New legislation amplifies philanthropy in Illinois

Governor J.B. Pritzker has signed two pieces of legislation that will increase giving and funding opportunities for nonprofit organizations and enhance workforce development in Illinois. The Quad Cities Community Foundation and all the region’s community foundations celebrate this historic change.

“Our staff, as part of the Alliance of Illinois Community Foundations (AICF), were dedicated advocates of this legislation,” said Sue Hafkemeyer, president and CEO of the Quad Cities Community Foundation. “We believe the policy changes will greatly increase the impact of generosity in the Quad Cities region. We’re excited to see that our legislators and the Governor believe in the work and importance of community foundations.”

The Illinois Gives Tax Credit Act (“Illinois Gives”) incentivizes up to $100 million over the next five years in new charitable giving through a 25 percent state income tax credit for charitable donations made to permanent endowments that benefit the state and are held by qualified Illinois community foundations.

“Our community foundations already amplify local giving by taking some of the administrative burden off of donors,” said Illinois state senator Mike Halpin. “The Illinois Gives Tax Credit will only further incentivize contributions to organizations that know how to maximize those dollars for charitable purposes. I’m proud to have advocated for the tax credit in this year’s budget for this important tool.”

The Workforce Development Through Charitable Loan Repayment Act (“Loan Repayment”) uses private charitable funds to attract and retain workers in Illinois communities. Eligible community foundations will directly repay part or all of a worker’s student loans directly to the lender, and the worker will not pay state income tax on that charitable loan repayment.

"I am proud to support the Illinois Gives Tax Credit Act and the new Loan Repayment program, which will play a pivotal role in incentivizing charitable giving and retaining skilled workers in our communities,” said Gregg Johnson, state representative for the 72nd district. “The nonprofits in our community do incredible work every day but are also limited by available funding. The Illinois Gives Tax Credit Act will empower these fantastic organizations with more resources to help more people.”

Notably, the Loan Repayment program can leverage the Illinois Gives tax credit. Beginning in tax year 2025, donors can receive the tax credit by giving to a fund used for Loan Repayment. “These incentives were thoughtfully designed to work together and drive local philanthropy,” said Hafkemeyer. “The Community Foundation and our donors are invested in long-term transformation for our region. This legislation creates new tax-advantaged giving vehicles that will support that transformation for years to come.”