THE ILLINOIS GIVES ACT WILL CREATE A THRIVING STATEWIDE SOCIAL IMPACT SECTOR
The Illinois Gives Act (HB 1241/ SB172) incentivizes charitable giving by Illinois taxpayers, at all income levels, by authorizing a state income tax credit for 25% of gifts to qualified community foundations’ permanent endowments (donor advised funds are excluded).
Community foundations serve every community in Illinois. They are place-based 501c3 public charities that also make grants to other nonprofit organizations. Community foundations are governed at the community level by boards of directors and remain transparent and accountable to the communities they serve, often engaging a wide number of local residents in the grant making process.
Permanent endowments fund general operating and program grants to nonprofits, provide stable funding during economic downturns and emergencies, and may be used for loan collateral and capital projects. Any nonprofit may establish a permanent endowment at a community foundation.