The Illinois Gives Act creates, for the first time, a nonrefundable 25% state charitable income tax credit at a total cost to the state of only $5 million per year. Donations through this program can support general operating, program, and/or capital endowments for charitable causes and organizations.

It’s intended to create a permanent, stable, predictable source of funding for nonprofits; plus, it offers tax relief to those who do not itemize their taxes.

Only Qualified Community Foundations in Illinois can issue Illinois Gives tax credits. Qualified Community Foundations must be accredited through Community Foundations National Standards. (https://www.cfstandards.org/)

Illinois Prairie Community Foundation is approved as a Qualified Community Foundation.

A permanent endowment is a fund which is kept in perpetuity, with only its earnings providing grants for charitable purposes.

A community foundation uses the earnings that it receives from the investment of the initial donation to support charitable projects and operations. The distribution must be held to the community foundation's spending rate. For Illinois Prairie Community Foundation, that is generally 4% (percentage determined annually by IPCF's Board of Directors).

No. Only gifts to non-donor advised permanent endowments at Qualified Community Foundations are eligible for the state tax credit.

Gifts must be made to permanently endowed funds at Qualified Community Foundations that exclusively benefit Illinois causes. This includes field of interest, designated, scholarship, friend of foundation, and some unrestricted endowments.

Donors will apply to make a contribution through MyTax Illinois and then receive authorization to move forward with the gift. The gift must be made within 10 business days. After receiving the contribution, a community foundation will issue a certificate of receipt which is used to claim the credit on your tax return.

If you do not already have a MyTax Illinois account, you will need to request a “Letter ID.”

Go to mytax.illinois.gov and scroll down to the box titled “Individuals.” Within that menu, click “Request Letter ID” and fill out the form. Within 10 days, you will receive a letter via USPS with an ID to use to create an online MyTax Illinois account.

Once you have the ID, return to mytax.illinois.gov and click “Sign Up” within the login box at the top-right of the screen. Follow the prompts to establish your account.

Yes, but we will need to ensure a portion of the fund is restricted to Illinois causes for the gifts to be placed in. Please contact the IPCF to discuss next steps.