Illinois Gives Act will Incentivize Philanthropy

The Community Foundation for McHenry County is pleased to announce the enactment of the Illinois Gives Tax Credit Act (“Illinois Gives”). Illinois Gives will incentivize up to $100 million in new charitable giving over the next 5 years by authorizing a 25% state income tax credit for charitable donations to eligible permanent endowments held by community foundations across Illinois. In addition to Illinois Gives, the new Loan Repayment program will use private charitable dollars to attract and retain locally needed workers in Illinois communities. Both initiatives will begin January 1, 2025.

“Illinois Gives will undoubtedly build better communities and improve the quality of life for residents in McHenry County and across the state through increased donations. Nonprofit organizations provide vital services for the health of our communities. Ensuring these organizations have adequate funding to deliver their services is part of our work at The Community Foundation. Illinois Gives will only elevate this work.”  said Amy Hernon, Executive Director of The Community Foundation for McHenry County.

Endowed funds at community foundations offer a reliable source of operating and capital funding for nonprofit organizations and programs. Similar tax credit programs in other states have significantly increased both the number of donors and total charitable contributions. Recent changes to federal tax laws since 2017 have decreased incentives for charitable donations, leading to fewer donors and donations nationwide. Illinois Gives aims to reverse this trend within Illinois.

“We are excited to work with individuals and families to create a permanent funding source for nonprofit organizations. The future is bright for philanthropy in Illinois,” said Jessica Rizza, Director of Philanthropy at the Community Foundation for McHenry County.

Illinois Gives will benefit a wide range of taxpayers, including individuals, corporations, partnerships, trusts, and estates. Importantly, it provides new tax relief for individual taxpayers who do not itemize their taxes, which constitutes the majority of people in Illinois.

As 2025 approaches, the Community Foundation for McHenry County will be prepared to educate donors and employers about participating in these innovative new programs.