Illinois Gives: A New Way to Support Our Communities
Have you ever wanted to make a bigger difference in your community but weren't sure how? Well, Illinois has some exciting news for you! The state just passed a new law called the Illinois Gives Tax Credit Act, and it's all about helping people like you give back to your community in a big way.
What's This New Act All About?
Simply put, this new law encourages people to donate money to good causes by offering a nice tax break. Here's how it works:
When you donate to certain community foundations in Illinois, you can get a tax credit.
This tax credit is worth 25% of what you donate.
For example, if you donate $1,000, you could get $250 off your state taxes!
Why Is This Important?
In recent years, fewer people have been donating to charities, and the amount of money being donated has gone down. This new law aims to turn that around by making it more rewarding to give. It's a win-win situation – you pay less in taxes, and worthy causes get more support!
Who Can Benefit?
Individuals and families
Businesses
Nonprofit organizations
Communities all across Illinois
How Does It Help Our Communities?
More Money for Good Causes: This law encourages people to donate more, which means more funding for important community programs.
Helping Nonprofits Stay Strong: Many nonprofit organizations are struggling to keep up with the growing need for their services. This law provides a more reliable source of funding to help them continue their important work.
Boosting the Economy: For every dollar given in tax credits, communities are expected to see $2.50 in benefits. That's a great return on investment!
Promoting Fairness: This law could help create more opportunities for organizations led by and serving communities of color. It also provides tax relief for middle and lower-income taxpayers who want to give back.
How Can You Participate?
Starting January 1, 2025, you can make donations to special funds at approved community foundations in Illinois. When you file your taxes for 2025 (which you'll do in early 2026), you'll be able to claim your tax credit.
The Big Picture
This new law is set to run for five years, until the end of 2029. During this time, it has the potential to make a huge positive impact on communities throughout Illinois. By encouraging more people to give and providing extra support to nonprofit organizations, the Illinois Gives Tax Credit Act could help create lasting improvements in our state.
So, if you've been thinking about how to make a difference in your community, keep an eye out for this program in 2025. It could be your chance to give back and save on taxes at the same time!
Important Disclosure: United Way of Pekin is not a legal, tax, or financial advisory organization. The information provided here is for general informational purposes only and should not be considered professional advice. We strongly recommend consulting with qualified legal, tax, or financial professionals before making any decisions based on this information.