Illinois Gives Tax Credit Act

Rewards Donors with a 25% Income Tax Credit – Effective January 1, 2025

To take advantage of this credit, donors will need to register with MyTax Illinois, and apply for a Contribution Authorization Certificate (CAC) through their MyTax account, prior to making an eligible gift. Eligible gifts must be made within 10 business days of receiving a CAC.

More information available here: Illinois Gives Tax Credit Act Contributors Information

What is the official name of the legislation?

Illinois Gives Tax Credit Act – HB4951/Public Act 103-0592, Article 170

What does it do?

Provides a 25% State of Illinois income tax credit to donors who contribute an eligible gift to a qualifying endowed fund at an accredited community foundation in Illinois.

Who qualifies as a “donor”?

Any Illinois taxpayer, including individual and joint filers, corporations, partnerships, trusts, and estates can make an eligible gift.

Is this a federal tax credit?

No. It is only for Illinois state income tax.

Do I have to be an Illinois resident?

No. If you pay Illinois income tax, you can claim the tax credit.

What is an “eligible gift”?

A donation to an endowed fund at an accredited Illinois community foundation. The Community Foundation of Central Illinois (CFCI) is an accredited Illinois community foundation.

What is an “endowed fund”?

A fund where the principal is held in perpetuity and the income is used for grantmaking.

Which endowed funds qualify?

Qualifying funds must be permanently endowed, cannot be donor-advised, and must grant exclusively within Illinois. Contact CFCI if you have questions about whether a specific fund is eligible.

Does CFCI have its own operating endowment?

Yes! CFCI’s operating endowment is eligible to receive gifts within this new legislation.

Can a donor create a new endowed fund to be the recipient of eligible gifts?

Yes. Donors can choose to donate to an existing endowed fund or create a new endowed fund that qualifies for the credit. Please contact CFCI if you are interested in opening a new qualifying endowed fund.

Are there limits or caps on the credit?

Yes. The total tax credit to be distributed is capped at $5 million. The maximum tax credit per taxpayer is $100,000. The maximum donation amount a community foundation can receive is $3 million. The program will sunset after 5 years unless it is extended by the Illinois General Assembly.

How are these donations documented?

The Illinois Department of Revenue has yet to publish their official rules for the tax credit, however, CFCI already issues a charitable tax receipt for every donation to the foundation. We are prepared to incorporate Illinois Gives into this process as soon as the rules are available.

Are gifts to other charitable organizations eligible for this tax credit?

No. Only gifts to endowed funds at qualifying community foundations can receive the tax credit. Gifts to other charities, private foundations, and family foundations are not eligible for this tax credit.

Interested in taking advantage of Illinois Gives? LET’S TALK!

Contact Community Foundation of Central Illinois CEO Mark Roberts
at mark@communityfoundationci.org