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| Public Act 103-0121 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Solicitation for Charity Act is amended by | ||||
changing Sections 1 and 4 as follows:
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(225 ILCS 460/1) (from Ch. 23, par. 5101)
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Sec. 1. Definitions. The following words and phrases as | ||||
used in this Act shall have the
following meanings unless a | ||||
different meaning is required by the context.
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(a) "Charitable organization" means any benevolent, | ||||
philanthropic, patriotic,
or eleemosynary person or one | ||||
purporting to be such which solicits and
collects funds for | ||||
charitable purposes and includes each local, county, or
area | ||||
division within this State of such charitable organization, | ||||
provided
such local, county, or area division has authority | ||||
and discretion to
disburse funds or property otherwise than by | ||||
transfer to any parent
organization.
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(b) "Contribution" means the promise or grant of any money | ||||
or property of any
kind or value, including the promise to pay, | ||||
except payments by union
members of an organization. Reference | ||||
to the dollar amount of
"contributions" in this Act means in | ||||
the case of promises to pay, or
payments for merchandise or | ||||
rights of any other description, the value of
the total amount | ||||
promised to be paid or paid for such merchandise or rights
and | ||
not merely that portion of the purchase price to be applied to | ||
a
charitable purpose. Contribution shall not include the | ||
proceeds from the
sale of admission tickets by any | ||
not-for-profit music or dramatic arts
organization which | ||
establishes, by such proof as the Attorney General may
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require, that it has received an exemption under Section | ||
501(c)(3) of the
Internal Revenue Code and which is organized | ||
and operated for the
presentation of live public performances | ||
of musical or theatrical works on
a regular basis. For | ||
purposes of this subsection, union member dues and
donated | ||
services shall not be deemed contributions.
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(c) "Person" means any individual, organization, group, | ||
association,
partnership, corporation, trust, or any | ||
combination of them.
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(d) "Professional fund raiser" means any person who for | ||
compensation or other
consideration, conducts, manages, or | ||
carries on any solicitation or fund raising drive or
campaign | ||
in this State or from this State or on behalf of a charitable
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organization residing within this State for the purpose of | ||
soliciting, receiving, or collecting
contributions for or on | ||
behalf of any charitable organization or any other
person, or | ||
who engages in the business of, or holds himself or herself out | ||
to persons
in this State as independently engaged in the | ||
business of soliciting, receiving, or collecting
contributions | ||
for such purposes. A bona fide director, officer, employee, or
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unpaid volunteer of a charitable organization shall not be | ||
deemed a
professional fund raiser unless the person is in a | ||
management position and
the majority of the individual's | ||
salary or other compensation is computed
on a percentage basis | ||
of funds to be raised, or actually raised.
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(e) "Professional fund raising consultant" means any
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person who is retained
by a charitable organization or trustee | ||
for a fixed fee or rate that is not
computed on a percentage of | ||
funds to be raised, or actually raised, under a
written | ||
agreement, to only plan, advise, consult, or prepare materials | ||
for a
solicitation of contributions in this State, but who | ||
does not manage,
conduct or carry on a fundraising campaign | ||
and who does not solicit
contributions or employ, procure, or | ||
engage any compensated person to
solicit contributions and who | ||
does not at any time have custody or control
of contributions. | ||
A volunteer, employee, or salaried officer of a
charitable | ||
organization or trustee maintaining a permanent establishment | ||
or
office in this State is not a professional fundraising | ||
consultant. An
attorney, investment counselor, or banker who | ||
advises an individual,
corporation, or association to make a | ||
charitable contribution is not a
professional fundraising | ||
consultant as a result of the advice.
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(f) "Charitable purpose" means any charitable, benevolent, | ||
philanthropic,
patriotic, or eleemosynary purpose.
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(g) "Charitable Trust" means any relationship whereby | ||
property is held
by a person for a charitable purpose.
