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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
90_HB1211enr
225 ILCS 460/3 from Ch. 23, par. 5103
760 ILCS 55/4 from Ch. 14, par. 54
Amends the Solicitation for Charity Act and the
Charitable Trust Act. Exempts parent-teacher organizations
and other parent-sponsored organizations that are operated
for the purpose of providing support to school-related
activities for students from registering and filing reports
with the Attorney General under the Solicitation for Charity
Act. Also provides that the Charitable Trust Act (and its
registration and reporting requirements) do not apply to such
organizations. Effective immediately.
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1 AN ACT relating to charitable organizations and
2 activities, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Solicitation for Charity Act is amended
6 by changing Sections 2, 3, 4, 5, 6, 7, 17, and 21 and adding
7 Sections 22 and 23 as follows:
8 (225 ILCS 460/2) (from Ch. 23, par. 5102)
9 Sec. 2. (a) Every charitable organization, except as
10 otherwise provided in Section 3 of this Act, which solicits
11 or intends to solicit contributions from persons in this
12 State or which is located in this State, by any means
13 whatsoever shall, prior to any solicitation, file with the
14 Attorney General upon forms prescribed by him, a registration
15 statement, accompanied by a registration fee of $15, which
16 statement shall include the following certified information:
17 1. The name of the organization and the name or
18 names under which it intends to solicit contributions.
19 2. The names and addresses of the officers,
20 directors, trustees, and chief executive officer of the
21 organization.
22 3. The addresses of the organization and the
23 addresses of any offices in this State. If the
24 organization does not maintain a principal office, the
25 name and address of the person having custody of its
26 financial records.
27 4. Where and when the organization was legally
28 established, the form of its organization and its tax
29 exempt status.
30 5. The purpose for which the organization is
31 organized and the purpose or purposes for which the
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1 contributions to be solicited will be used.
2 6. The date on which the fiscal year of the
3 organization ends.
4 7. Whether the organization is authorized by any
5 other governmental authority to solicit contributions and
6 whether it is or has ever been enjoined by any court from
7 soliciting contributions.
8 8. The names and addresses of any professional fund
9 raisers who are acting or have agreed to act on behalf of
10 the organization.
11 9. Methods by which solicitation will be made.
12 10. Copies of contracts between charitable
13 organizations and professional fund raisers relating to
14 financial compensation or profit to be derived by the
15 professional fund raisers. Where any such contract is
16 executed after filing of registration statement, a copy
17 thereof shall be filed within 10 days of the date of
18 execution.
19 11. Board, group, or individual having final
20 discretion as to the distribution and use of
21 contributions received.
22 (b) The registration statement shall be signed by the
23 president or other authorized officer and the chief fiscal
24 officer of the organization.
25 (c) Such registration shall remain in effect unless it
26 is either cancelled as provided in this Act or withdrawn by
27 the organization.
28 (d) Every registered organization shall notify the
29 Attorney General within 10 days of any change in the
30 information required to be furnished by such organization
31 under paragraphs 1 through 11 of subdivision (a) of this
32 Section.
33 (e) In no event shall a registration of a charitable
34 organization continue, or be continued, in effect after the
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1 date such organization should have filed, but failed to file,
2 an annual report in accordance with the requirements of
3 Section 4 of this Act, and such organization shall not be
4 eligible to file a new registration until it shall have filed
5 the required annual report with the Attorney General. If such
6 report is subsequently filed and accepted by the Attorney
7 General such organization may file a new registration. If a
8 person, trustee, or organization fails to timely register or
9 maintain a registration of a trust or organization as
10 required by this Act or if its registration is cancelled as
11 provided in this Act, and if that trust or organization
12 remains in existence and by law is required to be registered,
13 in order to re-register or file a late registration a current
14 registration statement must be filed accompanied by financial
15 reports in the form required herein for all past years. In
16 all instances where re-registration and late registration are
17 allowed, the new registration materials must be filed,
18 accompanied by a penalty registration fee of $200.
19 (f) Subject to reasonable rules and regulations adopted
20 by the Attorney General, the register, registration
21 statements, annual reports, financial statements,
22 professional fund raisers' contracts, bonds, applications for
23 registration and re-registration, and other documents
24 required to be filed with the Attorney General shall be open
25 to public inspection.
26 Every person subject to this Act shall maintain accurate
27 and detailed books and records at the principal office of the
28 organization to provide the information required herein. All
29 such books and records shall be open to inspection at all
30 reasonable times by the Attorney General or his duly
31 authorized representative.
32 (g) Where any local, county or area division of a
33 charitable organization is supervised and controlled by a
34 superior or parent organization, incorporated, qualified to
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1 do business, or doing business within this State, such local,
2 county or area division shall not be required to register
3 under this Section if the superior or parent organization
4 files a registration statement on behalf of the local, county
5 or area division in addition to or as part of its own
6 registration statement. Where a registration statement has
7 been filed by a superior or parent organization as provided
8 in Section 2(g) of this Act, it shall file the annual report
9 required under Section 4 of this Act on behalf of the local,
10 county or area division in addition to or as part of its own
11 report, but the accounting information required under Section
12 4 of this Act shall be set forth separately and not in
13 consolidated form with respect to every local, county or area
14 division which raises or expends more than $4,000.
15 (h) The Attorney General may make rules of procedure and
16 regulations necessary for the administration of this Act.
17 Copies of all such rules of procedure and regulations and of
18 all changes therein, duly certified by the Attorney General,
19 shall be filed in the office of the Secretary of State.
20 (i) If a person, organization, or trustee fails to
21 register or if maintain registration of a trust or
22 organization is cancelled as provided in this Act Section,
23 the person, organization or trustee is subject to injunction,
24 to removal, to account, and to appropriate other relief
25 before the circuit court exercising chancery jurisdiction. In
26 addition to any other relief granted under this Act, the
27 court shall impose a civil penalty of not less than $500 nor
28 more than $1,000 against each and every trustee,
29 organization, and person who fails to register or who fails
30 to maintain a registration required under this Act. The
31 collected penalty funds shall be used for charitable trust
32 enforcement and for providing charitable trust information to
33 the public.
