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| [ Introduced ] | [ Enrolled ] | [ House Amendment 001 ] |
91_HB2176eng HB2176 Engrossed LRB9101244ACcd 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, 6, and 23 as follows: 7 (225 ILCS 460/2) (from Ch. 23, par. 5102) 8 Sec. 2. Registration; rules; penalties. 9 (a) Every charitable organization, except as otherwise 10 provided in Section 3 of this Act, which solicits or intends 11 to solicit contributions from persons in this State or which 12 is located in this State, by any means whatsoever shall, 13 prior to any solicitation, file with the Attorney General 14 upon forms prescribed by him, a registration statement, 15 accompanied by a registration fee of $15, which statement 16 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 HB2176 Engrossed -2- LRB9101244ACcd 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 HB2176 Engrossed -3- LRB9101244ACcd 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 HB2176 Engrossed -4- LRB9101244ACcd 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 registration of a trust or organization is 22 cancelled as provided in this Act, the person, organization 23 or trustee is subject to injunction, to removal, to account, 24 and to appropriate other relief before the circuit court 25 exercising chancery jurisdiction. In addition to any other 26 relief granted under this Act, the court mayshallimpose a 27 civil penalty of not less than $500 nor more than $1,000 28 against the organization or trust estate that failedeach and29every trustee, organization, and person who failsto register 30 or failedwho failsto maintain a registration required under 31 this Act. The collected penalty funds shall be used for 32 charitable trust enforcement and for providing charitable 33 trust information to the public. 34 (Source: P.A. 90-469, eff. 8-17-97.) HB2176 Engrossed -5- LRB9101244ACcd 1 (225 ILCS 460/3) (from Ch. 23, par. 5103) 2 Sec. 3. Exemptions. 3 (a) Upon initial filing of a registration statement 4 pursuant to Section 2 of this Act and notification by the 5 Attorney General of his determination that the organizational 6 purposes or circumstances specified in this paragraph for 7 exemption are actual and genuine, the following entities 8 shall be exempt from all the report filing provisions of this 9 Act, except for the requirements set forth in Section 2 of 10 this Act: 11 1. A corporation sole or other religious 12 corporation, trust or organization incorporated or 13 established for religious purposes, nor to any agency or 14 organization incorporated or established for charitable, 15 hospital or educational purposes and engaged in 16 effectuating one or more of such purposes, that is 17 affiliated with, operated by, or supervised or controlled 18 by a corporation sole or other religious corporation, 19 trust or organization incorporated or established for 20 religious purposes, nor to other religious agencies or 21 organizations which serve religion by the preservation of 22 religious rights and freedom from persecution or 23 prejudice or by fostering religion, including the moral 24 and ethical aspects of a particular religious faith. 25 2. Any charitable organization which does not 26 intend to solicit and receive and does not actually 27 receive contributions in excess of $15,000 during any 12 28 month period ending December 31 of any year. However, if 29 the gross contributions received by such charitable 30 organization during any 12 month period ending December 31 31 of any year shall be in excess of $15,000, it shall 32 file reports as required under this Act and the 33 provisions of this Act shall apply. 34 (b) The following persons shall not be required to HB2176 Engrossed -6- LRB9101244ACcd 1 register with the Attorney General: 2 1. The University of Illinois, Southern Illinois 3 University, Eastern Illinois University, Illinois State 4 Normal University, Northern Illinois University, Western 5 Illinois University, all educational institutions that 6 are recognized by the State Board of Education or that 7 are accredited by a regional accrediting association or 8 by an organization affiliated with the National 9 Commission on Accrediting, any foundation having an 10 established identity with any of the aforementioned 11 educational institutions, any other educational 12 institution confining its solicitation of contributions 13 to its student body, alumni, faculty and trustees, and 14 their families, or a library established under the laws 15 of this State, provided that the annual financial report 16 of such institution or library shall be filed with the 17 State Board of Education, Governor, Illinois State 18 Library, County Library Board or County Board, as 19 provided by law. 20 2. Fraternal, patriotic, social, educational, 21 alumni organizations and historical societies when 22 solicitation of contributions is confined to their 23 membership. This exemption shall be extended to any 24 subsidiary of a parent or superior organization exempted 25 by Sub-paragraph 2 of Paragraph (b) of Section 3 of this 26 Act where such solicitation is confined to the membership 27 of the subsidiary, parent or superior organization. 