New Law Creates State Investment Pool to Help Illinois Nonprofits Boost Funding
Published: 9:56 am Wednesday, July 15, 2026
SPRINGFIELD — Eligible charitable organizations across Illinois will soon be able to invest their excess funds through a state-managed pool designed to increase investment earnings and lower administrative costs. This initiative comes from legislation signed into law by Gov. JB Pritzker.
Key Details:
- Non-Profit Investment Pool: Established through Senate Bill 2968, this pool is spearheaded by Illinois State Treasurer Michael Frerichs.
- Bipartisan Support: The initiative gained bipartisan approval in both chambers of the General Assembly and aims to help regional organizations secure long-term financial stability amid declining federal funding.
The program draws inspiration from the treasurer’s existing “Illinois Funds” program, a highly rated local government investment pool managing over $20 billion for about 1,500 public entities. During the 2025 fiscal year, this municipal fund generated more than $1 billion in earnings.
Frerichs emphasized the importance of nonprofits, stating that they “help families, strengthen neighborhoods, and meet critical needs in communities across Illinois.” He noted that this law provides essential support as federal funding cuts create uncertainty.
Legislative Support:
- Sen. Adriane Johnson: A Democrat from Buffalo Grove and Senate bill sponsor, highlighted that access to quality investment opportunities will enhance local services, including food pantry provisions and emergency shelter beds.
- Rep. Rita Mayfield: A Democrat from Waukegan, who carried the bill in the House, pointed out the critical financial backing this pool offers to organizations in underserved areas.
Program Launch: Scheduled for January 1, 2027, the program will be overseen by the treasurer’s office. Qualifying organizations will be able to deposit funds and utilize electronic payment processing, benefiting from the state’s investing scale.
Eligibility Requirements:
- Organizations must be based in Illinois and recognized as tax-exempt entities under sections 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code.
- Recent audited financial statements or regulatory filings must be submitted for state review to participate.
