Full Text of SB2907 101st General Assembly
SB2907 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2907 Introduced 2/4/2020, by Sen. Heather A. Steans SYNOPSIS AS INTRODUCED: |
| 225 ILCS 460/4 | from Ch. 23, par. 5104 |
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Amends the Solicitation for Charity Act. Provides that every charitable organization registered under the Act which shall receive in any 12-month period contributions in excess of $750,000 (rather than $300,000), shall file a written report with the Attorney General, which shall include a financial statement containing information provided for in the Act. Makes a conforming change.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Solicitation for Charity Act is amended by | 5 | | changing Section 4 as follows:
| 6 | | (225 ILCS 460/4) (from Ch. 23, par. 5104)
| 7 | | Sec. 4.
(a) Every charitable organization registered | 8 | | pursuant to Section 2
of this Act which shall receive in any | 9 | | 12-month period ending upon its
established fiscal or calendar | 10 | | year contributions in excess of $750,000 $300,000
and every | 11 | | charitable organization whose fund raising functions are not
| 12 | | carried on solely by staff employees or persons who are unpaid | 13 | | for such
services, if the organization shall receive in any | 14 | | 12-month period ending
upon its established fiscal or calendar | 15 | | year contributions in excess of
$25,000, shall file a
written | 16 | | report with the Attorney General upon forms
prescribed by him, | 17 | | on or before June 30 of each year if its books are kept
on a | 18 | | calendar basis, or within 6 months after the close of its | 19 | | fiscal year
if its books are kept on a fiscal year basis, which | 20 | | written report shall
include a
financial statement covering the | 21 | | immediately preceding 12-month period of
operation. Such | 22 | | financial statement shall include a balance sheet and
statement | 23 | | of income and expense, and shall be consistent with forms
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| 1 | | furnished by the Attorney General clearly setting forth the | 2 | | following:
gross receipts and gross income from all sources, | 3 | | broken down into total
receipts and income from each separate | 4 | | solicitation
project or source; cost of administration; cost of | 5 | | solicitation; cost of
programs designed to inform or educate | 6 | | the public; funds or properties
transferred out of this State, | 7 | | with explanation as to recipient and
purpose; cost of | 8 | | fundraising; compensation paid to trustees; and total net
| 9 | | amount disbursed or dedicated for each major purpose,
| 10 | | charitable or otherwise. Such report shall also include a | 11 | | statement of any
changes in the information required to be | 12 | | contained in the registration
form filed on behalf of such | 13 | | organization. The report shall be signed by
the president or | 14 | | other authorized officer and the chief fiscal officer of
the | 15 | | organization who shall certify that the statements therein are | 16 | | true
and correct to the best of their knowledge, and shall be | 17 | | accompanied by
an opinion signed by an independent certified | 18 | | public accountant that the
financial statement therein fairly | 19 | | represents the financial operations of
the organization in | 20 | | sufficient detail to permit public evaluation of its
| 21 | | operations. Said opinion may be relied upon by the Attorney | 22 | | General.
| 23 | | (b) Every organization registered pursuant to Section 2 of | 24 | | this Act
which shall receive in any 12-month period ending upon | 25 | | its established
fiscal or calendar year of any year
| 26 | | contributions:
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| 1 | | (1) in excess of $15,000, but not in excess of $25,000, | 2 | | during a
fiscal
year shall file only a simplified summary | 3 | | financial statement disclosing only
the gross receipts, | 4 | | total disbursements, and assets on hand at the end of the
| 5 | | year on forms prescribed by the Attorney General; or
| 6 | | (2) in excess of $25,000, but not in excess of $750,000 | 7 | | $300,000 , if it is not
required to submit a report under
| 8 | | subsection (a) of this Section, shall
file a written report | 9 | | with the Attorney General upon forms prescribed by
him, on | 10 | | or before June 30 of each year if its books are kept on a | 11 | | calendar
basis, or within 6 months after the close of its | 12 | | fiscal year if its books
are kept on a fiscal year basis, | 13 | | which shall include a financial statement
covering the | 14 | | immediately preceding 12-month period of operation limited | 15 | | to
a statement of such organization's gross receipts from | 16 | | contributions, the
gross amount expended for charitable | 17 | | educational programs, other charitable
programs, | 18 | | management expense, and fund
raising expenses including a | 19 | | separate statement of the cost of any goods,
services or | 20 | | admissions supplied as part of its solicitations, and the
| 21 | | disposition of the net proceeds from contributions, | 22 | | including compensation
paid to trustees, consistent with | 23 | | forms furnished by the Attorney General.