28 3. Persons requesting any contributions for the 29 relief or benefit of any individual, specified by name at 30 the time of the solicitation, if the contributions 31 collected are turned over to the named beneficiary, first 32 deducting reasonable expenses for costs of banquets, or 33 social gatherings, if any, provided all fund raising 34 functions are carried on by persons who are unpaid, HB2176 Engrossed -7- LRB9101244ACcd 1 directly or indirectly, for such services. 2 4. Any bona fide union, bona fide political 3 organization or bona fide political action committee, 4 which does not solicit funds for a charitable purpose. 5 5. Any charitable organization receiving an 6 allocation from an incorporated community chest or united 7 fund, provided such chest or fund is complying with the 8 provisions of this Act relating to registration and 9 filing of annual reports with the Attorney General, and 10 provided such organization does not actually receive, in 11 addition to such allocation, contributions in excess of 12 $4,000 during any 12 month period ending June 30th of any 13 year, and provided further that all the fund raising 14 functions of such organization are carried on by persons 15 who are unpaid for such services. However, if the gross 16 contributions other than such allocation received by such 17 charitable organization during any 12 month period ending 18 June 30th of any year shall be in excess of $4,000, it 19 shall within 30 days after the date it shall have 20 received such contributions in excess of $4,000 register 21 with the Attorney General as required by Section 2. 22 6. A bona fide organization of volunteer firemen, 23 or a bona fide auxiliary or affiliate of such 24 organization, provided all its fund raising activities 25 are carried on by members of such an organization or an 26 affiliate thereof and such members receive no 27 compensation, directly or indirectly, therefor. 28 7. Any charitable organization operating a nursery 29 for infants awaiting adoption providing that all its fund 30 raising activities are carried on by members of such an 31 organization or an affiliate thereof and such members 32 receive no compensation, directly or indirectly therefor. 33 8. Any corporation established by the Federal 34 Congress that is required by federal law to submit annual HB2176 Engrossed -8- LRB9101244ACcd 1 reports of its activities to Congress containing itemized 2 accounts of all receipts and expenditures after being 3 duly audited. 4 9. Any boys' club which is affiliated with the 5 Boys' Club of America, a corporation chartered by 6 Congress; provided, however, that such an affiliate 7 properly files the reports required by the Boys' Club of 8 America and that the Boys' Club of America files with the 9 Government of the United States the reports required by 10 its federal charter. 11 10. Any veterans organization chartered or 12 incorporated under federal law and any veterans 13 organization which is affiliated with, and recognized in 14 the bylaws of, a congressionally chartered or 15 incorporated veterans organization; provided, however, 16 that the affiliate properly files the reports required by 17 the congressionally chartered or incorporated veterans 18 organization, that the congressionally chartered or 19 incorporated veterans organization files with the 20 government of the United States the reports required by 21 its federal charter, and that copies of such federally 22 required reports are filed with the Attorney General. 23 11. Any parent-teacher organization that is 24 controlled by teachers and parents of children attending 25 a particular public or private school for which the 26 organization is named and solicits contributions for the 27 benefit of that particular school; provided that: 28 (i) the school is specified by name at the 29 time the solicitation is made; 30 (ii) all of the contributions are turned over 31 to the school, after first deducting reasonable 32 expenses for fundraising and parent-teacher 33 activities; 34 (iii) all fundraising functions are carried on HB2176 Engrossed -9- LRB9101244ACcd 1 by persons who are not paid, either directly or 2 indirectly, for their fundraising services; 3 (iv) the total contributions, less reasonable 4 fundraising expenses, do not exceed $50,000 in any 5 calendar year; 6 (v) the organization provides the school at 7 least annually with a complete accounting of all 8 contributions received; and 9 (vi) the governing board of the school 10annuallycertifies to the Attorney General, if the 11 Attorney General makes a request for certification, 12 that the parent-teacher organization has provided 13 the school with a full accounting and that the 14 organization has provided benefits and contributions 15 to the school. 