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(h) "Education Program Service" means any activity which | ||
provides
information to the public of a nature that is not | ||
commonly known or facts
which are not universally regarded as | ||
obvious or as established by common
understanding and which | ||
informs the public of what it can or should do
about a | ||
particular issue.
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(i) "Primary Program Service" means the program service | ||
upon which an
organization spends more than 50% of its program | ||
service funds or the
program activity which represents the | ||
largest expenditure of funds in
the fiscal period.
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(j) "Professional solicitor" means any natural person who | ||
is employed or
retained for compensation by a professional | ||
fund raiser to solicit, receive, or collect
contributions for | ||
charitable purposes from persons in this State or from
this | ||
State or on behalf of a charitable organization residing | ||
within
this State.
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(k) "Program Service Activity" means the actual charitable | ||
program
activities of a charitable organization for which it | ||
expends its resources.
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(l) "Program Service Expense" means the expenses of | ||
charitable program
activity and not management expenses or | ||
fund raising expenses. In
determining Program Service Expense, | ||
management and fund raising expenses
may not be included.
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(m) "Public Safety Personnel Organization" means any | ||
person who uses any
of the words "officer", "police", | ||
"policeman", "policemen", "troopers",
"sheriff", "law | ||
enforcement", "fireman", "firemen", "paramedic", or
similar | ||
words in
its name or in conjunction with solicitations, or in | ||
the title or name of a magazine, newspaper, periodical, | ||
advertisement book, or any other medium of electronic or print | ||
publication, and is not
a governmental entity.
No organization | ||
may be a Public Safety Personnel Organization unless 80% or
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more of its voting members or trustees are active or retired | ||
police officers, police officers with disabilities, peace | ||
officers,
firemen, fire fighters, emergency medical | ||
technicians - ambulance,
emergency medical technicians - | ||
intermediate, emergency medical technicians -
paramedic, | ||
ambulance drivers, or other medical assistance or first aid
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personnel.
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(m-5) "Public Safety Personnel" includes police officers, | ||
peace officers,
firemen, fire fighters, emergency medical | ||
technicians - ambulance,
emergency medical technicians - | ||
intermediate, emergency medical technicians -
paramedic, | ||
ambulance drivers, and other medical assistance or first aid
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personnel.
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(n) "Trustee" means any person, individual, group of | ||
individuals,
association, corporation, not for profit | ||
corporation, or other legal entity
holding property for or | ||
solicited for any charitable purpose; or any
officer, | ||
director, executive director or other controlling persons of a
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corporation soliciting or holding property for a charitable | ||
purpose.
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(o) "Reviewed financial statements" means procedures | ||
performed on financial statements in accordance with | ||
statements on standards for accounting and review services | ||
issued by the American Institute of Certified Public | ||
Accountants, in which a certified public accountant obtains | ||
limited assurance as a basis for reporting whether the | ||
accountant is aware of any material modifications that should | ||
be made to the financial statements for them to be in | ||
accordance with the specified basis of accounting. This | ||
subsection is inoperative on and after January 1, 2029. | ||
(Source: P.A. 99-143, eff. 7-27-15.)
