Are you an Illinois taxpayer? Want to have a long-term impact on communities right here in The Prairie State? The State of Illinois is making that easier for you financially than ever before.
Under the Illinois Gives Tax Credit Act, Illinois taxpayers are eligible for a 25% State of Illinois tax credit for contributions to permanent endowment funds at community foundations in the state. That’s a credit, not a deduction, meaning it’s a direct reduction in your Illinois tax liability for the year. There are several requirements, including:
- Maximum tax credit per individual taxpayer per year: $100,000
- Maximum credits statewide per year: $5,000,000
- Credits are nontransferable, but unused credits may be carried forward for up to five years
- Contributions must go to one or more permanent endowment funds at a Qualified Community Foundation in Illinois, and those endowment funds must benefit people in Illinois
- No minimum contribution to qualify
- Illinois Gives Tax Credit Act sunsets at the end of 2029, unless it is extended by the Illinois General Assembly.
Not sure whether there’s a qualified community foundation in your area? The Alliance of Illinois Community Foundations can help you locate one, and they have more information about the Illinois Gives Tax Credit Act on their site.
You can also access relevant information, including the process for claiming a tax credit, from the Illinois Department of Revenue.
New to community foundations or endowments? Curious as to whether an endowment fund at a community foundation would fit well within your charitable plan? Let’s chat. I bet we can figure it out together.
This information is not intended as legal, tax, or financial planning advice. Readers should consult with their own professional advisors before making any charitable gift.