Can a donor make their Illinois Gives Tax Credit contribution as a qualified charitable distribution (QCD) directly from their IRA?

Plain-English summary

An accountant asked, on behalf of a donor, whether a qualified charitable distribution (QCD) made directly from an IRA into a qualified community foundation's endowment fund would qualify for the Illinois Gives Tax Credit. The accountant had already gotten informal verbal confirmation from an IDOR agent that it should work, but the agent couldn't provide anything in writing, so the accountant asked the Legal Services Office for a written opinion.

How the Illinois Gives Tax Credit works. The Illinois Gives Tax Credit Act (35 ILCS 60/170-10) gives taxpayers who contribute to a qualified community foundation's permanent endowment fund an income tax credit equal to 25% of the gift. A taxpayer first applies to the Department for a contribution authorization certificate; after the gift is made, the qualified community foundation issues a certificate of receipt. Under the Department's rules (86 Ill. Adm. Code 1050.350), the contribution must be made by the same person named on the contribution authorization certificate -- if paid by check or credit card, the name on the check or card must match the certificate holder's name.

Why a QCD satisfies that requirement. A qualified charitable distribution is a transfer made directly from an IRA to a qualified charity, which (per IRS Publication 526) can be made tax-free for federal purposes if it goes straight to the charity; the IRA trustee reports the distribution on Form 1099-R, and the donor must obtain written acknowledgment from the charity confirming the contribution date, amount, and that no goods or services were received in exchange. Because a QCD is made from the IRA and reported on the taxpayer's own federal return, the Department concluded it will be treated as satisfying 86 Ill. Adm. Code 1050.350's "made by the certificate holder" requirement -- provided the contribution authorization certificate was issued in the name of the IRA account holder making the distribution.

What this means for you

Donors planning a QCD to a qualified community foundation

You can use a QCD to fund your Illinois Gives Tax Credit contribution, but make sure the contribution authorization certificate is applied for and issued in YOUR name as the IRA account holder before the distribution is made -- that's the specific condition the Department attached to its confirmation.

Community foundations and their donor-advisors

When helping a donor structure a QCD-funded endowment gift, confirm the certificate application lists the IRA account holder's name, not a spouse, trust, or other party, to avoid a mismatch under 86 Ill. Adm. Code 1050.350.

Accountants and tax professionals

This is a useful example of getting Department confirmation in writing after an informal verbal answer wasn't enough to rely on -- the Legal Services Office route (a written GIL request) resolved a genuine gap between informal guidance and documented authority.

Common questions

Q: Does a QCD from an IRA qualify for the Illinois Gives Tax Credit?
A: Yes, as long as the contribution authorization certificate was issued in the name of the IRA account holder who makes the QCD.

Q: What documentation does a donor need for a QCD-funded Illinois Gives contribution?
A: The usual QCD documentation (Form 1099-R from the IRA trustee and written acknowledgment from the charity confirming date, amount, and no goods/services received) plus the contribution authorization certificate and the foundation's certificate of receipt required by the Illinois Gives Tax Credit Act.

Q: Whose name needs to be on the contribution authorization certificate?
A: The name of the person actually making the contribution -- for a QCD, that means the IRA account holder, since the distribution is treated as coming from and being reported by that person.

Q: Is informal verbal guidance from an IDOR representative enough to rely on?
A: This letter illustrates why not -- the donor's accountant got a verbal "yes" but no written support, and had to request a formal General Information Letter to get a documented, citable answer.

