QCF - Requirements

Qualified Community Foundations (QCFs) must be a 501(c)(3) tax-exempt organization and be approved by the Illinois Department of Revenue (IDOR) before accepting contributions eligible for tax credit under the Illinois Gives Tax Credit Program. 

Applications to become a QCF must be completed online through IDOR’s website.

Contributions must be irrevocable and made to a permanent endowment fund held by a qualified community foundation.

A permanent endowment fund is a fund which is kept in perpetuity, with only its earnings providing regular operating support and funding for charitable projects. Other than investing, the holding foundation may not use any of the money from the initial donations (or from property that was liquidated). Instead, the foundation uses the earnings that it receives from the investment of the initial donation to support its projects and operations.

To qualify for the Illinois Gives Tax Credit Program, the permanent endowment funds must:

• provide charitable grants exclusively for the benefit of residents of Illinois or charities and charitable projects located in Illinois;
• exist into perpetuity;
• have an annual spending rate based on the foundation spending policy (not to exceed 7%); and
• not be a donor advised fund.

During the online application process, the applicant must include:

• a copy of the letter issued by the Internal Revenue Service to the QCF that it has been granted an exemption from taxation under Section 501(c)(3) of the Internal Revenue Code;
• certification that the QCF meets the qualifications under Section 170(b)(1)(A)(vi) and meets the standards established by Community Foundations National Standards;
• certification that the QCF holds permanent endowment funds meeting the criteria in Section 1050.100;
• a list of the names and addresses of all members of the governing board of the QCF;
• the primary email address to which notices and other documents provided for under the Act shall be sent;
• the beginning and ending dates of the QCF's fiscal and taxable years; and
• a copy of the most recent financial audit of the QCF’s accounts and records conducted by an independent certified public accountant in accordance with auditing standards generally accepted in the United States, government auditing standards, and rules adopted by IDOR.
  Note: If the QCF is registered under Section 2 of the Solicitation for Charity Act, and is subject to subsection (b) of Section 4 of that Act, and files a summary financial statement or written report to the Attorney General in accordance with the Act, the QCF may submit a copy of the most recent summary financial statement or written report for its initial application.

Be sure to have electronic versions of your documents. These must be attached to your online application.