34 (Source: P.A. 87-755.)
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1 (225 ILCS 460/3) (from Ch. 23, par. 5103)
2 Sec. 3. (a) Upon initial filing of a registration
3 statement pursuant to Section 2 of this Act and notification
4 by the Attorney General of his determination that the
5 organizational purposes or circumstances specified in this
6 paragraph for exemption are actual and genuine, the following
7 entities shall be exempt from all the report filing
8 provisions and requirements of this Act, except for the
9 requirements set forth in Section 2 of this Act:
10 1. A corporation sole or other religious
11 corporation, trust or organization incorporated or
12 established for religious purposes, nor to any agency or
13 organization incorporated or established for charitable,
14 hospital or educational purposes and engaged in
15 effectuating one or more of such purposes, that is
16 affiliated with, operated by, or supervised or controlled
17 by a corporation sole or other religious corporation,
18 trust or organization incorporated or established for
19 religious purposes, nor to other religious agencies or
20 organizations which serve religion by the preservation of
21 religious rights and freedom from persecution or
22 prejudice or by fostering religion, including the moral
23 and ethical aspects of a particular religious faith.
24 2. Any charitable organization which does not
25 intend to solicit and receive and does not actually
26 receive contributions in excess of $15,000 $10,000 during
27 any 12 month period ending December 31 of any year,
28 provided all of its fund raising functions are carried on
29 by persons who are unpaid for such services. However, if
30 the gross contributions received by such charitable
31 organization during any 12 month period ending December
32 31 of any year shall be in excess of $15,000 $10,000, it
33 shall file reports as required under this Act and the
34 provisions of this Act shall apply.
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1 (b) The following persons shall not be required to
2 register with the Attorney General:
3 1. The University of Illinois, Southern Illinois
4 University, Eastern Illinois University, Illinois State
5 Normal University, Northern Illinois University, Western
6 Illinois University, all educational institutions that
7 are recognized by the State Board of Education or that
8 are accredited by a regional accrediting association or
9 by an organization affiliated with the National
10 Commission on Accrediting, any foundation having an
11 established identity with any of the aforementioned
12 educational institutions, any other educational
13 institution confining its solicitation of contributions
14 to its student body, alumni, faculty and trustees, and
15 their families, or a library established under the laws
16 of this State, provided that the annual financial report
17 of such institution or library shall be filed with the
18 State Board of Education, Governor, Illinois State
19 Library, County Library Board or County Board, as
20 provided by law.
21 2. Fraternal, patriotic, social, educational,
22 alumni organizations and historical societies when
23 solicitation of contributions is confined to their
24 membership. This exemption shall be extended to any
25 subsidiary of a parent or superior organization exempted
26 by Sub-paragraph 2 of Paragraph (b) of Section 3 of this
27 Act where such solicitation is confined to the membership
28 of the subsidiary, parent or superior organization.
29 3. Persons requesting any contributions for the
30 relief or benefit of any individual, specified by name at
31 the time of the solicitation, if the contributions
32 collected are turned over to the named beneficiary, first
33 deducting reasonable expenses for costs of banquets, or
34 social gatherings, if any, provided all fund raising
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1 functions are carried on by persons who are unpaid,
2 directly or indirectly, for such services.
3 4. Any bona fide union, bona fide political
4 organization or bona fide political action committee,
5 which does not solicit funds for a charitable purpose.
6 5. Any charitable organization receiving an
7 allocation from an incorporated community chest or united
8 fund, provided such chest or fund is complying with the
9 provisions of this Act relating to registration and
10 filing of annual reports with the Attorney General, and
11 provided such organization does not actually receive, in
12 addition to such allocation, contributions in excess of
13 $4,000 during any 12 month period ending June 30th of any
14 year, and provided further that all the fund raising
15 functions of such organization are carried on by persons
16 who are unpaid for such services. However, if the gross
17 contributions other than such allocation received by such
18 charitable organization during any 12 month period ending
19 June 30th of any year shall be in excess of $4,000, it
20 shall within 30 days after the date it shall have
21 received such contributions in excess of $4,000 register
22 with the Attorney General as required by Section 2.
23 6. A bona fide organization of volunteer firemen,
24 or a bona fide auxiliary or affiliate of such
25 organization, provided all its fund raising activities
26 are carried on by members of such an organization or an
27 affiliate thereof and such members receive no
28 compensation, directly or indirectly, therefor.
29 7. Any charitable organization operating a nursery
30 for infants awaiting adoption providing that all its fund
31 raising activities are carried on by members of such an
32 organization or an affiliate thereof and such members
33 receive no compensation, directly or indirectly therefor.
34 8. Any corporation established by the Federal
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1 Congress that is required by federal law to submit annual
2 reports of its activities to Congress containing itemized
3 accounts of all receipts and expenditures after being
4 duly audited.
5 9. Any boys' club which is affiliated with the
6 Boys' Club of America, a corporation chartered by
7 Congress; provided, however, that such an affiliate
8 properly files the reports required by the Boys' Club of
9 America and that the Boys' Club of America files with the
10 Government of the United States the reports required by
11 its federal charter.
12 10. Any veterans organization chartered or
13 incorporated under federal law and any veterans
14 organization which is affiliated with, and recognized in
15 the bylaws of, a congressionally chartered or
16 incorporated veterans organization; provided, however,
17 that the affiliate properly files the reports required by
18 the congressionally chartered or incorporated veterans
19 organization, that the congressionally chartered or
20 incorporated veterans organization files with the
21 government of the United States the reports required by
22 its federal charter, and that copies of such federally
23 required reports are filed with the Attorney General.