16 (Source: P.A. 90-469, eff. 8-17-97.) 17 (225 ILCS 460/4) (from Ch. 23, par. 5104) 18 Sec. 4. (a) Every charitable organization registered 19 pursuant to Section 2 of this Act which shall receive in any 20 12 month period ending upon its established fiscal or 21 calendar year contributions in excess of $150,000 and every 22 charitable organization whose fund raising functions are not 23 carried on solely by staff employees or persons who are 24 unpaid for such services, if the organization shall receive 25 in any 12 month period ending upon its established fiscal or 26 calendar year contributions in excess of $25,000, shall file 27 a written report with the Attorney General upon forms 28 prescribed by him, on or before June 30 of each year if its 29 books are kept on a calendar basis, or within 6 months after 30 the close of its fiscal year if its books are kept on a 31 fiscal year basis, which written report shall include a 32 financial statement covering the immediately preceding 12 33 month period of operation. Such financial statement shall HB2176 Engrossed -10- LRB9101244ACcd 1 include a balance sheet and statement of income and expense, 2 and shall be consistent with forms furnished by the Attorney 3 General clearly setting forth the following: gross receipts 4 and gross income from all sources, broken down into total 5 receipts and income from each separate solicitation project 6 or source; cost of administration; cost of solicitation; cost 7 of programs designed to inform or educate the public; funds 8 or properties transferred out of this State, with explanation 9 as to recipient and purpose; cost of fundraising; 10 compensation paid to trustees; and total net amount disbursed 11 or dedicated for each major purpose, charitable or otherwise. 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, and shall be accompanied by an 19 opinion signed by an independent certified public accountant 20 that the financial statement therein fairly represents the 21 financial operations of the organization in sufficient detail 22 to permit public evaluation of its operations. Said opinion 23 may be relied upon by the 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: 28 (1) in excess of $15,000, but not in excess of 29 $25,000, during a fiscal year shall file only a 30 simplified summary financial statement disclosing only 31 the gross receipts, total disbursements, and assets on 32 hand at the end of the year on forms prescribed by the 33 Attorney General; or 34 (2) in excess of $25,000, but not in excess of HB2176 Engrossed -11- LRB9101244ACcd 1 $150,000, if it is not required to submit a report under 2 subsection (a) of this Section, shall file a written 3 report with the Attorney General upon forms prescribed by 4 him, on or before June 30 of each year if its books are 5 kept on a calendar basis, or within 6 months after the 6 close of its fiscal year if its books are kept on a 7 fiscal year basis, which shall include a financial 8 statement covering the immediately preceding 12-month 9 period of operation limited to a statement of such 10 organization's gross receipts from contributions, the 11 gross amount expended for charitable educational 12 programs, other charitable programs, management expense, 13 and fund raising expenses including a separate statement 14 of the cost of any goods, services or admissions supplied 15 as part of its solicitations, and the disposition of the 16 net proceeds from contributions, including compensation 17 paid to trustees, consistent with forms furnished by the 18 Attorney General. Such report shall also include a 19 statement of any changes in the information required to 20 be contained in the registration form filed on behalf of 21 such organization. The report shall be signed by the 22 president or other authorized officer and the chief 23 fiscal officer of the organization who shall certify that 24 the statements therein are true and correct to the best 25 of their knowledge. 