New Illinois act will give incentive to taxpayers who donate to foundation endowments

The Illinois Gives Tax Credit Act is an initiative that offers all taxpayers a 25% state income tax credit for donations they make to permanent endowment funds managed by community foundations, including the Starved Rock Country Community Foundation.

Local community foundations are working toward accreditation to participate in this program once the requirements are established. With the opportunity, SRCCF plans to pool and invest donations into designed or previously existing endowment funds that will support various causes such as education, scholarships and economic development in the area.

This will not only help people today, but this program will help people for years to come.”

—  Sally M. Van Cura, donor engagement officer for the Starved Rock Country Community Foundation

Sally M. Van Cura, donor engagement officer for SRCCF, said this program could benefit the Illinois Valley community in more ways than one. She emphasized that the beauty of the program is taxpayers get to choose which cause their money goes to with the incentive of receiving tax credit for the year.

“Illinois Gives offers a significant opportunity for state taxpayers to benefit from substantial tax credit relief while supporting causes close to their heart,” Van Cura said.

Currently, neither state or federal governments offer a universal charitable tax credit program. In the past, the federal government offered a similar program, but it was shut down with 2017 tax cuts. According to a news release from SRCCF, about 10% of Illinois taxpayers who itemize their federal taxes can benefit from a charitable tax deduction.

Van Cura also explained that this act will support more than 60,000 nonprofit organizations throughout Illinois, while employing more than 11% of the state’s workforce.

“In enacting Illinois Gives, the state of Illinois recognizes that nonprofit businesses, which collectively employ 11% of our workforce, are vital contributors to our economy,” Forefront CEO Monique B. Jones said in a news release.

Forefront is Illinois’ statewide association for operating nonprofits and foundations and is a key part in getting this program off the ground.

The Illinois Gives Tax Credit program will begin Jan. 1 and run until early 2030, giving taxpayers five years of tax credit while donating to causes they are passionate about.

“This will not only help people today,” Van Cura said, “but this program will help people for years to come.”