Endow Illinois – HB 1241
- PURPOSE: Incentivize local charitable giving and permanent community endowments
- SUPPORTED BY: Forefront, Alliance of Illinois Community Foundations
- IMPACT: Would authorize a state income tax credit equal to 25% of contributions made to a permanent endowment at a qualified community foundation. Would bolster resources available to nonprofits in Illinois statewide in perpetuity. See a similar program in Iowa (Endow Iowa).
- EQUITY NOTE: The bill stipulates that taxpayers at all income levels are eligible. At least 10% of the total tax credits available in one tax year would be reserved for small individual gifts (up to $30,000 each) and no single taxpayer could receive more than $100,000 in tax credits. Further, no more than 15% of the credit may go to any one community foundation, making it more accessible statewide in rural and urban communities.
- Download a Fact Sheet
- PURPOSE: Reduced financial and administrative burden for the smallest nonprofits in Illinois
- SUPPORTED BY: Forefront, Arts Alliance Illinois, Illinois Collaboration on Youth, Illinois Partners for Human Service, Illinois CPA Society
- IMPACT: Illinois has the most burdensome nonprofit audit threshold in the US, requiring a full audit once a nonprofit receives solicited contributions in excess of $300,000. In 2023, SB172 is expected to have a compromise amendment that will set the threshold for a full audit at $500,000 in annual contributions. The proposal includes a sunset date of January 1, 2029, at which time the audit threshold may be revised again to reflect cost of living changes or revert to the current level.
- EQUITY NOTE: Full audits are costly and this is an undue burden on the smallest nonprofit businesses in Illinois. Many small nonprofits are led by Black, Indigenous, Latinx/o/a, and Persons of Color (BIPOC), serve persons of color, and/or conduct advocacy on behalf of BILPOC groups.
- Download a Fact Sheet
- FY24 Budget Info Coming Soon
- Governor’s Budget, February 2022
- FY23 Enacted Budget
- Forefront will support legislation to appropriate funding for the Human Service Professional Loan Repayment Program, which supports direct service professionals at community-based human service organizations that are funded by a state agency.
- Forefront will continue to support ongoing funding for the Illinois Nonprofit Security Grant Program, which supports important security improvements for nonprofits and faith institutions that are targets of terrorism.
Lobbyist Registration Act and Rules
Forefront speaks regularly with State Officials and other advocates working on how lobbying rules affect the nonprofit and philanthropic sectors. The sweeping changes made to lobbying rules as of 1/1/22 leave many questions unanswered for our sector, and follow-up rules and/or legislation may ensue. Of particular concern is the impact of the $300 per entity/per lobbyist fee that applies to statewide and local lobbying. While Chicago provides an exemption to their registration fee for 501c3s, the Secretary of State does not. Additionally, Forefront is concerned about the lack of clarity around the rules for local lobbying and how those apply to nonprofits that work closely with various local government entities on a regular basis. We will update this space when lobbying and ethics proposals are being considered by the state legislature.
Forefront works closely with other nonprofit and philanthropic sector stakeholders, and supports legislation that is championed by key partners when it aligns with Forefront’s policy platform, commitment to racial equity, and sector interests. Conversely, at times we monitor or oppose legislation that may negatively impact the social impact sector. Here are bills we are watching currently.
The Secretary of State regulates state and local government lobbying (with the exception of Chicago). Please review our summary of Lobbying Rules for detailed information about maintaining compliance.