26 (c) For any fiscal or calendar year of any organization 27 registered pursuant to Section 2 of this Act in which such 28 organization would have been exempt from registration 29 pursuant to Section 3 of this Act if it had not been so 30 registered, or in which it did not solicit or receive 31 contributions, such organization shall file, on or before 32 June 30 of each year if its books are kept on a calendar 33 basis, or within 6 months after the close of its fiscal year 34 if its books are kept on a fiscal year basis, instead of the HB2176 Engrossed -12- LRB9101244ACcd 1 reports required by subdivisions (a) or (b) of this Section, 2 a statement certified under penalty of perjury by its 3 president and chief fiscal officer stating the exemption and 4 the facts upon which it is based or that such organization 5 did not solicit or receive contributions in such fiscal year. 6 The statement shall also include a statement of any changes 7 in the information required to be contained in the 8 registration form filed on behalf of such organization. 9 (d) As an alternative means of satisfying the duties and 10 obligations otherwise imposed by this Section, any veterans 11 organization chartered or incorporated under federal law and 12 any veterans organization which is affiliated with, and 13 recognized in the bylaws of, a congressionally chartered or 14 incorporated organization may, at its option, annually file 15 with the Attorney General the following documents: 16 (1) A copy of its Form 990, as filed with the 17 Internal Revenue Service. 18 (2) Copies of any reports required to be filed by 19 the affiliate with the congressionally chartered or 20 incorporated veterans organization, as well as copies of 21 any reports filed by the congressionally chartered or 22 incorporated veterans organization with the government of 23 the United States pursuant to federal law. 24 (3) Copies of all contracts entered into by the 25 congressionally chartered or incorporated veterans 26 organization or its affiliate for purposes of raising 27 funds in this State, such copies to be filed with the 28 Attorney General no more than 30 days after execution of 29 the contracts. 30 (e) As an alternative means of satisfying all of the 31 duties and obligations otherwise imposed by this Section, any 32 person, pursuant to a contract with a charitable 33 organization, a veterans organization or an affiliate 34 described or referred to in subsection (d), who receives, HB2176 Engrossed -13- LRB9101244ACcd 1 collects, holds or transports as the agent of the 2 organization or affiliate for purposes of resale any used or 3 second hand personal property, including but not limited to 4 household goods, furniture or clothing donated to the 5 organization or affiliate may, at its option, annually file 6 with the Attorney General the following documents, 7 accompanied by an annual filing fee of $15: 8 (1) A notarized report including the number of 9 donations of personal property it has received on behalf 10 of the charitable organization, veterans organization or 11 affiliate during the proceeding year. For purposes of 12 this report, the number of donations of personal property 13 shall refer to the number of stops or pickups made 14 regardless of the number of items received at each stop 15 or pickup. The report may cover the person's fiscal 16 year, in which case it shall be filed with the Attorney 17 General no later than 90 days after the close of that 18 fiscal year. 19 (2) All contracts with the charitable organization, 20 veterans organization or affiliate under which the person 21 has acted as an agent for the purposes listed above. 22 (3) All contracts by which the person agreed to pay 23 the charitable organization, veterans organization or 24 affiliate a fixed amount for, or a fixed percentage of 25 the value of, each donation of used or second hand 26 personal property. Copies of all such contracts shall be 27 filed no later than 30 days after they are executed. 28 (f) The Attorney General may seek appropriate equitable 29 relief from a court or, in his discretion, cancel the 30 registration of any organization which fails to comply with 31 subdivision (a), (b) or (c) of this Section within the time 32 therein prescribed, or fails to furnish such additional 33 information as is requested by the Attorney General within 34 the required time; except that the time may be extended by HB2176 Engrossed -14- LRB9101244ACcd 1 the Attorney General for a period not to exceed 60 days upon 2 a timely written request and for good cause stated. Unless 3 otherwise stated herein, the Attorney General shall, by rule, 4 set forth the standards used to determine whether a 5 registration shall be cancelled as authorized by this 6 subsection. Such standards shall be stated as precisely and 7 clearly as practicable, to inform fully those persons 8 affected. Notice of such cancellation shall be mailed to the 9 registrant at least 15 days before the effective date 10 thereof. 