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Public Act 096-0488
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| SB1970 Enrolled |
LRB096 11022 ASK 21311 b |
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AN ACT concerning charitable organizations.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Solicitation for Charity Act is amended by |
changing Section 4 as follows:
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(225 ILCS 460/4) (from Ch. 23, par. 5104)
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Sec. 4.
(a) Every charitable organization registered |
pursuant to Section 2
of this Act which shall receive in any 12 |
month period ending upon its
established fiscal or calendar |
year contributions in excess of $300,000 $150,000
and every |
charitable organization whose fund raising functions are not
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carried on solely by staff employees or persons who are unpaid |
for such
services, if the organization shall receive in any 12 |
month period ending
upon its established fiscal or calendar |
year contributions in excess of
$25,000, shall file a
written |
report with the Attorney General upon forms
prescribed by him, |
on or before June 30 of each year if its books are kept
on a |
calendar basis, or within 6 months after the close of its |
fiscal year
if its books are kept on a fiscal year basis, which |
written report shall
include a
financial statement covering the |
immediately preceding 12 month period of
operation. Such |
financial statement shall include a balance sheet and
statement |
of income and expense, and shall be consistent with forms
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furnished by the Attorney General clearly setting forth the |
following:
gross receipts and gross income from all sources, |
broken down into total
receipts and income from each separate |
solicitation
project or source; cost of administration; cost of |
solicitation; cost of
programs designed to inform or educate |
the public; funds or properties
transferred out of this State, |
with explanation as to recipient and
purpose; cost of |
fundraising; compensation paid to trustees; and total net
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amount disbursed or dedicated for each major purpose,
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charitable or otherwise. Such report shall also include a |
statement of any
changes in the information required to be |
contained in the registration
form filed on behalf of such |
organization. The report shall be signed by
the president or |
other authorized officer and the chief fiscal officer of
the |
organization who shall certify that the statements therein are |
true
and correct to the best of their knowledge, and shall be |
accompanied by
an opinion signed by an independent certified |
public accountant that the
financial statement therein fairly |
represents the financial operations of
the organization in |
sufficient detail to permit public evaluation of its
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operations. Said opinion may be relied upon by the Attorney |
General.
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(b) Every organization registered pursuant to Section 2 of |
this Act
which shall receive in any 12 month period ending upon |
its established
fiscal or calendar year of any year
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contributions:
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(1) in excess of $15,000, but not in excess of $25,000, |
during a
fiscal
year shall file only a simplified summary |
financial statement disclosing only
the gross receipts, |
total disbursements, and assets on hand at the end of the
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year on forms prescribed by the Attorney General; or
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(2) in excess of $25,000, but not in excess of $300,000 |
$150,000, if it is not
required to submit a report under
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subsection (a) of this Section, shall
file a written report |
with the Attorney General upon forms prescribed by
him, on |
or before June 30 of each year if its books are kept on a |
calendar
basis, or within 6 months after the close of its |
fiscal year if its books
are kept on a fiscal year basis, |
which shall include a financial statement
covering the |
immediately preceding 12-month period of operation limited |
to
a statement of such organization's gross receipts from |
contributions, the
gross amount expended for charitable |
educational programs, other charitable
programs, |
management expense, and fund
raising expenses including a |
separate statement of the cost of any goods,
services or |
admissions supplied as part of its solicitations, and the
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disposition of the net proceeds from contributions, |
including compensation
paid to trustees, consistent with |
forms furnished by the Attorney General.
Such report shall |
also
include a statement of any changes in the information |
required to be
contained in the registration form filed on |
behalf of such organization.
The report shall be signed by |
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the president or other authorized officer and
the chief |
fiscal officer of the organization who shall certify that |
the
statements therein are true and correct to the best of |
their knowledge.
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(c) For any fiscal or calendar year of any organization |
registered
pursuant to Section 2 of this Act in which such |
organization would have
been exempt from registration pursuant |
to Section 3 of this Act if it had
not been so registered, or in |
which it did not solicit or receive
contributions, such |
organization shall file, on or before June 30 of each
year if |
its books are kept on a calendar basis, or within 6 months |
after
the close of its fiscal year if its books are kept on a |
fiscal year basis,
instead of the reports required by |
subdivisions (a) or (b) of this Section,
a statement certified |
under penalty of perjury by its president and chief fiscal
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officer stating the exemption and the facts upon which it is |
based or that
such organization did not solicit or receive |
contributions in such fiscal
year. The statement shall also |
include a statement of any
changes in the information required |
to be contained in the registration form
filed on behalf of |
such organization.
