Non-profits in Illinois face uncertainty due to unreliable federal government support. To address this, our office proposed the creation of a Non-Profit Investment Pool.  If signed into law, it will be an investment vehicle for Illinois non-profits and labor organizations to earn increased interest. Every dollar earned through interest income can be reinvested in our local communities.

The structure of the Non-Profit Investment Pool will be identical to the state’s Public Treasurers’ Investment Pool, which is the state’s local government investment pool, and was established in 1975. This fund contains over $20 billion in State and local funds from approximately 1,500 investment participants. This pool offers a better alternative for small to medium-sized local non-profits. Most of these non-profits currently use simple savings accounts and CDs with local banks, which generally lock in their money for longer periods of time or offer low interest. This legislation bridges this gap by providing a safe, liquid investment vehicle with better returns and lower fees than existing financial institutions. 

Impact or how it will be measured:

It will be a success if we can offer liquidity at higher rates of return than other money market funds and benchmarks.