11 (g) The Attorney General in his discretion may, pursuant 12 to 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 15 there shall be no substitute for the independent certified 16 public accountant audit opinion required by this Act. 17 (h) The Attorney General after canceling the 18 registration of any trust or organization which fails to 19 comply with this Section within the time therein prescribed 20 may by court proceedings, in addition to all other relief, 21 seek to collect the assets and distribute such under court 22 supervision to other 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 27 filing fee of an additional $100 is imposed and shall be paid 28 as a condition of filing a late report. Reports submitted 29 without the proper fee shall not be accepted for filing. 30 Payment of the late filing fee and acceptance by the Attorney 31 General shall both be conditions of filing a late report. 32 All late filing fees shall be used to provide charitable 33 trust enforcement and dissemination of charitable trust 34 information to the public and shall be maintained in a HB2176 Engrossed -15- LRB9101244ACcd 1 separate fund for such purpose known as the Illinois Charity 2 Bureau Fund. 3 (j) There is created hereby a separate special fund in 4 the State Treasury to be known as the Illinois Charity Bureau 5 Fund. That Fund shall be under the control of the Attorney 6 General, and the funds, fees, and penalties deposited therein 7 shall be used by the Attorney General to enforce the 8 provisions of this Act and to gather and disseminate 9 information about charitable trustees and organizations to 10 the public. 11 (Source: P.A. 89-626, eff. 8-9-96; 90-469, eff. 8-17-97.) 12 (225 ILCS 460/6) (from Ch. 23, par. 5106) 13 Sec. 6. Professional fund raiser registration. 14 (a) No person shall act as a professional fund raiser or 15 allow a professional fund raiser entity he owns, manages or 16 controls to act for a charitable organization required to 17 register pursuant to Section 2 of this Act, or for any 18 organization as described in Section 3 of this Act before he 19 has registered himself or the entity with the Attorney 20 General or after the expiration or cancellation of such 21 registration or any renewal thereof. Applications for 22 registration and re-registration shall be in writing, under 23 oath, in the form prescribed by the Attorney General. A 24 registration fee of $100 shall be paid with each registration 25 and upon each re-registration. Registration and 26 re-registration can proceed only if all financial reports 27 have been filed in proper form and all fees have been paid in 28 full. If the applicant intends to or does take control or 29 possession of charitable funds, the applicant shall at the 30 time of making application, file with, and have approved by, 31 the Attorney General a bond in which the applicant shall be 32 the principal obligor, in the sum of $10,000, with one or 33 more corporate sureties licensed to do business in this State HB2176 Engrossed -16- LRB9101244ACcd 1 whose liability in the aggregate will at least equal such 2 sum. The bond shall run to the Attorney General for the use 3 of the State and to any person who may have a cause of action 4 against the obligor of the bond for any malfeasance or 5 misfeasance in the conduct of such solicitation; provided, 6 that the aggregate limit of liability of the surety to the 7 State and to all such persons shall, in no event, exceed the 8 sum of such bond. Registration or re-registration when 9 effected shall be for a period of one year, or a part 10 thereof, expiring on the 30th day of June, and may be renewed 11 upon written application, under oath, in the form prescribed 12 by the Attorney General and the filing of the bond for 13 additional one year periods. Every professional fund raiser 14 required to register pursuant to this Act shall file an 15 annual written report with the Attorney General containing 16 such information as he may require by rule. Certification 17 shall be required for only information within the 18 professional fund raiser's knowledge. 19 (b) Upon filing a complete registration statement, a 20 professional fund raiser shall be given a registration number 21 and shall be considered registered. If the materials 22 submitted are determined to be inaccurate or incomplete, the 23 Attorney General shall notify the professional fund raiser of 24 his findings and the defect and that within 30 days his 25 registration will be cancelled unless the defect is cured 26 within said time. 27 (c) Every professional fund raiser registered under this 28 Act who takes possession or control of charitable funds 29 directly, indirectly, or through an escrow shall submit a 30 full written accounting to the charitable organization of all 31 funds it or its agents collected on behalf of the charitable 32 organization during the 6 month period ended June 30 of each 33 year, and file a copy of the accounting