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(d) As an alternative means of satisfying the duties and |
obligations
otherwise imposed by this Section, any veterans |
organization
chartered or incorporated under federal law and |
any veterans organization
which is affiliated with, and |
recognized in the bylaws of, a
congressionally chartered or |
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incorporated organization may, at its option,
annually file |
with the Attorney General the following documents:
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(1) A copy of its Form 990, as filed with the Internal |
Revenue Service.
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(2) Copies of any reports required to be filed by the |
affiliate with
the congressionally chartered or |
incorporated veterans organization, as well
as copies of |
any reports filed by the congressionally chartered or
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incorporated veterans organization with the government of |
the United States
pursuant to federal law.
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(3) Copies of all contracts entered into by the |
congressionally
chartered or incorporated veterans |
organization or its affiliate for
purposes of raising funds |
in this State, such copies to be filed with the
Attorney |
General no more than 30 days after execution of the |
contracts.
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(e) As an alternative means of satisfying all of the duties |
and
obligations otherwise imposed by this Section, any person, |
pursuant
to a
contract with a charitable organization, a |
veterans organization or an
affiliate described or referred to |
in subsection (d), who receives,
collects, holds or transports |
as the agent of the organization or affiliate
for purposes of |
resale any used or second hand personal property, including
but |
not limited to household goods, furniture or clothing donated |
to the
organization or affiliate may, at its option, annually |
file with the
Attorney General the following documents, |
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accompanied by an annual filing fee
of $15:
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(1) A notarized report including the number of |
donations of personal
property it has received on behalf of |
the charitable organization, veterans
organization or |
affiliate during the proceeding year. For purposes of this
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report, the number of donations of personal property shall |
refer to the
number of stops or pickups made regardless of |
the number of items received
at each stop or pickup. The |
report may cover the person's fiscal year, in
which case it |
shall be filed with the Attorney General no later than 90
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days after the close of that fiscal year.
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(2) All contracts with the charitable organization, |
veterans
organization or affiliate under which the person |
has acted as an agent for
the purposes listed above.
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(3) All contracts by which the person agreed to pay the |
charitable
organization, veterans organization or |
affiliate a fixed amount for, or a
fixed percentage of the |
value of, each donation of used or second hand
personal |
property. Copies of all such contracts shall be filed no |
later
than 30 days after they are executed.
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(f) The Attorney General may seek appropriate equitable |
relief from a
court or, in his discretion, cancel the |
registration
of any organization which fails to comply with |
subdivision (a), (b) or (c) of
this Section within the time |
therein prescribed, or fails to furnish such
additional |
information as is requested by the Attorney General within the
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required time; except that the time may be extended by the |
Attorney General
for a period not to exceed 60 days upon a |
timely written
request and for
good cause stated. Unless |
otherwise stated herein, the Attorney General
shall, by
rule, |
set forth the standards used to determine whether a |
registration
shall be cancelled as authorized by this |
subsection. Such standards shall
be stated as precisely and |
clearly as practicable, to inform fully those
persons affected. |
Notice of such cancellation shall be mailed to the
registrant |
at least 15 days before the effective date thereof.
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(g) The Attorney General in his discretion may, pursuant to |
rule,
accept executed copies of federal Internal Revenue |
returns and reports as a
portion of the foregoing
annual |
reporting in the interest of minimizing paperwork, except there
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shall be no substitute for the independent certified public |
accountant
audit opinion required by this Act.
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(h) The Attorney General after canceling the registration |
of any trust
or organization which fails to comply with
this
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Section within the time therein prescribed may by court |
proceedings, in
addition to all other relief, seek to
collect |
the assets and distribute such under court supervision to other
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charitable purposes.
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(i) Every trustee, person, and organization required to |
file an annual
report shall pay a filing fee of $15 with each |
annual financial report filed
pursuant to this Section. If a |
proper and complete annual report is not timely
filed, a late |
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filing fee of an additional $100 is imposed and shall be paid
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as a condition of filing a late report. Reports submitted |
without the proper
fee shall not be accepted for filing. |
Payment of the late filing fee and
acceptance by the Attorney |
General shall both be conditions of filing a late
report. All |
late filing fees shall be used to provide charitable trust
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enforcement and dissemination of charitable trust information |
to the public and
shall be maintained in a separate fund for |
such purpose known as the Illinois
Charity Bureau Fund.
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(j) There is created hereby a separate special fund in the |
State Treasury to
be known as the Illinois Charity Bureau Fund. |
That Fund shall be under the
control of the Attorney General, |
and the funds, fees, and penalties deposited
therein shall be |
used by the Attorney General to enforce the provisions of this
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Act and to gather and disseminate information about charitable |
trustees and
organizations to the public.
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(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
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