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(225 ILCS 460/4) (from Ch. 23, par. 5104)
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Sec. 4. Annual reporting for charities. | ||
(a) Every charitable organization registered pursuant to | ||
Section 2
of this Act which shall receive in any 12-month | ||
period ending upon its
established fiscal or calendar year | ||
contributions in excess of $500,000 $300,000
and every | ||
charitable organization whose fund raising functions are not
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carried on solely by staff employees or persons who are unpaid | ||
for such
services, if the organization shall receive in any | ||
12-month period ending
upon its established fiscal or calendar | ||
year contributions in excess of
$25,000, shall file a
written | ||
report with the Attorney General upon forms
prescribed by him | ||
or her, on or before June 30 of each year if its books are kept
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on a calendar basis, or within 6 months after the close of its | ||
fiscal year
if its books are kept on a fiscal year basis, which | ||
written report shall
include a
financial statement covering | ||
the immediately preceding 12-month period of
operation. Such | ||
financial statement shall include a balance sheet and
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statement of income and expense, and shall be consistent with | ||
forms
furnished by the Attorney General clearly setting forth | ||
the following:
gross receipts and gross income from all | ||
sources, broken down into total
receipts and income from each | ||
separate solicitation
project or source; cost of | ||
administration; cost of solicitation; cost of
programs | ||
designed to inform or educate the public; funds or properties
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transferred out of this State, with explanation as to | ||
recipient and
purpose; cost of fundraising; compensation paid | ||
to trustees; and total net
amount disbursed or dedicated for | ||
each major purpose,
charitable or otherwise. Such report shall | ||
also include a statement of any
changes in the information | ||
required to be contained in the registration
form filed on | ||
behalf of such organization. The report shall be signed by
the | ||
president or other authorized officer and the chief fiscal | ||
officer of
the organization who shall certify that the | ||
statements therein are true
and correct to the best of their | ||
knowledge, and shall be accompanied by
an opinion signed by an | ||
independent certified public accountant that the
financial | ||
statement therein fairly represents the financial operations | ||
of
the organization in sufficient detail to permit public | ||
evaluation of its
operations. Said opinion may be relied upon | ||
by the Attorney General.
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(b) Every organization registered pursuant to Section 2 of | ||
this Act
which shall receive in any 12-month period ending | ||
upon its established
fiscal or calendar year of any year
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contributions:
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(1) in excess of $15,000, but not in excess of | ||
$25,000, during a
fiscal
year shall file only a simplified | ||
summary financial statement disclosing only
the gross | ||
receipts, total disbursements, and assets on hand at the | ||
end of the
year on forms prescribed by the Attorney | ||
General; or
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(2) in excess of $25,000, but not in excess of | ||
$300,000, if it is not
required to submit a report under
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subsection (a) of this Section, shall
file a written | ||
report with the Attorney General upon forms prescribed by
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him, on or before June 30 of each year if its books are | ||
kept on a calendar
basis, or within 6 months after the | ||
close of its fiscal year if its books
are kept on a fiscal | ||
year basis, which shall include a financial statement
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covering the immediately preceding 12-month period of | ||
operation limited to
a statement of such organization's | ||
gross receipts from contributions, the
gross amount | ||
expended for charitable educational programs, other | ||
charitable
programs, management expense, and fund
raising | ||
expenses including a separate statement of the cost of any | ||
goods,
services, or admissions supplied as part of its | ||
solicitations, and the
disposition of the net proceeds | ||
from contributions, including compensation
paid to | ||
trustees, consistent with forms furnished by the Attorney | ||
General.
Such report shall also
include a statement of any | ||
changes in the information required to be
contained in the | ||
registration form filed on behalf of such organization.
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The report shall be signed by the president or other | ||
authorized officer and
the chief fiscal officer of the | ||
organization who shall certify that the
statements therein | ||
are true and correct to the best of their knowledge; or . | ||
(3) in excess of $300,000, but not in excess of | ||
$500,000, if it is not required to submit a report under | ||
subsection (a), shall file a written report with the | ||
Attorney General upon forms prescribed by the Attorney | ||
General, on or before June 30 of each year if its books are | ||
kept on a calendar basis, or within 6 months after the | ||
close of its fiscal year if its books are kept on a fiscal | ||
year basis, which written report shall include a financial | ||
statement covering the immediately preceding 12-month | ||
period of operation limited to a statement of such | ||
organization's gross receipts from contributions, the | ||
gross amount expended for charitable educational programs, | ||
other charitable programs, management expense, and fund | ||
raising expenses, including a separate statement of the | ||
cost of any goods, services, or admissions supplied as | ||
part of its solicitations, and the disposition of the net | ||
proceeds from contributions, including compensation paid | ||
to trustees, consistent with forms furnished by the | ||
Attorney General. Such report shall also include a | ||
statement of any changes in the information required to be | ||
contained in the registration form filed on behalf of such | ||
organization. The report shall be signed by the president | ||
or other authorized officer and the chief fiscal officer | ||
of the organization who shall certify that the statements | ||
therein are true and correct to the best of their | ||
knowledge and shall be accompanied by reviewed financial | ||
statements, including a report signed by an independent | ||
certified public accountant stating that the independent | ||
certified public accountant is not aware of any material | ||
modifications that should be made to the financial | ||
statements in order to permit public evaluation of its | ||
operations. The report may be relied upon by the Attorney | ||
General.