with the Attorney 34 General. The accounting shall be in writing under oath and HB2176 Engrossed -17- LRB9101244ACcd 1 be signed and made on forms as prescribed by the Attorney 2 General and shall be filed by the following September 30 of 3 each year; however, within the time prescribed, and for good 4 cause, the Attorney General may grant a 60 day extension of 5 the due date. 6 (d) Every professional fund raiser registered pursuant 7 to this Act shall also file calendar year written financial 8 reports with the Attorney General containing such information 9 as he may require, on forms prescribed by him, as well as 10 separate financial reports for each separate fund raising 11 campaign conducted. The written report shall be filed under 12 oath on or before April 30 of the following calendar year and 13 be signed and verified under penalty of perjury within the 14 time prescribed. An annual report fee of $25 shall be paid to 15 the Attorney General with the filing of that report. If the 16 report is not timely filed, a late filing fee shall result 17 and must be paid prior to re-registration. The late filing 18 fee shall be calculated at $200 for each and every separate 19 fundraising campaign conducted during the report year. For 20 good cause, the Attorney General may grant a 30 day extension 21 of the due date, in which case a late filing fee shall not be 22 imposed until the expiration of the extension period. A copy 23 of the report shall also be given to the charitable 24 organization by the due date of filing. A professional fund 25 raiser shall only be required to verify information actually 26 available to the professional fund raiser, but in any event 27 an annual report must be timely filed. 28 (e) No person convicted of a felony may register as a 29 professional fund raiser, and no person convicted of a 30 misdemeanor involving fiscal wrongdoing, breach of fiduciary 31 duty or a violation of this Act may register as a 32 professional fund raiser for a period of 5 years from the 33 date of the conviction or the date of termination of the 34 sentence or probation, if any, whichever is later. This HB2176 Engrossed -18- LRB9101244ACcd 1 subsection shall not apply to charitable organizations that 2 have as their primary purpose the rehabilitation of criminal 3 offenders, the reintegration of criminal offenders into 4 society, the improvement of the criminal justice system or 5 the improvement of conditions within penal institutions. 6 (f) A professional fund raiser may not cause or allow 7 independent contractors to act on its behalf in soliciting 8 charitable contributions other than registered professional 9 solicitors. A professional fund raiser must maintain the 10 names, addresses and social security numbers of all of its 11 professional solicitors for a period of at least 2 years. 12 (g) Any person who knowingly violates the provisions of 13 subsections (a), (e), and (f) of this Section is guilty of a 14 Class 4 felony. Any person who fails after being given 15 notice of delinquency to file written financial reports 16 required by subsections (c) and (d) of this Section which is 17 more than 2 months past its due date is guilty of a Class A 18 misdemeanor. 19 (h) Any person who violates any of the provisions of 20 this Section shall be subject to civil penalties of $5,000 21 for each violation and shall not be entitled to keep or 22 receive fees, salaries, commissions or any compensation as a 23 result or on account of the solicitations or fund raising 24 campaigns, and at the request of the Attorney General or the 25 charitable organization, a court may order that such be 26 forfeited and paid toward and used for a charitable purpose 27 as the court in its discretion determines is appropriate or 28 placed in the Illinois Charity Bureau Fund. 29 (Source: P.A. 90-469, eff. 8-17-97.) 30 (225 ILCS 460/23) 31 Sec. 23. Charitable Advisory Council. As a part of 32 charitable trust enforcement and public disclosure, a task 33 force composed of citizens chosen by the Attorney General to HB2176 Engrossed -19- LRB9101244ACcd 1 be known as the Attorney General's Charitable Advisory 2 Council shall be and is hereby formed for a 3-year period. 3 This Advisory Council shall study issues of charitable 4 giving, volunteerism, and fundraising in this Stateand5specifically shall evaluate and study the concept of6establishing a peer review rating system of the financial7reports and operations of charitable trusts and organizations8registered in Illinois. The ratings should seek to evaluate9the performance of those organizations in terms of program10services delivered for each dollar spent. The purpose of the11ratings of a charity's performance is to provide those12performance ratings to the donating public. The Advisory13Council shall consider and report as to the feasibility of14rating all charitable organizations registered or of15establishing a system of rating only those seeking to be16rated and allowing those rated to represent the rating during17solicitations. The Advisory Council members shall serve 18 without compensation, and the expenses of the Council may be 19 paid for out of the Illinois Charity Bureau Fund in an amount 20 not to exceed $10,000 per year and in the discretion of the 21 Attorney General. 