Such report shall | 24 | | also
include a statement of any changes in the information | 25 | | required to be
contained in the registration form filed on | 26 | | behalf of such organization.
The report shall be signed by |
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| 1 | | the president or other authorized officer and
the chief | 2 | | fiscal officer of the organization who shall certify that | 3 | | the
statements therein are true and correct to the best of | 4 | | their knowledge.
| 5 | | (c) For any fiscal or calendar year of any organization | 6 | | registered
pursuant to Section 2 of this Act in which such | 7 | | organization would have
been exempt from registration pursuant | 8 | | to Section 3 of this Act if it had
not been so registered, or in | 9 | | which it did not solicit or receive
contributions, such | 10 | | organization shall file, on or before June 30 of each
year if | 11 | | its books are kept on a calendar basis, or within 6 months | 12 | | after
the close of its fiscal year if its books are kept on a | 13 | | fiscal year basis,
instead of the reports required by | 14 | | subdivisions (a) or (b) of this Section,
a statement certified | 15 | | under penalty of perjury by its president and chief fiscal
| 16 | | officer stating the exemption and the facts upon which it is | 17 | | based or that
such organization did not solicit or receive | 18 | | contributions in such fiscal
year. The statement shall also | 19 | | include a statement of any
changes in the information required | 20 | | to be contained in the registration form
filed on behalf of | 21 | | such organization.
| 22 | | (d) As an alternative means of satisfying the duties and | 23 | | obligations
otherwise imposed by this Section, any veterans | 24 | | organization
chartered or incorporated under federal law and | 25 | | any veterans organization
which is affiliated with, and | 26 | | recognized in the bylaws of, a
congressionally chartered or |
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| 1 | | incorporated organization may, at its option,
annually file | 2 | | with the Attorney General the following documents:
| 3 | | (1) A copy of its Form 990, as filed with the Internal | 4 | | Revenue Service.
| 5 | | (2) Copies of any reports required to be filed by the | 6 | | affiliate with
the congressionally chartered or | 7 | | incorporated veterans organization, as well
as copies of | 8 | | any reports filed by the congressionally chartered or
| 9 | | incorporated veterans organization with the government of | 10 | | the United States
pursuant to federal law.
| 11 | | (3) Copies of all contracts entered into by the | 12 | | congressionally
chartered or incorporated veterans | 13 | | organization or its affiliate for
purposes of raising funds | 14 | | in this State, such copies to be filed with the
Attorney | 15 | | General no more than 30 days after execution of the | 16 | | contracts.
| 17 | | (e) As an alternative means of satisfying all of the duties | 18 | | and
obligations otherwise imposed by this Section, any person, | 19 | | pursuant
to a
contract with a charitable organization, a | 20 | | veterans organization or an
affiliate described or referred to | 21 | | in subsection (d), who receives,
collects, holds or transports | 22 | | as the agent of the organization or affiliate
for purposes of | 23 | | resale any used or second hand personal property, including
but | 24 | | not limited to household goods, furniture or clothing donated | 25 | | to the
organization or affiliate may, at its option, annually | 26 | | file 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 of | 4 | | the charitable organization, veterans
organization or | 5 | | affiliate during the preceding year. For purposes of this
| 6 | | report, the number of donations of personal property shall | 7 | | refer to the
number of stops or pickups made regardless of | 8 | | the number of items received
at each stop or pickup. The | 9 | | report may cover the person's fiscal year, in
which case it | 10 | | shall be filed with the Attorney General no later than 90
| 11 | | days after the close of that fiscal year.