24 11. Any parent-teacher organization that is
25 controlled by teachers and parents of children attending
26 a particular public or private school for which the
27 organization is named and solicits contributions for the
28 benefit of that particular school; provided that:
29 (i) the school is specified by name at the
30 time the solicitation is made;
31 (ii) all of the contributions are turned over
32 to the school, after first deducting reasonable
33 expenses for fundraising and parent-teacher
34 activities;
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1 (iii) all fundraising functions are carried on
2 by persons who are not paid, either directly or
3 indirectly, for their fundraising services;
4 (iv) the total contributions, less reasonable
5 fundraising expenses, do not exceed $50,000 in any
6 calendar year;
7 (v) the organization provides the school at
8 least annually with a complete accounting of all
9 contributions received; and
10 (vi) the governing board of the school
11 annually certifies to the Attorney General that the
12 parent-teacher organization has provided the school
13 with a full accounting and that the organization has
14 provided benefits and contributions to the school.
15 (Source: P.A. 87-755.)
16 (225 ILCS 460/4) (from Ch. 23, par. 5104)
17 Sec. 4. (a) Every charitable organization registered
18 pursuant to Section 2 of this Act which shall receive in any
19 12 month period ending upon its established fiscal or
20 calendar year contributions in excess of $150,000 $100,000,
21 and every charitable organization whose fund raising
22 functions are not carried on solely by staff employees or
23 persons who are unpaid for such services, if the organization
24 shall receive in any 12 month period ending upon its
25 established fiscal or calendar year contributions in excess
26 of $25,000, shall file a written report with the Attorney
27 General upon forms prescribed by him, on or before June 30 of
28 each year if its books are kept on a calendar basis, or
29 within 6 months after the close of its fiscal year if its
30 books are kept on a fiscal year basis, which written report
31 shall include a financial statement covering the immediately
32 preceding 12 month period of operation. Such financial
33 statement shall include a balance sheet and statement of
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1 income and expense, and shall be consistent with forms
2 furnished by the Attorney General clearly setting forth the
3 following: gross receipts and gross income from all sources,
4 broken down into total receipts and income from each separate
5 solicitation project or source; cost of administration; cost
6 of solicitation; cost of programs designed to inform or
7 educate the public; funds or properties transferred out of
8 this State, with explanation as to recipient and purpose;
9 cost of fundraising; compensation paid to trustees; and total
10 net amount disbursed or dedicated for each major purpose,
11 charitable or otherwise. Such report shall also include a
12 statement of any changes in the information required to be
13 contained in the registration form filed on behalf of such
14 organization. The report shall be signed by the president or
15 other authorized officer and the chief fiscal officer of the
16 organization who shall certify that the statements therein
17 are true and correct to the best of their knowledge, and
18 shall be accompanied by an opinion signed by an independent
19 certified public accountant that the financial statement
20 therein fairly represents the financial operations of the
21 organization in sufficient detail to permit public evaluation
22 of its operations. Said opinion may be relied upon by the
23 Attorney General.
24 (b) Every organization registered pursuant to Section 2
25 of this Act which shall receive in any 12 month period ending
26 upon its established fiscal or calendar year of any year
27 contributions in excess of $15,000, but not in excess of
28 $150,000, if it is not required to submit a report under
29 subsection (a) of this Section, $100,000 and all of whose
30 fund raising functions are carried on by persons who are
31 unpaid for such services shall file a written report with the
32 Attorney General upon forms prescribed by him, on or before
33 June 30 of each year if its books are kept on a calendar
34 basis, or within 6 months after the close of its fiscal year
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1 if its books are kept on a fiscal year basis, which shall
2 include a financial statement covering the immediately
3 preceding 12-month period of operation limited to a statement
4 of such organization's gross receipts from contributions, the
5 gross amount expended for charitable educational programs,
6 other charitable programs, management expense, and fund
7 raising expenses including a separate statement of the cost
8 of any goods, services or admissions supplied as part of its
9 solicitations, and the disposition of the net proceeds from
10 contributions, including compensation paid to trustees,
11 consistent with forms furnished by the Attorney General.
12 Such report shall also include a statement of any changes in
13 the information required to be contained in the registration
14 form filed on behalf of such organization. The report shall
15 be signed by the president or other authorized officer and
16 the chief fiscal officer of the organization who shall
17 certify that the statements therein are true and correct to
18 the best of their knowledge.
19 (c) For any fiscal or calendar year of any organization
20 registered pursuant to Section 2 of this Act in which such
21 organization would have been exempt from registration
22 pursuant to Section 3 of this Act if it had not been so
23 registered, or in which it did not solicit or receive
24 contributions, such organization shall file, on or before
25 June 30 of each year if its books are kept on a calendar
26 basis, or within 6 months after the close of its fiscal year
27 if its books are kept on a fiscal year basis, instead of the
28 reports required by subdivisions (a) or (b) of this Section,
29 a statement certified under penalty of perjury by report in
30 the form of an affidavit of its president and chief fiscal
31 officer stating the exemption and the facts upon which it is
32 based or that such organization did not solicit or receive
33 contributions in such fiscal year. The statement affidavit
34 shall also include a statement of any changes in the
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1 information required to be contained in the registration form
2 filed on behalf of such organization.
3 (d) As an alternative means of satisfying the duties and
4 obligations otherwise imposed by this Section Act, any
5 veterans organization chartered or incorporated under federal
6 law and any veterans organization which is affiliated with,
7 and recognized in the bylaws of, a congressionally chartered
8 or incorporated organization may, at its option, annually
9 file with the Attorney General the following documents:
10 (1) A copy of its Form 990, as filed with the
11 Internal Revenue Service.
12 (2) Copies of any reports required to be filed by
13 the affiliate with the congressionally chartered or
14 incorporated veterans organization, as well as copies of
15 any reports filed by the congressionally chartered or
16 incorporated veterans organization with the government of
17 the United States pursuant to federal law.
18 (3) Copies of all contracts entered into by the
19 congressionally chartered or incorporated veterans
20 organization or its affiliate for purposes of raising
21 funds in this State, such copies to be filed with the
22 Attorney General no more than 30 days after execution of
23 the contracts.
