The Illinois Gives Tax Credit Program is now live

The Illinois Gives Tax Credit Program is now live.

As of January 1, 2025, donors who give to an endowed fund at a qualified community foundation can receive a 25% State of Illinois income tax credit.

The Community Foundation of Grundy County is a qualified community foundation and has already been approved by the Illinois Department of Revenue.

Quick facts:

  • An endowed fund is a permanent fund where the principle is never spent, the interest grows, and an annual distribution amount (CFGC’s is 4%) is paid to charities annually…forever.
  • Donors Advised Funds are NOT eligible for this tax credit, but designated, field of interest, and scholarship funds DO qualify.
  • This is a State of Illinois income tax credit.  Considering 90% of Americans take the federal standard deduction, this is one way for donors to get a tax deduction above the standard federal deduction.
  • Local charities can talk with their donors about this tax credit and encourage donors to gift to that charity’s designated fund at CFGC.  The donor will receive the tax credit and the charity will receive annual income from that gift.  Many donors can contribute to a charity’s designated fund at CFGC.
  • Donors (or their accountants) need to create an account at https://mytax.illinois.gov/_/ in order to receive the tax credit.

This link has additional details:  https://tax.illinois.gov/programs/illinoisgives.html

Here is a link to CFGC’s most recent story in the Morris Herald News:  https://www.shawlocal.com/morris-herald-news/2025/01/11/illinois-gives-tax-credit-provides-25-state-income-tax-credit-for-donations-to-endowment-funds/

Donors, charities, and accountants with additional questions are invited to contact Julie Buck at CFGC at 815-941-0852 or [email protected].

If a donor wants to contribute to a charity’s designated fund that isn’t yet set up, we’ll do that first (which is a quick process), then issue a charitable tax receipt to the donor, who will then apply to the Illinois Department of Revenue for the tax credit.