Citations and references

Statutes and regulations:

• 35 ILCS 60/170-10 (Illinois Gives Tax Credit Act)
• 86 Ill. Adm. Code 1050.350 (contribution must be made by the certificate holder)

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/income-tax/2025.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/income-tax/2025/it25-0012-gil.pdf

Original ruling text

IT 25-0012-GIL 10/16/2025 CREDITS
Contributions under the Illinois Gives Tax Credit Act may be made as qualified
charitable distributions from an individual retirement account. (This is a GIL).
October 16, 2025
NAME
COMPANY
ADDRESS
Dear NAME:
This letter is in response to your letter dated September 29, 2025, in which you
requested information. The Department issues two types of letter rulings. Private Letter
Rulings (“PLRs”) are issued by the Department in response to specific taxpayer inquiries
concerning the application of a tax statute or rule to a particular fact situation. A PLR is
binding on the Department, but only as to the taxpayer who is the subject of the request for
ruling and only to the extent the facts recited in the PLR are correct and complete. Persons
seeking PLRs must comply with the procedures for PLRs found in the Department’s
regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information
regarding the topic about which they have inquired. A GIL is not a statement of Department
policy and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may
access our website at https://tax.illinois.gov/ to review regulations, letter rulings and other
types of information relevant to your inquiry.
The nature of your inquiry and the information you have provided require that we respond
with a GIL. In your letter you have stated and made inquiry as follows:
I have a donor who is wanting to take advantage of the Illinois Gives Tax Credit, and
is wondering if they make their donation via QCD into a qualified endowment fund,
would they be eligible for the tax credit?
I think it would since the QCD benefit has to do with Federal Income Tax, and the IL
Gives Tax Credit is a state income tax benefit, but I'm just not able to find a solid
answer anywhere.
I reached out to our Audit firm:
NAME1, TITLE
COMPANY1| office phone/fax PHONE cell PHONE1
ADDRESS1

NAME/COMPANY
Page 2
October 16, 2025
Here is her response:
I wanted to provide with an update on this. We spoke to the Illinois
Department of Revenue and were verbally told that the QCD would qualify for
the credit, indicating that they didn't see anything stating it did not. However,
the agent was unable to provide us with anything in writing confirming this or
provide us with any other written proof. They recommended mailing a letter to
the below and requesting a written opinion. I would suggest that you reach out
to the Illinois Legal Services Office below with this specific question, so that
you would have a written backup going forward. Let me know if you have any
questions or if I can help further.
Legal Services Office 5-500
101 West Jefferson Springfield IL 62702
Citing:
35 /LCS 60/170-10
https://www.ilga.gov/Documents/legislation/ilcs/documents/003500600K1
70-10.htm
Bulletin FY 2025-14
https://tax.illinois.gov/research/publications/bulletins/fy-2025-14.html
Could you please provide me with a written opinion regarding whether a QCD would
qualify for the Illinois Gives Tax Credit? Thank you so much!
DEPARTMENT’S RESPONSE:
The Illinois Gives Tax Credit Act was enacted to allow taxpayers making
contributions to a qualified community foundation with a permanent endowment fund to
obtain an income tax credit equal to 25% of the endowment gift. 35 ILCS 60/170-10. A
taxpayer must apply to the Illinois Department of Revenue (IDOR) for a contribution
authorization certificate, and once the contribution is made, the qualified community
foundation will issue the taxpayer a certificate of receipt. Under rules adopted by IDOR, the
“contribution must be made by the person whose name appears on the contribution
authorization certificate. If a check or credit card is used to make a contribution, the name
that appears on the check or credit card must be the name of the person whose name
appears on the contribution authorization certificate.” 86 Ill. Admin. Code 1050.350.

NAME/COMPANY
Page 3
October 16, 2025
Qualified charitable distributions (QCDs) from an individual retirement account
may be made tax-free if sent directly to a qualified charity. IRS Publication 526. IRA
trustees will issue a Form 1099-R documenting the IRA distributions. Donors must obtain a
written acknowledgment from the charity showing the contribution date, amount and
confirmation that no goods or services were received.
As QCDs are made from an IRA and reported on the taxpayer’s federal income tax
return, they will be considered to meet the provisions of 86 Ill. Admin. Code 1050.350,
provided the contribution authorization certificate was issued in the name of the IRA
account holder.
I hope this information is helpful. If you require additional information, please visit
our website at https://tax.illinois.gov/ or contact the Department’s Taxpayer Information
Division at 800-732-8866.
Very truly yours,
Brian Fliflet
Deputy General Counsel
Legal Services Office
BF:slc