Illinois Gives – Tax Credit
As of January 1, 2025, donors who give to an endowed Fund at a qualified community foundation (QCF) can receive a 25% State of Illinois income tax credit. The DeKalb County Community Foundation is a qualified community foundation and has been approved by the Illinois Department of Revenue.
To begin, donors (or their accountants) need to create an account at https://mytax.illinois.gov/_/ in order to receive the tax credit.
Quick Facts:
- An endowed Fund is a permanent Fund where the principle is never spent, the interest grows, and a distribution amount is paid to charities annually.
- Donor Advised Funds and Agency Funds are NOT eligible for this tax credit.
- Endowed Community Impact, Designated, Field of Interest, and Scholarship Funds that reside at the DeKalb County Community Foundation and benefit Illinois organizations DO qualify. View a list of eligible Funds >
- 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 them to give to eligible Funds at the Community Foundation that benefit them. The donor will receive tax credit and the charity will receive annual income from that gift.
Qualified Charitable Foundation Donations - MyTax Illinois
To donate to the DeKalb County Community Foundation as a Qualified Charitable Foundation (QCF) through MyTax Illinois, donors must follow these steps:
- Verify Eligibility – Ensure you’ve filed an IL-1040 tax return with the Illinois Department of Revenue and have a current mailing address on file.
- Set Up Your MyTax Illinois Account – Create an account on mytax.illinois.gov using a recent Letter ID from the Illinois Department of Revenue. If you do not have a Letter ID, click “Cancel” on the login creation page and select the “Request a Letter ID” link in the Individuals panel of the homepage. A notice with the Letter ID will be mailed to the address on file within 10 days.
- Apply for a Contribution Authorization Certificate (CAC) – Once your MyTax Illinois account is active, log in and apply for a CAC by selecting the DeKalb County Community Foundation (QCF dropdown), enter your donation amount, and submit.
- Provide the CAC to the Foundation – Share the certificate with the Community Foundation.
- Make Your Donation – Complete the donation to the DeKalb County Community Foundation within 15 days of CAC issuance.
- Receive Confirmation – Once the Community Foundation verifies the donation, you will receive a Certificate of Receipt (COR) for tax purposes.
If you encounter any issues such as delays, difficulties setting up your MyTax Illinois account, or problems obtaining your CAC or COR, contact the Illinois Department of Revenue for assistance.
By following the steps above, you can successfully navigate the MyTax Illinois system and contribute to the Dekalb County Community Foundation while ensuring compliance with all state requirements.
We are happy to answer any questions you have. Please contact Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org.
Illinois Gives Tax Credit Act - Additional Information
What is the official name of the legislation?
Illinois Gives Tax Credit Act
HB4951/Public Act 103-0592, Article 170
What does it do?
Provides a 25% State of Illinois charitable income tax credit to donors who contribute to an endowed Fund at a community foundation in Illinois that is in compliance with National Standards. The DeKalb County Community Foundation has National Standards accreditation.
Is this a federal tax credit?
No. Illinois income tax only.
Can a taxpayer get a federal charitable deduction and IL Gives Tax Credit on the same dollar?
For individual taxpayers, yes. For other types of taxpayers (i.e., corporations, partnerships, estates, and trusts), no. The starting point for calculating IL state income taxes is the federal Adjusted Gross Income (AGI). For individuals, on the Form 1040, itemized deductions such as the federal charitable deduction are subtracted on the federal return on line 12, after calculating the AGI on line 11. Thus, an individual can in fact take both an itemized federal charitable deduction and an IL Gives Tax Credit on the same gift, without increasing the cost to the state. This double incentive will be a powerful tool to generate more individual giving. But, the same does not apply to corporations, partnerships, estates, and trusts. The new law corrects for this to ensure that the state doesn’t take a double hit on charitable gifts from those taxpayers.
Who qualifies as a “donor”?
Any Illinois taxpayer, including individual and joint filers, corporations, partnerships, trusts, and estates can make an eligible gift to an eligible institution.
Do I have to be an Illinois resident?
No, if you pay Illinois income tax.
What is an “eligible gift”?
A donation to an endowed Fund at an Illinois community foundation that is in compliance with National Standards. The DeKalb County Community Foundation has National Standards accreditation.
What assets can be gifted?
Any asset that a community foundation already accepts per that foundations gift acceptance policy.
Can a donor apply to get credits on a donation already made?
Yes, but the donor must apply within 15 business days of making the donation, and both the donation and certificate must be issued in the same year.
What is an “endowed Fund”?
A Fund where the principal is held for ever and the income is used for grantmaking. At the DeKalb County Community Foundation, our endowment spending policy, annual Board decision, is 4-5% annually.
What types of Funds can be endowed?
Community Impact, Designated, Field of Interest, and Scholarship Funds.
Are Donor Advised Funds or Agency Funds included in “eligible” endowments?
No.
Can a donor create a new endowed Fund to be the recipient of these eligible gifts?
Yes. A donor can choose to donate to an existing endowment or create a new endowed Fund.
What is an Agency Fund?
A Fund created by the nonprofit organization who is setting it up to be a permanent, long-term source of income. Donations of all sizes are welcome to any Agency Fund.
Does the DeKalb County Community Foundation have its own operating endowment?
Yes. There are numerous endowed Funds that support the operations and mission of the DeKalb County Community Foundation. These are IL Gives Tax Credit eligible endowments.
What are National Standards?
Community Foundations National Standards® (National Standards) is an accreditation program created by and for community foundations. It is a peer-driven, voluntary, and self-regulatory program that signifies operational excellence in community philanthropy. Community foundations must renew their accreditation every three years to maintain this distinction. The DeKalb County Community Foundation is proudly accredited by National Standards.
Are there limits or caps on the credit?
Yes. The cost to the State of Illinois is capped at $5 million. Individual filers can receive a maximum tax credit of $100,000, which requires a $400,000 donation since the credit is 25%. The program is restricted to supporting causes and programs within Illinois, ensuring that dollars remain in the state's economy. Lastly, the program is set to sunset at the end of 2029 unless extended by the Illinois General Assembly.
Can one community foundation's donors claim the entire $5m?
No. The IL Gives Act limits any single community foundation to receiving a maximum of 15% of the total funds. This cap is designed to ensure that rural areas and communities with less wealth can benefit. At full capacity, the program could generate up to $3 million in additional private donations per year for an individual community foundation—a significant impact, especially in rural areas.
How are these donations documented?
Any gift to a community foundation is already documented and the donor receives a charitable tax receipt, which includes the date of the gift and the fact that no goods or services were provided in exchange for the gift. The Illinois Department of Revenue is creating paperwork and a process for donors to claim this 25% income tax credit. More information to come!
Can the endowed Funds benefit charities outside of Illinois?
No. Each endowed Fund that receives gifts eligible under this Act must award grants to charities for their operations and programming that occur within the State of Illinois.
Are ALL charitable gifts to ANY charitable organization eligible for this tax credit?
No. Only gifts to permanent endowments at community foundations (excluding Donor Advised Funds) in compliance with National Standards are eligible to receive the state tax credit (statewide cap of $5M). Gifts to other charities, private foundations, and family foundations are not eligible for this tax credit.
It’s a great time for philanthropy in Illinois!
