.
• Advise on the optimal amount to contribute based on your individual or business tax situation.
• Ensure you correctly navigate the pre-approval process and properly claim the credit on your tax return.
• Address any unique aspects of your financial situation.

No, there are no direct fees charged by the State of Georgia or the QFCSOs for participating in this tax credit program. Your entire approved donation amount goes directly to the chosen organization, and you receive a 100% credit for that amount against your state tax liability.

The pre-approval process through the Georgia Tax Center typically takes around one week for the Georgia Department of Revenue to review and approve your request. It's generally a quick turnaround.

Once you make your donation to the Qualified Foster Child Support Organization (after receiving your pre-approval from the DOR), the QFCSO will send you a confirmation letter or form (e.g., Georgia Form IT-QFCD-FUND1 or IT-QFCD-TP2). This document serves as your official receipt and is what you will attach to your Georgia state income tax return to claim the credit. It's usually provided shortly after your donation is processed by the organization.