24 (e) As an alternative means of satisfying all of the
25 duties and obligations otherwise imposed by this Section Act,
26 any person, pursuant to a contract with a charitable
27 organization, a veterans organization or an affiliate
28 described or referred to in subsection (d), who receives,
29 collects, holds or transports as the agent of the
30 organization or affiliate for purposes of resale any used or
31 second hand personal property, including but not limited to
32 household goods, furniture or clothing donated to the
33 organization or affiliate may, at its option, annually file
34 with the Attorney General the following documents,
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1 accompanied by an annual filing fee of $15:
2 (1) A notarized report including the number of
3 donations of personal property it has received on behalf
4 of the charitable organization, veterans organization or
5 affiliate during the proceeding year. For purposes of
6 this report, the number of donations of personal property
7 shall refer to the number of stops or pickups made
8 regardless of the number of items received at each stop
9 or pickup. The report may cover the person's fiscal
10 year, in which case it shall be filed with the Attorney
11 General no later than 90 days after the close of that
12 fiscal year.
13 (2) All contracts with the charitable organization,
14 veterans organization or affiliate under which the person
15 has acted as an agent for the purposes listed above.
16 (3) All contracts by which the person agreed to pay
17 the charitable organization, veterans organization or
18 affiliate a fixed amount for, or a fixed percentage of
19 the value of, each donation of used or second hand
20 personal property. Copies of all such contracts shall be
21 filed no later than 30 days after they are executed.
22 (f) The Attorney General may seek appropriate equitable
23 relief from a court or, in his discretion, cancel the
24 registration of any organization which fails to comply with
25 subdivision (a), (b) or (c) of this Section within the time
26 therein prescribed, or fails to furnish such additional
27 information as is requested by the Attorney General within
28 the required time; except that the time may be extended by
29 the Attorney General for a period not to exceed 60 days 3
30 months upon a timely written request and for good cause
31 stated. Unless otherwise stated herein, the Attorney General
32 shall, by rule, set forth the standards used to determine
33 whether a registration shall be cancelled as authorized by
34 this subsection. Such standards shall be stated as precisely
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1 and clearly as practicable, to inform fully those persons
2 affected. Notice of such cancellation shall be mailed to the
3 registrant at least 15 days before the effective date
4 thereof.
5 (g) The Attorney General in his discretion may, pursuant
6 to rule, accept executed copies of federal Internal Revenue
7 returns and reports as a portion of the foregoing annual
8 reporting in the interest of minimizing paperwork, except
9 there shall be no substitute for the independent certified
10 public accountant CPA audit opinion required by this Act.
11 (h) The Attorney General after canceling the
12 registration of any trust or organization which fails to
13 comply with subsections (a), (b) or (c) of this Section
14 within the time therein prescribed may by court proceedings,
15 in addition to all other relief, seek to collect the assets
16 and distribute such under court supervision to other
17 charitable purposes.
18 (i) Every trustee, person, and organization required to
19 file an annual report shall pay a filing fee of $15 with each
20 annual financial report filed pursuant to this Section. If a
21 proper and complete annual report is not timely filed, a late
22 filing fee of an additional $100 is imposed and shall be paid
23 as a condition of filing a late report. Reports submitted
24 without the proper fee shall not be accepted for filing.
25 Payment of the late filing fee and acceptance by the Attorney
26 General shall both be conditions of filing a late report.
27 All late filing fees shall be used to provide charitable
28 trust enforcement and dissemination of charitable trust
29 information to the public and shall be maintained in a
30 separate fund for such purpose known as the Illinois Charity
31 Bureau Fund.
32 (j) There is created hereby a separate special fund in
33 the State Treasury to be known as the Illinois Charity Bureau
34 Fund. That Fund shall be under the control of the Attorney
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1 General, and the funds, fees, and penalties deposited therein
2 shall be used by the Attorney General to enforce the
3 provisions of this Act and to gather and disseminate
4 information about charitable trustees and organizations to
5 the public.
6 (Source: P.A. 89-626, eff. 8-9-96.)
7 (225 ILCS 460/5) (from Ch. 23, par. 5105)
8 Sec. 5. Any charitable organization, trustee, person,
9 professional fund raiser or professional solicitor, which or
10 who solicits contributions in this State, but does not
11 maintain an office within the State or cannot be located
12 within the State shall be subject to service of process, as
13 follows:
14 (a) By service thereof on its registered agent within
15 the State, or if there be no such registered agent, then upon
16 the person who has been designated in the registration
17 statement as having custody of books and records within this
18 State; where service is effected upon the person so
19 designated in the registration statement a copy of the
20 process shall, in addition, be mailed to the registrant's
21 last known address;
22 (b) When any corporate person has solicited
23 contributions in this State, but maintains no office within
24 the State, has no registered agent within the State, and no
25 designated person having custody of its books and records
26 within the State, or when a registered agent or person having
27 custody of its books and records within the State cannot be
28 found as shown by the return of the sheriff of the county in
29 which such registered agent or person having custody of books
30 and records has been represented by the charitable
31 organization or person as maintaining an office, service may
32 be made by delivering to and leaving with the Secretary of
33 State, or with any deputy or clerk in the corporation
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1 department of his office, three copies thereof;
2 (c) Following service upon the Secretary of State the
3 provisions of law relating to service of process on foreign
4 corporations shall thereafter govern;
5 (d) Long arm service in accordance with law;
6 (e) The solicitation of any contribution within this
7 State by any charitable organization or any person shall be
8 deemed to be their agreement that any process against it or
9 him which is so served in accordance with the provisions of
10 this Section shall be of the same legal force and effect as
11 if served personally within this State and that the courts of
12 this State shall have personal jurisdiction over such
13 organizations, persons and trustees;
14 (f) Venue over persons required to be registered under
15 this Act shall be proper in any county where the Attorney
16 General accepts and maintains the list of registrations. In
17 furtherance of judicial economy, actions filed for violation
18 of this Act may name multiple trustees, trusts, and
19 organizations in a single or joint action where those joined
20 have each engaged in similar conduct in violation of this Act
21 or where similar relief is sought against those defendants
22 for violation of this Act.
