Section 1050.300  Approval to Issue Certificates of Receipt

a)         A qualified community foundation shall submit an application for approval to issue certificates of receipt. Each application shall be submitted electronically and shall be signed and verified by an officer or board member. Each application shall include:

1)         a copy of the letter issued by the Internal Revenue Service to the qualified community foundation that it has been granted an exemption from taxation under Section 501(c)(3) of the Internal Revenue Code;

2)         a copy of the certificate of accreditation from the Community Foundations National Standards Board or certification that the qualified community foundation meets the standards established by Community Foundations National Standards;

3)         certification that the qualified community foundation holds a permanent endowment fund meeting the criteria in Section 1050.100;

4)         a list of the names and addresses of all members of the governing board of the qualified community foundation;

5)         a copy of the most recent financial audit of the qualified community foundation's accounts and records conducted by an independent certified public accountant in accordance with auditing standards generally accepted in the United States, government auditing standards, and rules adopted by the Department;

6)         the primary email address to which notices and other documents provided for under the Act shall be sent; and

7)         the beginning and ending dates of the qualified community foundation's fiscal and taxable years.

b)         The Department shall review and either approve or deny each application to issue certificates of receipt. Applicants shall be notified of the Department's determination within 30 business days after the application is received. [35 ILCS 60/170-20(b)] Applications for renewal shall be made on an annual basis. If the application is denied, the Department will notify the qualified community foundation of the reason for the denial of the application. Any defects may be cured by submitting a new application.

1)         An applicant that has a certificate of accreditation from or is listed as an accredited community foundation on the website maintained by the Community Foundation National Standards Board will be deemed eligible for the program.

2)         An applicant that is not accredited by the Community Foundation National Standards Board will be considered to be in substantial compliance with the national standards if it is a tax-exempt, nonprofit, autonomous, nonsectarian philanthropic institution supported by the public with long-term goals of:

A)        Building permanent, component funds established by many separate donors to carry out their charitable interests;

B)        Supporting the broad-based charitable interests and benefitting the residents of a defined geographic area; and

C)        Serving in leadership roles on important community issues.

3)         An applicant that only operates an endowment fund designed to fund its own operations or programs is not eligible for the program because the fund does not benefit other organizations in the community.

4)         An applicant that issues grants to one particular religious sect or denomination, or to a particular charitable cause, such as a children's hospital or an institution of higher education, is not eligible for the program because the fund does not benefit a wide variety of charitable causes throughout this State.