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| Public Act 096-0488 |
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AN ACT concerning charitable organizations.
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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 Section 4 as follows:
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(225 ILCS 460/4) (from Ch. 23, par. 5104)
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Sec. 4.
(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 $300,000 $150,000
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, | ||||
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. Such | ||||
financial statement shall include a balance sheet and
statement | ||||
of income and expense, and shall be consistent with forms
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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
transferred out of this State, | ||
with explanation as to recipient and
purpose; cost of | ||
fundraising; compensation paid to trustees; and total net
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amount disbursed or dedicated for each major purpose,
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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
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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
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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 | ||
$150,000, 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
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
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
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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.
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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
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 proceeding 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
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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 or, in his discretion, cancel the | ||
registration
of any organization which fails to comply with | ||
subdivision (a), (b) or (c) of
this Section within the time | ||
therein prescribed, or fails to furnish such
additional | ||
information as is requested by the Attorney General within the
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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
registrant | ||
at least 15 days before the effective date thereof.
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(g) The Attorney General in his discretion may, pursuant to | ||
rule,
accept executed copies of federal Internal Revenue | ||
returns and reports as a
portion of the foregoing
annual | ||
reporting in the interest of minimizing paperwork, except there
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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
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charitable purposes.
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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
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Act and to gather and disseminate information about charitable | ||
trustees and
organizations to the public.
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(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
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