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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.

 

To take action on the Illinois Gives Act you can:  

Advocate for the Illinois Gives Act and a thriving and vibrant social impact sector in Illinois with Forefront’s Social Impact Action Center. This new platform, in partnership with Voter Voice, is a grassroots advocacy tool that will help Forefront engage our statewide supporters for collective action, educate lawmakers at the local, state and federal levels, on key legislation and regulations, and amplify the message that philanthropic organizations, including nonprofits, grantmakers, advisors and allies, can help make Illinois a more equitable and accessible place all.

The Illinois Gives Act Fact Sheet, created in partnership with the Alliance of Illinois Community Foundations, summarizes the key elements of the bill and how the Illinois Gives Act will help stabilize Illinois’ nonprofit sector services and the communities they serve, statewide and in perpetuity. Download here. Check out an infographic explaining how the program will work once enacted here. Read the testimony to the House Revenue Committee from Director of Policy and Government Affairs Holly Ambuehl here.

The Illinois Gives Act responds to the impact that the Tax Cuts and Jobs Act of 2017 had on charitable giving. The number of taxpayers taking advantage of the charitable deduction federally significantly decreased after the passage of the Trump Tax Cuts, and charitable giving saw a decline as well as a result. However, the temporary universal charitable deduction in 2020 and 2021 showed the strong interest in these incentives. A state tax credit would provide an incentive for charitable giving in Illinois to help replace the loss of incentives at the federal level.

For communities to thrive, they must thoughtfully invest in education, health care, economic development, and other community amenities. Other states, including Iowa and Kentucky, are successful examples of the power of community-based philanthropy to drive community transformation by leveraging over $300 million in charitable giving and has a one-year wait list. Read about Endow Iowa and Endow Kentucky.

 

Forefront’s Policy and Government Affairs team works year-round at the federal, state, and local levels to advocate for Illinois nonprofits, foundations, and their allies. Send questions and feedback to PublicPolicy@MyForefront.org, and sign up for our Social Impact Action Center to receive real-time updates.

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