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(c) For any fiscal or calendar year of any organization | ||
registered
pursuant to Section 2 of this Act in which such | ||
organization would have
been exempt from registration pursuant | ||
to Section 3 of this Act if it had
not been so registered, or | ||
in which it did not solicit or receive
contributions, such | ||
organization shall file, on or before June 30 of each
year if | ||
its books are kept on a calendar basis, or within 6 months | ||
after
the close of its fiscal year if its books are kept on a | ||
fiscal year basis,
instead of the reports required by | ||
subdivisions (a) or (b) of this Section,
a statement certified | ||
under penalty of perjury by its president and chief fiscal
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officer stating the exemption and the facts upon which it is | ||
based or that
such organization did not solicit or receive | ||
contributions in such fiscal
year. The statement shall also | ||
include a statement of any
changes in the information required | ||
to be contained in the registration form
filed on behalf of | ||
such organization.
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(d) As an alternative means of satisfying the duties and | ||
obligations
otherwise imposed by this Section, any veterans | ||
organization
chartered or incorporated under federal law and | ||
any veterans organization
which is affiliated with, and | ||
recognized in the bylaws of, a
congressionally chartered or | ||
incorporated organization may, at its option,
annually file | ||
with the Attorney General the following documents:
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(1) A copy of its Form 990, as filed with the Internal | ||
Revenue Service.
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(2) Copies of any reports required to be filed by the | ||
affiliate with
the congressionally chartered or | ||
incorporated veterans organization, as well
as copies of | ||
any reports filed by the congressionally chartered or
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incorporated veterans organization with the government of | ||
the United States
pursuant to federal law.
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(3) Copies of all contracts entered into by the | ||
congressionally
chartered or incorporated veterans | ||
organization or its affiliate for
purposes of raising | ||
funds in this State, such copies to be filed with the
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Attorney General no more than 30 days after execution of | ||
the contracts.
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(e) As an alternative means of satisfying all of the | ||
duties and
obligations otherwise imposed by this Section, any | ||
person, pursuant
to a
contract with a charitable organization, | ||
a veterans organization, or an
affiliate described or referred | ||
to in subsection (d), who receives,
collects, holds, or | ||
transports as the agent of the organization or affiliate
for | ||
purposes of resale any used or second hand personal property, | ||
including,
but not limited to, household goods, furniture, or | ||
clothing donated to the
organization or affiliate may, at its | ||
option, annually file with the
Attorney General the following | ||
documents, accompanied by an annual filing fee
of $15:
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(1) A notarized report including the number of | ||
donations of personal
property it has received on behalf | ||
of the charitable organization, veterans
organization, or | ||
affiliate during the preceding year. For purposes of this
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report, the number of donations of personal property shall | ||
refer to the
number of stops or pickups made regardless of | ||
the number of items received
at each stop or pickup. The | ||
report may cover the person's fiscal year, in
which case | ||
it shall be filed with the Attorney General no later than | ||
90
days after the close of that fiscal year.
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(2) All contracts with the charitable organization, | ||
veterans
organization, or affiliate under which the person | ||
has acted as an agent for
the purposes listed above.
