Illinois Gives Tax Credit Act Opportunity
The Illinois Gives Tax Credit Act became effective January 1, 2025. This act encourages individual donors by offering an additional 25% tax credit for endowed gifts to the Illinois Community Foundations. This sets a main goal to motivate permanent endowments that benefit Illinois communities.
What all do you need to know about the Tax Credit Act?
There is $5M in tax credits are available allowing up to $20M in donations. This would mean individual taxpayers can claim up to $100,000 in tax credits. This is not a federal tax credit but only for Illinois income tax. In order to claim the tax credit offered you do not have to be an Illinois resident, but you do have to be paying Illinois income tax.
As long as you are an Illinois taxpayer, you are qualified to donate. This would include individual and joint filers, corporations, partnerships, and trusts. Having this Tax Credit act be this way makes it possible for everyone to give to the community.
Learning More about the Gifts and Funds
An eligible gift is a donation to an endowed at an accredited Illinois Community foundation. The Moline Regional Community Foundation accepts gifts such as cash, stocks, retirement assets, life insurance, charitable gift annuities, & business.
An endowed fund is permanently invested for growth and preservation of assets. The Moline Regional Community Foundation payout rate is currently 4.25% of the net assets based on a 4-year average. An eligible endowment would include scholarships, nonprofit partners, & designated funds. An endowment donation however cannot go to charities outside Illinois, they must award only grants to Illinois nonprofits.
How to make the next step in donating or receiving this tax credit?
If you want to make a donation you can do that by either sending in a check to the Moline Regional Community Foundations CO/ The Arc’s Emergency Assistance Fund. The mailing address is: 1601 River Drive, Suite 210, Moline, IL 61265 or you can visit their website molinregionalcf.org. The website will give you the list of funds and place to donate. Select The Arc’s Emergency Assistance Fund or go directly here: https://moline.fcsuite.com/erp/donate/create/fund?funit_id=1007.
Moving forward and steps to apply and receive the Illinois Gives Tax Credit.
- Make a contribution to Moline Regional Community Foundation.
- You will receive confirmation and receipt of contribution.
- Within 30 days, you will receive required paperwork and next steps from the Illinois Department of Revenue for donors to claim the credit
Helping The Arc Endow the Future!
The Arc Emergency Assistance Fund is an endowed fund established to supporting the needs of Illinois-based residents living in group homes. This provides a secure and permanent source of funds to strengthens The Arc’s services and supports. Allow yourself to be an important part in The Arc’s future and providing a more inclusive and accepting future.
