TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 1050 ILLINOIS GIVES TAX CREDIT ACT
SECTION 1050.350 CERTIFICATES OF RECEIPT

 

Section 1050.350  Certificates of Receipt

 

a)         No qualified community foundation shall issue a certificate of receipt for any qualified contribution made by a taxpayer unless that qualified community foundation has been approved to issue certificates of receipt pursuant to Section 1050.300.

 

b)         No qualified community foundation shall issue a certificate of receipt for a contribution made by a taxpayer unless the taxpayer has been issued a contribution authorization certificate by the Department and the qualified community foundation has received a copy of the contribution authorization certificate.  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. If a contribution is made using stock or negotiable securities, the stock or negotiable securities must be in the name of, or held in the name of, the person whose name appears on the contribution authorization certificate.

 

EXAMPLE 1:  Individual A is the beneficiary of a trust. The trust obtains a contribution authorization certificate from the Department.  Individual A instructs the trust to make a contribution to a qualified community foundation in the amount of $1,000. The qualified community foundation must issue the certificate of receipt in the name of the trust.

 

EXAMPLE 2:  Individual A is the beneficiary of a trust. Individual A obtains a contribution authorization certificate from the Department. The trust makes a contribution to a qualified community foundation in the amount of $1,000. The qualified community foundation shall not issue a certificate of receipt to the trust because the contribution authorization certificate is in the name of Individual A. The qualified community foundation shall not issue the certificate of receipt to Individual A because the contribution was made by the trust. The individual must make the contribution to receive the certificate of receipt.

 

c)         If a taxpayer makes a contribution to a qualified community foundation within the timeframe by which the authorized contribution shall be made as provided in Section 1050.250, the qualified community foundation shall, within 30 business days after receipt of the contribution authorization certificate, issue to the taxpayer a written certificate of receipt.

 

d)         If a taxpayer fails to make all or a portion of a contribution within the timeframe by which such authorized contribution is required to be made, as provided in Section 1050.250, the taxpayer shall not be entitled to a certificate of receipt for that portion of the authorized contribution not made.

 

EXAMPLE:  A contribution authorization certificate in the amount of $1000 is issued by the Department to the taxpayer on April 1. The taxpayer has 10 business days from the date of the contribution authorization certificate to make the authorized contribution. On April 7, the taxpayer sends the contribution authorization certificate and a check in the amount of $500 to the qualified community foundation. The qualified community foundation receives the check on April 9. The qualified community foundation must provide a certificate of receipt to the taxpayer in the amount of $500 no later than May 21 (excluding weekends). On April 16, the taxpayer sends another check in the amount of $250 to the qualified community foundation. The qualified community foundation cannot issue the taxpayer a certificate of receipt for the $250 contribution because the payment was made more than 10 business days after the issuance of the contribution authorization certificate.

 

e)         Each certificate of receipt shall state:

 

1)         the name and address of the issuing qualified community foundation;

 

2)         the taxpayer's name and address;

 

3)         the taxpayer's identification number (SSN or FEIN);

 

4)         the date of each qualified contribution;

 

5)         the amount of each qualified contribution;

 

6)         the total qualified contribution amount; and

 

7)         the certificate number for the contribution authorization certificate provided to the qualified community foundation for the qualified contribution.

 

f)          Upon issuance of a certificate of receipt, the issuing qualified community foundation shall notify the Department within 10 business days that a certificate of receipts has been issued. The notification shall be made electronically and shall contain the following information:

 

1)         the taxpayer's name and address;

 

2)         the taxpayer's identification number (SSN or FEIN);

 

3)         the date of the issuance of a certificate of receipt;

 

4)         the date and amount of each qualified contribution;

 

5)         the total qualified contribution listed on such certificates;

 

6)         the issuing qualified community foundation's name and address; and

 

7)         the certificate number for the contribution authorization certificate provided to the qualified community foundation for the qualified contribution.

 

g)         Any portion of a contribution that a taxpayer fails to make by the date indicated on the contribution authorization certificate shall no longer be deducted from the cap prescribed in Section 170-10 [35 ILCS 60/170-25] (See Section 1050.200.) The Department will restore the amounts previously deducted after the last date has passed by which the qualified community foundation must notify the Department of the issuance of a certificate of receipt for any given contribution authorization certificate.

 

h)         Taxpayers may make, and qualified community foundations may receive, contributions in the form of cash, real property, stocks, and negotiable securities.

 

1)         If a contribution consists of real property, it must be accompanied by an appraisal performed by a licensed real estate appraiser within 60 days prior to making the contribution. The qualified community foundation will issue a certificate of receipt in the amount of the appraisal or the contribution authorization certificate, whichever is less.

 

2)         If a qualified community foundation receives a contribution in stock or negotiable securities, the qualified community foundation will issue a certificate of receipt in an amount equal to the average price between the highest and lowest quoted selling prices on the date of delivery as provided in IRS Publication 561.

 

i)          If a taxpayer makes a contribution to a qualified community foundation using a credit card and the credit card company charges a processing fee, the qualified community foundation shall issue a certificate of receipt to the taxpayer in the amount of the contribution, irrespective of which party bears the burden of the processing fee.

 

j)          Without the consent of the taxpayer, a qualified community foundation may not disclose to any person the contents of a taxpayer's contribution authorization certificate, the amount of contributions made by the taxpayer, nor the contents of a certificate of receipt issued to the taxpayer.

 

k)         If a taxpayer rescinds a contribution, the qualified community foundation shall notify the Department within 10 business days, and the certificate of receipt shall be canceled.