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(3) All contracts by which the person agreed to pay | ||
the charitable
organization, veterans organization, or | ||
affiliate a fixed amount for, or a
fixed percentage of the | ||
value of, each donation of used or second hand
personal | ||
property. Copies of all such contracts shall be filed no | ||
later
than 30 days after they are executed.
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(f) The Attorney General may seek appropriate equitable | ||
relief from a
court, enter into a binding nonjudicial | ||
settlement agreement, or or, in his discretion, cancel the | ||
registration
of any organization which fails to comply with | ||
subsection subdivision (a), (b), or (c) of
this Section within | ||
the time therein prescribed, or fails to furnish such
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additional information as is requested by the Attorney General | ||
within the
required time; except that the time may be extended | ||
by the Attorney General
for a period not to exceed 60 days upon | ||
a timely written
request and for
good cause stated. Unless | ||
otherwise stated herein, the Attorney General
shall, by
rule, | ||
set forth the standards used to determine whether a | ||
registration
shall be cancelled as authorized by this | ||
subsection. Such standards shall
be stated as precisely and | ||
clearly as practicable, to inform fully those
persons | ||
affected. Notice of such cancellation shall be mailed to the
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registrant at least 15 days before the effective date thereof.
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(g) The Attorney General in his or her discretion may, | ||
pursuant to rule,
accept executed copies of federal Internal | ||
Revenue returns and reports as a
portion of the foregoing
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annual reporting in the interest of minimizing paperwork, | ||
except there
shall be no substitute for the independent | ||
certified public accountant
audit opinion required by this | ||
Act.
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(h) The Attorney General after canceling the registration | ||
of any trust
or organization which fails to comply with
this
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Section within the time therein prescribed may by court | ||
proceedings, in
addition to all other relief, seek to
collect | ||
the assets and distribute such under court supervision to | ||
other
charitable purposes. | ||
(h-5) The Attorney General, within a binding nonjudicial | ||
settlement agreement, may accept a written assurance of | ||
discontinuance of any method, act, or practice alleged to be a | ||
violation of subsection (a), (b), or (c) from the person who | ||
has engaged in the method, act, or practice. The Attorney | ||
General may at any time reopen a matter in which an assurance | ||
of discontinuance is accepted for further proceedings if the | ||
Attorney General determines that reopening the matter is in | ||
the public interest. Evidence of a violation of an assurance | ||
of discontinuance is prima facie evidence of a violation of | ||
this Act in any subsequent proceeding brought by the Attorney | ||
General.
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(i) Every trustee, person, and organization required to | ||
file an annual
report shall pay a filing fee of $15 with each | ||
annual financial report filed
pursuant to this Section. If a | ||
proper and complete annual report is not timely
filed, a late | ||
filing fee of an additional $100 is imposed and shall be paid
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as a condition of filing a late report. Reports submitted | ||
without the proper
fee shall not be accepted for filing. | ||
Payment of the late filing fee and
acceptance by the Attorney | ||
General shall both be conditions of filing a late
report. All | ||
late filing fees shall be used to provide charitable trust
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enforcement and dissemination of charitable trust information | ||
to the public and
shall be maintained in a separate fund for | ||
such purpose known as the Illinois
Charity Bureau Fund.
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(j) There is created hereby a separate special fund in the | ||
State Treasury to
be known as the Illinois Charity Bureau | ||
Fund. That Fund shall be under the
control of the Attorney | ||
General, and the funds, fees, and penalties deposited
therein | ||
shall be used by the Attorney General to enforce the | ||
provisions of this
Act and to gather and disseminate | ||
information about charitable trustees and
organizations to the | ||
public. | ||
(k) The changes made to this Section by this amendatory | ||
Act of the 103rd General Assembly are inoperative on and after | ||
January 1, 2029.
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(Source: P.A. 100-201, eff. 8-18-17.)
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Section 99. Effective date. This Act takes effect January | ||
1, 2024.
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