22 (Source: P.A. 90-469, eff. 8-17-97.) 23 Section 10. The Charitable Trust Act is amended by 24 changing Sections 5 and 7 as follows: 25 (760 ILCS 55/5) (from Ch. 14, par. 55) 26 Sec. 5. Registration requirement. 27 (a) The Attorney General shall establish and maintain a 28 register of trustees subject to this Act and of the 29 particular trust or other relationship under which they hold 30 property for charitable purposes and, to that end, shall 31 conduct whatever investigation is necessary, and shall obtain 32 from public records, court officers, taxing authorities, HB2176 Engrossed -20- LRB9101244ACcd 1 trustees and other sources, copies of instruments, reports 2 and records and whatever information is needed for the 3 establishment and maintenance of the register. 4 (b) A registration statement shall be signed and 5 verified under penalty of perjury by 2 officers of a 6 corporate charitable organization or by 2 trustees if not a 7 corporate organization. One signature will be accepted if 8 there is only one officer or one trustee. A registration fee 9 of $15 shall be paid with each initial registration. If a 10 person, trustee or organization fails to maintain a 11 registration of a trust or organization as required by this 12 Act, and its registration is cancelled as provided in this 13 Act, and if that trust or organization remains in existence 14 and by law is required to be registered, in order to 15 re-register, a new registration must be filed accompanied by 16 required financial reports, and in all instances where 17 re-registration is required, submitted, and allowed, the new 18 re-registration materials must be filed, accompanied by a 19 re-registration fee of $200. 20 (c) If a person or trustee fails to register or maintain 21 registration of a trust or organization or fails to file 22 reports as provided in this ActSection, the person or 23 trustee is subject to injunction, to removal, to account, and 24 to appropriate other relief before a court of competent 25 jurisdiction exercising chancery jurisdiction. In the event 26 of such action, the court mayshallimpose, as an additional27surcharge,a civil penalty of not less that $500 nor more 28 than $1,000 against the organization or trust estate that 29 failedany trustee or other person who failsto register or 30 to maintain a registration required under this Act. The 31 collected penalty shall be used for charitable trust 32 enforcement and for providing charitable trust information to 33 the public. 34 (Source: P.A. 90-469, eff. 8-17-97.) HB2176 Engrossed -21- LRB9101244ACcd 1 (760 ILCS 55/7) (from Ch. 14, par. 57) 2 Sec. 7. (a) Except as otherwise provided, every trustee 3 subject to this Act shall, in addition to filing copies of 4 the instruments previously required, file with the Attorney 5 General periodic annual written reports under oath, setting 6 forth information as to the nature of the assets held for 7 charitable purposes and the administration thereof by the 8 trustee, in accordance with rules and regulations of the 9 Attorney General. 10 (b) The Attorney General shall make rules and 11 regulations as to the time for filing reports, the contents 12 thereof, and the manner of executing and filing them. He may 13 classify trusts and other relationships concerning property 14 held for a charitable purpose as to purpose, nature of 15 assets, duration of the trust or other relationship, amount 16 of assets, amounts to be devoted to charitable purposes, 17 nature of trustee, or otherwise, and may establish different 18 rules for the different classes as to time and nature of the 19 reports required to the ends (1) that he shall receive 20 reasonably current, annual reports as to all charitable 21 trusts or other relationships of a similar nature, which will 22 enable him to ascertain whether they are being properly 23 administered, and (2) that periodic reports shall not 24 unreasonably add to the expense of the administration of 25 charitable trusts and similar relationships. The Attorney 26 General may suspend the filing of reports as to a particular 27 charitable trust or relationship for a reasonable, 28 specifically designated time upon written application of the 29 trustee filed with the Attorney General and after the 30 Attorney General has filed in the register of charitable 31 trusts a written statement that the interests of the 32 beneficiaries will not be prejudiced thereby and that 33 periodic reports are not required for proper supervision by 34 his office. HB2176 Engrossed -22- LRB9101244ACcd 1 (c) A copy of an account filed by the trustee in any 2 court having jurisdiction of the trust or other relationship, 3 if the account has been approved by the court in which it was 4 filed and notice given to the Attorney General as an 5 interested party, may be filed as a report required by this 6 Section. 