23 (Source: P.A. 87-755.)
24 (225 ILCS 460/6) (from Ch. 23, par. 5106)
25 Sec. 6. (a) No person shall act as a professional fund
26 raiser or allow a professional fund raiser entity he owns,
27 manages or controls to act for a charitable organization
28 required to register pursuant to Section 2 of this Act, or
29 for any organization as described in Section 3 of this Act
30 before he has registered himself or the entity with the
31 Attorney General or after the expiration or cancellation of
32 such registration or any renewal thereof. Applications for
33 registration and re-registration shall be in writing, under
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1 oath, in the form prescribed by the Attorney General. A
2 registration fee of $100 shall be paid with each registration
3 and upon each re-registration. Registration and
4 re-registration can proceed only if all financial reports
5 have been filed in proper form and all fees have been paid in
6 full. If the applicant intends to or does take control or
7 possession of charitable funds, the applicant shall at the
8 time of making application, file with, and have approved by,
9 the Attorney General a bond in which the applicant shall be
10 the principal obligor, in the sum of $10,000, with one or
11 more corporate sureties licensed to do business in this State
12 whose liability in the aggregate will at least equal such
13 sum. The bond shall run to the Attorney General for the use
14 of the State and to any person who may have a cause of action
15 against the obligor of the bond for any malfeasance or
16 misfeasance in the conduct of such solicitation; provided,
17 that the aggregate limit of liability of the surety to the
18 State and to all such persons shall, in no event, exceed the
19 sum of such bond. Registration or re-registration when
20 effected shall be for a period of one year, or a part
21 thereof, expiring on the 30th day of June, and may be renewed
22 upon written application, under oath, in the form prescribed
23 by the Attorney General and the filing of the bond for
24 additional one year periods. Every professional fund raiser
25 required to register pursuant to this Act shall file an
26 annual written report with the Attorney General containing
27 such information as he may require by rule. Certification
28 shall be required for only information within the
29 professional fund raiser's knowledge.
30 (b) Upon filing a complete registration statement, a
31 professional fund raiser shall be given a registration number
32 and shall be considered registered. If the materials
33 submitted are determined to be inaccurate or incomplete, the
34 Attorney General shall notify the professional fund raiser of
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1 his findings and the defect and that within 30 days his
2 registration will be cancelled unless the defect is cured
3 within said time.
4 (c) Every professional fund raiser registered under this
5 Act who takes possession or control of charitable funds
6 directly, indirectly, or through an escrow shall submit a
7 full written accounting to the charitable organization of all
8 funds it or its agents collected on behalf of the charitable
9 organization during the 6 month period ended June 30 of each
10 year, and file a copy of the accounting with the Attorney
11 General. The accounting shall be in writing under oath and
12 be signed and made on forms as prescribed by the Attorney
13 General and shall be filed by the following September 30 of
14 each year; however, within the time prescribed, and for good
15 cause, the Attorney General may grant a 60 day extension of
16 the due date.
17 (d) Every professional fund raiser registered pursuant
18 to this Act shall also file calendar year written financial
19 reports with the Attorney General containing such information
20 as he may require, on forms prescribed by him, as well as
21 separate financial reports for each separate fund raising
22 campaign conducted. The written report shall be filed under
23 oath on or before April 30 of the following calendar year and
24 be signed and verified under penalty of perjury within the
25 time prescribed. An annual report fee of $25 shall be paid to
26 the Attorney General with the filing of that report. If the
27 report is not timely filed, a late filing fee shall result
28 and must be paid prior to re-registration. The late filing
29 fee shall be calculated at $200 for each and every separate
30 fundraising campaign conducted during the report year. For
31 good cause, the Attorney General may grant a 30 day extension
32 of the due date, in which case a late filing fee shall not be
33 imposed until the expiration of the extension period. A copy
34 of the report shall also be given to the charitable
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1 organization by the due date of filing. A professional fund
2 raiser shall only be required to verify information actually
3 available to the professional fund raiser, but in any event
4 an annual report must be timely filed.
5 (e) No person convicted of a felony may register as a
6 professional fund raiser, and no person convicted of a
7 misdemeanor involving fiscal wrongdoing, breach of fiduciary
8 duty or a violation of this Act may register as a
9 professional fund raiser for a period of 5 years from the
10 date of the conviction or the date of termination of the
11 sentence or probation, if any, whichever is later. This
12 subsection shall not apply to charitable organizations that
13 have as their primary purpose the rehabilitation of criminal
14 offenders, the reintegration of criminal offenders into
15 society, the improvement of the criminal justice system or
16 the improvement of conditions within penal institutions.
17 (f) A professional fund raiser may not cause or allow
18 independent contractors to act on its behalf in soliciting
19 charitable contributions other than registered professional
20 solicitors. A professional fund raiser must maintain the
21 names, addresses and social security numbers of all of its
22 professional solicitors for a period of at least 2 years.
23 (g) Any person who knowingly violates the provisions of
24 subsections (a), (e) and (f) of this Section is guilty of a
25 Class 4 felony. Any person who fails after being given
26 notice of delinquency to file written financial reports
27 required by subsections (c) and (d) of this Section which is
28 more than 2 months past its due date is guilty of a Class A
29 misdemeanor.
30 (h) Any person who violates any of the provisions of
31 this Section shall be subject to civil penalties of up to
32 $5,000 for each violation and shall not be entitled to keep
33 or receive fees, salaries, commissions or any compensation as
34 a result or on account of the solicitations or fund raising
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1 campaigns, and at the request of the Attorney General or the
2 charitable organization, a court may order that such be
3 forfeited and paid toward and used for a charitable purpose
4 as the court in its discretion determines is appropriate or
5 placed in the Illinois Charity Bureau Fund.
