Illinois Gives Tax Credit Program

Illinois Gives Tax Credit Program Effective January 1, 2025

Illinois enacted the Illinois Gives Tax Credit Program in 2024. This program offers a 25% income tax credit to individuals and businesses that contribute to permanent endowment funds held by Qualified Community Foundations (QCFs). The QCFs provide charitable grants exclusively for the benefit of residents of the State or charities and charitable projects located in the State.

The Illinois Department of Revenue (IDOR) can issue up to $5 million in tax credits per calendar year (25% of the $20 million maximum donation amount). Generally, these tax credits shall be awarded on a first-come, first-served basis. Income tax credits cannot exceed $100,000 per taxpayer, per year. (Example: A taxpayer makes a qualified contribution of $10,000 to an approved QCF. The taxpayer will be eligible to claim a $2,500 income tax credit.)

Timeline: Illinois Gives tax credits may be claimed on income tax returns ending on or after December 31, 2025, through returns ending on or before December 31, 2029.

Businesses/Individuals: The online application process for taxpayers to apply for a Contribution Authorization Certificate (CAC) begins on January 1, 2025. Approval is granted automatically as long as donation thresholds have not been met. Individuals must make their contribution to the QCF within 10 business days after the date of the issuance of the CAC. If a donation was already made to a QCF, donors may still apply for a CAC up to 15 business days after donating to a QCF. However, the donation and the CAC must be in the same calendar year.

NOTE: Taxpayers wishing to apply for this credit must have a MyTax Illinois account. Sign up for your MyTax Illinois account now. If you have a MyTax Illinois account already, click here to apply for the Illinois Gives tax credit.

Donor Instructions with Screen Shots

Donors: Next Steps

Taxpayers (including individuals, joint filers, corporations, partnerships, trusts, and estates)

1. Read the IDOR Bulletin and Quick-Start Guide

1. Create a MyTaxIllinois profile by requesting a letter ID. Once requested, IDOR will mail you a hard-copy letter within a few business days with your ID.
2. Once you receive the Letter ID, return to MyTaxIllinois.gov to create your MyTax profile so that you can apply to receive the tax credit after January 1.
3. Apply to make a contribution to a Qualified Community Foundation (QCF) through MyTax Illinois.
4. Receive a Contribution Authorization Certificate (CAC) from IDOR through MyTax Illinois.
5. Make the contribution(s) to the QCF(s) within 10 business days after receiving the CAC.
6. After receiving the contribution(s), the QCF will confirm receipt within 30 business days and a COR will be created and issued to you through MyTax Illinois.
7. After receiving a COR, you may claim the credit on your next income tax return.

Nonprofits: Next Steps

1. Read Forefront’s FAQ and IDOR’s Quick Start Guide
2. There are a variety of ways the IL Gives program may benefit nonprofits, communities, and people in Illinois. Connect with the Community Foundation of the Fox River Valley to learn about the options available such as designated, agency, scholarship, unrestricted, and/or field of interest funds.
3. If your organization already has a designated endowment at the Community Foundation of the Fox River Valley, make a plan to educate your donor(s) about how to take advantage of the tax credit and build up your endowment through this program.

Click here for Illinois Gives Tax Credit Program Frequently Asked Questions.

If you have questions, please contact Julie Christman at jchristman@cffrv.org or call 331-208-9428. As additional information becomes available for this new program, we will add updates to this page.

June 21, 2024 Announcement: New Legislation Amplifies Philanthropy in Illinois through Accredited Community Foundations – Community Foundation of the Fox River Valley