Pritzker Signs New Illinois Legislation Increasing Giving And Funding Opportunities For Nonprofits
Quad Cities, Iowa / 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 region’s three community foundations—Moline Regional Community Foundation, Quad Cities Community Foundation, and Rock Island Community Foundation—all celebrate the historic effort.
“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.”
Illinois Gov. JB Pritzker
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.
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.
“These acts are creative solutions which incentivize giving and community involvement,” said Paul Plagenz, president and CEO of Moline Regional Community Foundation. “Our donors want to make an impact in their community, and this legislation ensures this is possible and their dollars will stay local.”
Similar tax credit programs in other states have increased both the number of donors and total charitable dollars given.
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 programs were thoughtfully enacted and work together to support local change,” said Gary Rowe, executive director of the Rock Island Community Foundation. “Donors are interested in long-term change, and we can now provide giving opportunities that are tax-advantaged and will build the strength of the workforce and the region for years to come.”