| 12 | | (2) All contracts with the charitable organization, | 13 | | veterans
organization or affiliate under which the person | 14 | | has acted as an agent for
the purposes listed above.
| 15 | | (3) All contracts by which the person agreed to pay the | 16 | | charitable
organization, veterans organization or | 17 | | affiliate a fixed amount for, or a
fixed percentage of the | 18 | | value of, each donation of used or second hand
personal | 19 | | property. Copies of all such contracts shall be filed no | 20 | | later
than 30 days after they are executed.
| 21 | | (f) The Attorney General may seek appropriate equitable | 22 | | relief from a
court or, in his discretion, cancel the | 23 | | registration
of any organization which fails to comply with | 24 | | subdivision (a), (b), or (c) of
this Section within the time | 25 | | therein prescribed, or fails to furnish such
additional | 26 | | information as is requested by the Attorney General within the
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| 1 | | required time; except that the time may be extended by the | 2 | | Attorney General
for a period not to exceed 60 days upon a | 3 | | timely written
request and for
good cause stated. Unless | 4 | | otherwise stated herein, the Attorney General
shall, by
rule, | 5 | | set forth the standards used to determine whether a | 6 | | registration
shall be cancelled as authorized by this | 7 | | subsection. Such standards shall
be stated as precisely and | 8 | | clearly as practicable, to inform fully those
persons affected. | 9 | | Notice of such cancellation shall be mailed to the
registrant | 10 | | at least 15 days before the effective date thereof.
| 11 | | (g) The Attorney General in his discretion may, pursuant to | 12 | | rule,
accept executed copies of federal Internal Revenue | 13 | | returns and reports as a
portion of the foregoing
annual | 14 | | reporting in the interest of minimizing paperwork, except there
| 15 | | shall be no substitute for the independent certified public | 16 | | accountant
audit opinion required by this Act.
| 17 | | (h) The Attorney General after canceling the registration | 18 | | of any trust
or organization which fails to comply with
this
| 19 | | Section within the time therein prescribed may by court | 20 | | proceedings, in
addition to all other relief, seek to
collect | 21 | | the assets and distribute such under court supervision to other
| 22 | | charitable purposes.
| 23 | | (i) Every trustee, person, and organization required to | 24 | | file an annual
report shall pay a filing fee of $15 with each | 25 | | annual financial report filed
pursuant to this Section. If a | 26 | | proper and complete annual report is not timely
filed, a late |
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| 1 | | filing fee of an additional $100 is imposed and shall be paid
| 2 | | as a condition of filing a late report. Reports submitted | 3 | | without the proper
fee shall not be accepted for filing. | 4 | | Payment of the late filing fee and
acceptance by the Attorney | 5 | | General shall both be conditions of filing a late
report. All | 6 | | late filing fees shall be used to provide charitable trust
| 7 | | enforcement and dissemination of charitable trust information | 8 | | to the public and
shall be maintained in a separate fund for | 9 | | such purpose known as the Illinois
Charity Bureau Fund.
| 10 | | (j) There is created hereby a separate special fund in the | 11 | | State Treasury to
be known as the Illinois Charity Bureau Fund. | 12 | | That Fund shall be under the
control of the Attorney General, | 13 | | and the funds, fees, and penalties deposited
therein shall be | 14 | | used by the Attorney General to enforce the provisions of this
| 15 | | Act and to gather and disseminate information about charitable | 16 | | trustees and
organizations to the public.
| 17 | | (Source: P.A. 100-201, eff. 8-18-17.)
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