The Illinois General Assembly is debating HB5045 and SB2968, legislation in both the Illinois House and Illinois Senate that will allow nonprofit organizations to invest money through the Illinois Funds Program, gaining access to higher interest rate investment opportunities, while keeping money safe and liquid.
Background:
This is a bill by the office of the Illinois State Treasurer. If passed, potential benefits are aimed at small to medium-sized nonprofits (i.e., $1-10M) and could include increased liquidity and lower fees than a private bank. In exchange, nonprofits would have achieved slightly lower returns than they might have in an investment fund managed by a private bank. The Treasurer manages a similar program currently for units of local government in Illinois. Smaller nonprofits are more likely to be led by people of color, and this bill would be an extra tool for these organizations to access better investment opportunities they may not have been able to access on their own. The bill also specifies that any nonprofit seeking to invest in the pool must be in compliance with the Illinois Human Rights Act. The 2026 version of this bill reflects an agreement with the Governor's Office that addresses prior concerns.
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