The Children’s Tuition Fund (CTF) can help make Timothy more accessible to more students while helping you reduce your tax liability.
Until recently, Illinois residents had little control over how their tax dollars were distributed. Today, however, you may choose to direct your individual or corporate state income tax liability by making a charitable donation to Timothy through CTF IL. A gift to Timothy through CTF IL saves you 75% on your Illinois return for up to $1,000,000 of your tax liability while also directly impacting Timothy students through needs-based financial assistance.
How does that work?
Let’s say you estimate your IL tax liability to be $10,000. So, you decide to secure tax credits of $7,500 by sending $10,000 to CTF IL. Ninety-five percent of your $10,000 to CTF IL, or $9,500, would go directly to Timothy to be distributed in the form of needs-based financial assistance. The following year, you would then receive a tax credit in the amount of $7,500 on your IL state return, reducing your IL tax liability and leaving you with a total out-of-pocket of only $2,500. That means your total return on investment is 3.8 x’s your out-of-pocket investment!
What about my other giving to Timothy?
Giving to CTF IL is a great way to reduce your tax liability and for individuals with the necessary liquidity, it can be a great supplement to your current giving to Timothy. In short, it’s a great way to make your giving go further. Here’s an example of how this might look, using the tax scenario described above.
Your Giving to Timothy for 2019 = $5,000
Your Out of Pocket to CTF IL for 2019 = $2,500
You Total Giving to Timothy with CTF IL Scholarships = $14,500