(225 ILCS 460/7)
(from Ch. 23, par. 5107)
(a) All contracts entered into by a professional fund raiser to
conduct a fundraising campaign for a charitable purpose or charitable
organization must be in writing in conformity with this Act. A
true and correct copy of each contract shall be filed by the professional
fund raiser and the charitable trustee or organization
who is party
thereto with the Attorney General prior to the conduct of a fundraising
campaign under the contract and annually by the professional fund raiser at and
with each reregistration. Each professional fund
raiser shall pay an annual filing fee of $25 for each active contract filed
or on file under this Act. The fee shall be paid at initial and annual
re-registration. True and
correct copies of such contracts shall be kept on file in the offices of
the charitable organization and the professional fund raiser during the
term thereof and until the expiration of a period of 3 years subsequent to
the date the solicitation of contributions provided for therein actually
terminates. Any person who violates the provisions of this Section is
guilty of a Class A misdemeanor.
(b) Any contract between a trust or charitable organization and a
professional fund raiser must contain an estimated reasonable budget
disclosing the target amount of funds to be raised over the contract
period, the type and amount of projected expenses related thereto, and the
amount projected to be paid to the charitable organization. In addition,
the contract shall disclose the period of its duration, the geographic
scope for fundraising, describe the methods of fundraising to be employed
and provide assurance of record keeping and accountability. If the
contract provides that the professional fund raiser will retain or be paid
a stated percentage of the gross amount raised, an estimate of the target
gross amount to be raised and to be paid to charity shall be stated in the
contract. If the contract provides for payment on an hourly rate for fund
raising, the total estimated hourly amount, as well as the estimated number
of hours to be spent in fund raising, shall be stated.
(c) All professional fund raiser contracts shall be approved and
accepted by a majority of the charitable organization's trustees, and in
the case of a not for profit charitable corporation, by its president and
at least one member of its Board of Directors, and the contract shall
recite said approval and acceptance by certification by a trustee or the
(d) All professional fund raiser contracts shall disclose the
amounts of all commissions, salaries and fees charged by the fund raiser, its
agents, employees and solicitors and the method used for computing such.
(e) If the professional fund raiser, its agents, solicitors or employees
or members of the families thereof own an interest in, manage or are a
supplier or vendor of fund raising goods or services, the relationship
shall be fully disclosed in the contract, as well as the method of
determining the related supplier's or vendor's charges.
(f) If the professional fund raiser, in the course of raising funds, is
also providing charitable education program services to the public, the
charitable organization shall approve or provide to the fund raiser a
written text of all public educational program materials to be disseminated
when fund raising, copies of which shall be maintained by the parties.
(g) Any person who knowingly violates any provision of this Section may
be subject to injunctive relief and removal from office.
Failure to file a contract and pay the prescribed annual contract filing fee
prior to conducting a fund raiser for an organization shall in addition to
other relief subject the professional fund raiser to a late filing fee of
$1,000 for each contract not timely filed.
(h) A professional fund raiser or professional solicitor that
materially fails to comply with this Section shall not be entitled to
collect or retain any compensation, commission, fee or salary received in
any campaign in which the violation occurs. Upon application, by the
Attorney General to a court of competent jurisdiction, the court may apply
equitable considerations in enforcing this Section.
(Source: P.A. 90-469, eff. 8-17-97.)