6 (Source: P.A. 87-755.)
7 (225 ILCS 460/7) (from Ch. 23, par. 5107)
8 Sec. 7. (a) All contracts entered into by a
9 professional fund raiser to conduct a fundraising campaign
10 for a charitable purpose or charitable organization must be
11 in writing in conformity with this Act between professional
12 fund raisers and charitable trustees and organizations shall
13 be in writing. A true and correct copy of each contract shall
14 be filed by the professional fund raiser and the charitable
15 trustee or organization organizations who is party thereto
16 with the Attorney General prior to the conduct of a
17 fundraising campaign under the contract and annually by the
18 professional fund raiser at and with each reregistration its
19 implementation. Each professional fund raiser shall pay an
20 annual filing fee of $25 for each active contract filed or on
21 file under this Act. The fee shall be paid at initial and
22 annual re-registration. True and correct copies of such
23 contracts shall be kept on file in the offices of the
24 charitable organization and the professional fund raiser
25 during the term thereof and until the expiration of a period
26 of 3 years subsequent to the date the solicitation of
27 contributions provided for therein actually terminates. Any
28 person who violates the provisions of this Section is guilty
29 of a Class A misdemeanor.
30 (b) Any contract between a trust or charitable
31 organization and a professional fund raiser must contain an
32 estimated reasonable budget disclosing the target amount of
33 funds to be raised over the contract period, the type and
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1 amount of projected expenses related thereto, and the amount
2 projected to be paid to the charitable organization. In
3 addition, the contract shall disclose the period of its
4 duration, the geographic scope for fundraising, describe the
5 methods of fundraising to be employed and provide assurance
6 of record keeping and accountability. If the contract
7 provides that the professional fund raiser will retain or be
8 paid a stated percentage of the gross amount raised, an
9 estimate of the target gross amount to be raised and to be
10 paid to charity shall be stated in the contract. If the
11 contract provides for payment on an hourly rate for fund
12 raising, the total estimated hourly amount, as well as the
13 estimated number of hours to be spent in fund raising, shall
14 be stated.
15 (c) All professional fund raiser contracts shall be
16 approved and accepted by a majority of the charitable
17 organization's trustees, and in the case of a not for profit
18 charitable corporation, by its president and at least one
19 member of its Board of Directors, and the contract shall
20 recite said approval and acceptance by certification by a
21 trustee or the corporation's president.
22 (d) All professional fund raiser contracts shall
23 disclose the amounts of all commissions, salaries and fees
24 charged by the fund raiser, its agents, employees and
25 solicitors and the method used for computing such.
26 (e) If the professional fund raiser, its agents,
27 solicitors or employees or members of the families thereof
28 own an interest in, manage or are a supplier or vendor of
29 fund raising goods or services, the relationship shall be
30 fully disclosed in the contract, as well as the method of
31 determining the related supplier's or vendor's charges.
32 (f) If the professional fund raiser, in the course of
33 raising funds, is also providing charitable education program
34 services to the public, the charitable organization shall
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1 approve or provide to the fund raiser a written text of all
2 public educational program materials to be disseminated when
3 fund raising, copies of which shall be maintained by the
4 parties.
5 (g) Any person who knowingly violates any provision of
6 this Section may be subject to injunctive relief and removal
7 from office. Failure to file a contract and pay the
8 prescribed annual contract filing fee prior to conducting a
9 fund raiser for an organization shall in addition to other
10 relief subject the professional fund raiser to a late filing
11 fee of $1,000 for each contract not timely filed.
12 (h) A professional fund raiser or professional solicitor
13 that materially fails to comply with this Section shall not
14 be entitled to collect or retain any compensation,
15 commission, fee or salary received in any campaign in which
16 the violation occurs. Upon application, by the Attorney
17 General to a court of competent jurisdiction, the court may
18 apply equitable considerations in enforcing this Section.
19 (Source: P.A. 87-755.)
20 (225 ILCS 460/17) (from Ch. 23, par. 5117)
21 Sec. 17. In any solicitation to the public for a
22 charitable organization by a professional fund raiser or
23 professional solicitor:
24 (a) The public member shall be promptly informed by
25 statement in verbal communications and by clear and
26 unambiguous disclosure in written materials that the
27 solicitation is being made by a paid professional fund raiser
28 or solicitor if such disclosure is requested by the person
29 solicited. The fund raiser, solicitor, and materials used
30 shall also provide the professional fund raiser's name and a
31 statement that contracts and reports regarding the charity
32 are on file with the Illinois Attorney General and
33 additionally, in verbal communications, the solicitor's true
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1 name must be provided.
2 (b) If the professional fund raiser employs or uses a
3 contract which provides that it will be paid or retain a
4 certain percentage of the gross amount of each contribution
5 or shall be paid an hourly rate for solicitation, or the
6 contract provides the charity will receive a fixed amount or
7 a fixed percentage of each contribution, the professional
8 fund raiser and person soliciting shall disclose to persons
9 being solicited the percentage amount retained or hourly rate
10 paid to the professional fund raiser and solicitor pursuant
11 to the contract, and the amount or the percentage to be
12 received by the charitable organization from each
13 contribution, if such disclosure is requested by the person
14 solicited.
15 (c) Any person or professional fund raiser, professional
16 solicitor soliciting charitable contributions from the public
17 on behalf of a public safety personnel organization shall not
18 misrepresent that they are in fact a law enforcement person,
19 firefighter, or member of the organization for whom the
20 contributions are being raised and if requested by the person
21 solicited they shall promptly provide their actual name, the
22 exact legal name of the organization with which they are
23 employed and its correct address, as well as, the exact name
24 of the charitable organization.
25 (Source: P.A. 87-755.)