7 (d) The first report for a trust or similar relationship 8 hereafter established, unless the filing thereof is suspended 9 as herein provided, shall be filed not later than one year 10 after any part of the income or principal is authorized or 11 required to be applied to a charitable purpose. If any part 12 of the income or principal of a trust previously established 13 is authorized or required to be applied to a charitable 14 purpose at the time this Act takes effect, the first report, 15 unless the filing thereof is suspended, shall be filed within 16 6 months after the effective date of this Act. In addition, 17 every trustee registered hereunder that received more than 18 $25,000$15,000in revenue during a trust fiscal year or has 19 possession of more than $25,000$15,000of assets at any time 20 during a fiscal year shall file an annual financial report 21 within 6 months of the close of the trust's or organization's 22 fiscal year, and if a calendar year the report shall be due 23 on each June 30 of the following year. Every trustee 24 registered hereunder that did not receive more than $25,000 25$15,000in revenue or hold more than $25,000$15,000in 26 assets during a fiscal year shall file only a simplified 27 summary financial statement disclosing only the gross 28 receipts, total disbursements, and assets on hand at the end 29 of the year, on forms prescribed by the Attorney General. 30 (e) The periodic reporting provisions of this Act do not 31 apply to any trustee of a trust which is the subject matter 32 of an adversary proceeding pending in the circuit court in 33 this State. However, upon commencement of the proceeding the 34 trustee shall file a report with the Attorney General HB2176 Engrossed -23- LRB9101244ACcd 1 informing him of that fact together with the title and number 2 of the cause and the name of the court. Upon entry of final 3 judgment in the cause the trustee shall in like manner report 4 that fact to the Attorney General and fully account for all 5 periods of suspension. 6 (f) The Attorney General in his discretion may, pursuant 7 to rules and regulations promulgated by the Attorney General, 8 accept executed copies of federal Internal Revenue returns 9 and reports as a portion of the annual reporting. The report 10 shall include a statement of any changes in purpose or any 11 other information required to be contained in the 12 registration form filed on behalf of the organization. The 13 report shall be signed under penalty of perjury by the 14 president and the chief fiscal officer of any corporate 15 organization or by 2 trustees if not a corporation. One 16 signature shall be accepted if there is only one officer or 17 trustee. 18 (g) The Attorney General shall cancel the registration 19 of any trust or organization that wilfully fails to comply 20 with subsections (a), (b), (c) or (d) of this Section within 21 the time prescribed, and the assets of the organization may 22 through court proceedings be collected, debts paid and 23 proceeds distributed under court supervision to other 24 charitable purposes upon an action filed by the Attorney 25 General as law and equity allow. Upon timely written 26 request, the due date for filing may be extended by the 27 Attorney General for a period of 60 days. Notice of 28 registration cancellation shall be mailed by regular mail to 29 the registrant at the registration file address or to its 30 registered agent or president 21 days before the effective 31 date of the cancellation. Reports submitted after 32 registration is canceled shall require reregistration. 33 (h) Every trustee registered hereunder that received in 34 any fiscal year more than $25,000$15,000in revenue or held HB2176 Engrossed -24- LRB9101244ACcd 1 more than $25,000$15,000in assets shall pay a fee of $15 2 along with each annual financial report filed pursuant to 3 this Act. If an annual report is not timely filed, a late 4 filing fee of an additional $100 is imposed and shall be paid 5 as a condition of filing a late report. Reports submitted 6 without the proper fee shall not be accepted for filing. 7 (Source: P.A. 90-469, eff. 8-17-97.) 8 Section 99. Effective date. This Act takes effect upon 9 becoming law.