Beginning January 1, 2025, Illinois taxpayers will have a new incentive to consider when planning for charitable giving. In the spring, the Illinois General Assembly passed the Illinois Gives Tax Credit Act, which offers a 25% Illinois income tax credit to any individual or joint filer, corporation, partnership, trust, or estate that gives to an endowed fund managed by an Illinois community foundation in compliance with national standards. There are 35 community foundations in the state of Illinois, including Community Foundation of East Central Illinois located in Champaign.
We reached out Allison Winter, President and CEO of CFECI this fall to learn more about the work they do here in Champaign County and the eight surrounding counties in East Central Illinois. Part of that work involves managing endowed funds that provide grants to area nonprofits, and scholarships to students in the service area. In 2023, they provided over $55,000 in grants to area organizations such as Habitat for Humanity of Champaign County, Luella’s Lodge, and RACES, among others.
CFECI has an informative FAQ on their website that gives some additional information about this new tax incentive. A few highlights:
It is only for Illinois income tax, not for federal income tax.
“Eligible” endowments include designated, field of interest, scholarship, and agency/nonprofit funds. Donor advised funds are not included.
The maximum tax credit per filer is $100,000 (donation of $400,000).
The paperwork and instructions for claiming the credit are still in process. CFECI will provide updates as they have them.
More information can also be found at Forefront, a statewide association representing nonprofits and grantmakers.