26 (225 ILCS 460/21) (from Ch. 23, par. 5121)
27 Sec. 21. Illinois Charity Bureau Fund. The court in its
28 discretion may place costs, fines, and penalties collected
29 pursuant to this Act into the Illinois Charity Bureau
30 Attorney General's Charitable Trust Enforcement Fund created
31 in Section 19 of the Charitable Trust Act and such shall be
32 expended by the Attorney General for the enforcement and
33 administration of this Act to protect the public interest in
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1 charitable funds and subject to transfer by appropriation of
2 said funds to the Attorney General's Grant Fund at the
3 Attorney General's direction.
4 (Source: P.A. 87-755.)
5 (225 ILCS 460/22 new)
6 Sec. 22. All fees and penalties collected by the
7 Attorney General pursuant to this Act shall be paid and
8 deposited into the Illinois Charity Bureau Fund in the State
9 Treasury. Moneys in the Fund shall be appropriated to the
10 Attorney General for charitable trust enforcement purposes as
11 an addition to other appropriated funds and be used by the
12 Attorney General to provide the public with information
13 concerning charitable trusts and organizations and for
14 charitable trust enforcement activities.
15 (225 ILCS 460/23 new)
16 Sec. 23. As a part of charitable trust enforcement and
17 public disclosure, a task force composed of citizens chosen
18 by the Attorney General to be known as the Attorney General's
19 Charitable Advisory Council shall be and is hereby formed for
20 a 3-year period. This Advisory Council shall study issues of
21 charitable giving, volunteerism, and fundraising in this
22 State and specifically shall evaluate and study the concept
23 of establishing a peer review rating system of the financial
24 reports and operations of charitable trusts and organizations
25 registered in Illinois. The ratings should seek to evaluate
26 the performance of those organizations in terms of program
27 services delivered for each dollar spent. The purpose of the
28 ratings of a charity's performance is to provide those
29 performance ratings to the donating public. The Advisory
30 Council shall consider and report as to the feasibility of
31 rating all charitable organizations registered or of
32 establishing a system of rating only those seeking to be
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1 rated and allowing those rated to represent the rating during
2 solicitations. The Advisory Council members shall serve
3 without compensation, and the expenses of the Council may be
4 paid for out of the Illinois Charity Bureau Fund in an amount
5 not to exceed $10,000 per year and in the discretion of the
6 Attorney General.
7 Section 10. The Charitable Trust Act is amended by
8 changing Sections 2, 3, 5, 7, 12, and 19 as follows:
9 (760 ILCS 55/2) (from Ch. 14, par. 52)
10 Sec. 2. This Act applies to any and all trustees trustee,
11 as defined in Section 3, holding property of a value in
12 excess of $4,000.
13 (Source: Laws 1963, p. 1462.)
14 (760 ILCS 55/3) (from Ch. 14, par. 53)
15 Sec. 3. "Trustee" means any person, individual, group of
16 individuals, association, corporation, not-for-profit
17 corporation, estate representative, or other legal entity
18 holding property for or solicited for any charitable purpose;
19 or any chief operating officer, director, executive director
20 or owner of a corporation soliciting or holding property for
21 a charitable purpose.
22 (Source: P.A. 87-755.)
23 (760 ILCS 55/5) (from Ch. 14, par. 55)
24 Sec. 5. (a) The Attorney General shall establish and
25 maintain a register of trustees subject to this Act and of
26 the particular trust or other relationship under which they
27 hold property for charitable purposes and, to that end, shall
28 conduct whatever investigation is necessary, and shall obtain
29 from public records, court officers, taxing authorities,
30 trustees and other sources, copies of instruments, reports
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1 and records and whatever information is needed for the
2 establishment and maintenance of the register.
3 (b) A registration statement shall be signed and
4 verified under penalty of perjury by 2 officers of a
5 corporate charitable organization or by 2 trustees if not a
6 corporate organization. One signature will be accepted if
7 there is only one officer or one trustee. A registration fee
8 of $15 shall be paid with each initial registration. If a
9 person, trustee or organization fails to maintain a
10 registration of a trust or organization as required by this
11 Act, and its registration is cancelled as provided in this
12 Act, and if that trust or organization remains in existence
13 and by law is required to be registered, in order to
14 re-register, a new registration must be filed accompanied by
15 required financial reports, and in all instances where
16 re-registration is required, submitted, and allowed, the new
17 re-registration materials must be filed, accompanied by a
18 re-registration fee of $200.
19 (c) If a person or trustee fails to register or maintain
20 registration of a trust or organization as provided in this
21 Section, the person or trustee is subject to injunction, to
22 removal, to account, and to appropriate other relief before a
23 court of competent jurisdiction exercising chancery
24 jurisdiction. In the event of such action, the court shall
25 impose, as an additional surcharge, a civil penalty of not
26 less that $500 nor more than $1,000 against any trustee or
27 other person who fails to register or to maintain a
28 registration required under this Act. The collected penalty
29 shall be used for charitable trust enforcement and for
30 providing charitable trust information to the public.
31 (Source: P.A. 87-755.)
32 (760 ILCS 55/7) (from Ch. 14, par. 57)
33 Sec. 7. (a) Except as otherwise provided, every trustee
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1 subject to this Act shall, in addition to filing copies of
2 the instruments previously required, file with the Attorney
3 General periodic annual written reports under oath, setting
4 forth information as to the nature of the assets held for
5 charitable purposes and the administration thereof by the
6 trustee, in accordance with rules and regulations of the
7 Attorney General.
8 (b) The Attorney General shall make rules and
9 regulations as to the time for filing reports, the contents
10 thereof, and the manner of executing and filing them. He may
11 classify trusts and other relationships concerning property
12 held for a charitable purpose as to purpose, nature of
13 assets, duration of the trust or other relationship, amount
14 of assets, amounts to be devoted to charitable purposes,
15 nature of trustee, or otherwise, and may establish different
16 rules for the different classes as to time and nature of the
17 reports required to the ends (1) that he shall receive
18 reasonably current, annual reports as to all charitable
19 trusts or other relationships of a similar nature, which will
20 enable him to ascertain whether they are being properly
21 administered, and (2) that periodic reports shall not
22 unreasonably add to the expense of the administration of
23 charitable trusts and similar relationships. The Attorney
24 General may suspend the filing of reports as to a particular
25 charitable trust or relationship for a reasonable,
26 specifically designated time upon written application of the
27 trustee filed with the Attorney General and after the
28 Attorney General has filed in the register of charitable
29 trusts a written statement that the interests of the
30 beneficiaries will not be prejudiced thereby and that
31 periodic reports are not required for proper supervision by
32 his office.
33 (c) A copy of an account filed by the trustee in any
34 court having jurisdiction of the trust or other
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1 relationship,; if the account has been approved by the court
2 in which it was filed and notice given to the Attorney
3 General as an interested party, may be filed as a report
4 required by this Section.
5 (d) The first report for a trust or similar relationship
6 hereafter established, unless the filing thereof is suspended
7 as herein provided, shall be filed not later than one year
8 after any part of the income or principal is authorized or
9 required to be applied to a charitable purpose. If any part
10 of the income or principal of a trust previously established
11 is authorized or required to be applied to a charitable
12 purpose at the time this Act takes effect, the first report,
13 unless the filing thereof is suspended, shall be filed within
14 6 months after the effective date of this Act. In addition,
15 every trustee registered hereunder that received more than
16 $15,000 in revenue during a trust fiscal year or has
17 possession of more than $15,000 of assets at any time during
18 a fiscal year shall file an annual financial report within 6
19 months of the close of the trust's or organization's fiscal
20 year, and if a calendar year the report shall be due on each
21 June 30 of the following year. Every trustee registered
22 hereunder that did not receive more than $15,000 in revenue
23 or hold more than $15,000 in assets during a fiscal year
24 shall file only a simplified summary financial statement
25 disclosing only the gross receipts, total disbursements, and
26 assets on hand at the end of the year, on forms prescribed by
27 the Attorney General.
28 (e) The periodic reporting provisions of this Act do not
29 apply to any trustee of a trust which is the subject matter
30 of an adversary proceeding pending in the circuit court in
31 this State. However, upon commencement of the proceeding the
32 trustee shall file a report with the Attorney General
33 informing him of that fact together with the title and number
34 of the cause and the name of the court. Upon entry of final
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1 judgment in the cause the trustee shall in like manner report
2 that fact to the Attorney General and fully account for all
3 periods of suspension.
4 (f) The Attorney General in his discretion may, pursuant
5 to rules and regulations promulgated by the Attorney General,
6 accept executed copies of federal Internal Revenue returns
7 and reports as a portion of the annual reporting. The report
8 shall include a statement of any changes in purpose or any
9 other information required to be contained in the
10 registration form filed on behalf of the organization. The
11 report shall be signed under penalty of perjury by the
12 president and the chief fiscal officer of any corporate
13 organization or by 2 trustees if not a corporation. One
14 signature shall be accepted if there is only one officer or
15 trustee.
16 (g) The Attorney General shall cancel the registration
17 of any trust or organization that wilfully fails to comply
18 with subsections (a), (b), (c) or (d) of this Section within
19 the time prescribed, and the assets of the organization may
20 through court proceedings be collected, debts paid and
21 proceeds distributed under court supervision to other
22 charitable purposes upon an action filed by the Attorney
23 General as law and equity allow. Upon timely written
24 request, the due date for filing may be extended by the
25 Attorney General for a period of 60 days. Notice of
26 registration cancellation shall be mailed by regular mail to
27 the registrant at the registration file address or to its
28 registered agent or president 21 days before the effective
29 date of the cancellation. Reports submitted after
30 registration is canceled shall require reregistration.
31 (h) Every trustee registered hereunder that received in
32 any fiscal year more than $15,000 in revenue or held more
33 than $15,000 in assets shall pay a fee of $15 along with each
34 annual financial report filed pursuant to this Act. If an
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1 annual report is not timely filed, a late filing fee of an
2 additional $100 is imposed and shall be paid as a condition
3 of filing a late report. Reports submitted without the
4 proper fee shall not be accepted for filing.
5 (Source: P.A. 87-755.)
6 (760 ILCS 55/12) (from Ch. 14, par. 62)
7 Sec. 12. The Attorney General may institute appropriate
8 proceedings to secure compliance with this Act and to secure
9 the proper administration of any trust or other relationship
10 to which this Act applies. Venue shall be proper in any
11 county where the Attorney General accepts and maintains the
12 list of registrations. In furtherance of judicial economy,
13 actions filed for violation of this Act may name multiple
14 trustees, trusts, and organizations in a joint action where
15 each has engaged in similar conduct in violation of this Act
16 or where similar relief is sought against those defendants
17 for violation of this Act.
18 (Source: P.A. 87-755.)
19 (760 ILCS 55/19) (from Ch. 14, par. 69)
20 Sec. 19. There is created in the State Treasury the
21 Illinois Charity Bureau Fund. All fees and penalties
22 collected by the Attorney General pursuant to this Act shall
23 be deposited in the Illinois Charity Bureau Fund in the State
24 Treasury. Moneys in the Fund shall be appropriated to the
25 Attorney General for charitable trust enforcement purposes
26 and dissemination of public information. There is created in
27 the State Treasury the Attorney General's Charitable Trust
28 Enforcement Fund. The court in its discretion may place
29 costs, fines and penalties collected pursuant to this Act
30 into the enforcement fund and the monies shall be expended by
31 the Attorney General for the enforcement and administration
32 of this Act to protect the public interest in charitable
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1 funds and subject to transfer of the funds to the Attorney
2 General's Grant Fund at the Attorney General's direction.
3 (Source: P.A. 87-755.)
4 Section 15. The State Finance Act is amended by changing
5 Section 5.321 as follows:
6 (30 ILCS 105/5.321) (from Ch. 127, par. 141.321)
7 Sec. 5.321. The Illinois Charity Bureau Attorney
8 General's Charitable Trust Enforcement Fund.
9 (Source: P.A. 87-755; 87-895.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.