Public Act 90-0469 of the 90th General Assembly
Public Act 90-0469
HB1211 Enrolled LRB9004043THpk
AN ACT relating to charitable organizations and
activities, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Solicitation for Charity Act is amended
by changing Sections 2, 3, 4, 5, 6, 7, 17, and 21 and adding
Sections 22 and 23 as follows:
(225 ILCS 460/2) (from Ch. 23, par. 5102)
Sec. 2. (a) Every charitable organization, except as
otherwise provided in Section 3 of this Act, which solicits
or intends to solicit contributions from persons in this
State or which is located in this State, by any means
whatsoever shall, prior to any solicitation, file with the
Attorney General upon forms prescribed by him, a registration
statement, accompanied by a registration fee of $15, which
statement shall include the following certified information:
1. The name of the organization and the name or
names under which it intends to solicit contributions.
2. The names and addresses of the officers,
directors, trustees, and chief executive officer of the
organization.
3. The addresses of the organization and the
addresses of any offices in this State. If the
organization does not maintain a principal office, the
name and address of the person having custody of its
financial records.
4. Where and when the organization was legally
established, the form of its organization and its tax
exempt status.
5. The purpose for which the organization is
organized and the purpose or purposes for which the
contributions to be solicited will be used.
6. The date on which the fiscal year of the
organization ends.
7. Whether the organization is authorized by any
other governmental authority to solicit contributions and
whether it is or has ever been enjoined by any court from
soliciting contributions.
8. The names and addresses of any professional fund
raisers who are acting or have agreed to act on behalf of
the organization.
9. Methods by which solicitation will be made.
10. Copies of contracts between charitable
organizations and professional fund raisers relating to
financial compensation or profit to be derived by the
professional fund raisers. Where any such contract is
executed after filing of registration statement, a copy
thereof shall be filed within 10 days of the date of
execution.
11. Board, group, or individual having final
discretion as to the distribution and use of
contributions received.
(b) The registration statement shall be signed by the
president or other authorized officer and the chief fiscal
officer of the organization.
(c) Such registration shall remain in effect unless it
is either cancelled as provided in this Act or withdrawn by
the organization.
(d) Every registered organization shall notify the
Attorney General within 10 days of any change in the
information required to be furnished by such organization
under paragraphs 1 through 11 of subdivision (a) of this
Section.
(e) In no event shall a registration of a charitable
organization continue, or be continued, in effect after the
date such organization should have filed, but failed to file,
an annual report in accordance with the requirements of
Section 4 of this Act, and such organization shall not be
eligible to file a new registration until it shall have filed
the required annual report with the Attorney General. If such
report is subsequently filed and accepted by the Attorney
General such organization may file a new registration. If a
person, trustee, or organization fails to timely register or
maintain a registration of a trust or organization as
required by this Act or if its registration is cancelled as
provided in this Act, and if that trust or organization
remains in existence and by law is required to be registered,
in order to re-register or file a late registration a current
registration statement must be filed accompanied by financial
reports in the form required herein for all past years. In
all instances where re-registration and late registration are
allowed, the new registration materials must be filed,
accompanied by a penalty registration fee of $200.
(f) Subject to reasonable rules and regulations adopted
by the Attorney General, the register, registration
statements, annual reports, financial statements,
professional fund raisers' contracts, bonds, applications for
registration and re-registration, and other documents
required to be filed with the Attorney General shall be open
to public inspection.
Every person subject to this Act shall maintain accurate
and detailed books and records at the principal office of the
organization to provide the information required herein. All
such books and records shall be open to inspection at all
reasonable times by the Attorney General or his duly
authorized representative.
(g) Where any local, county or area division of a
charitable organization is supervised and controlled by a
superior or parent organization, incorporated, qualified to
do business, or doing business within this State, such local,
county or area division shall not be required to register
under this Section if the superior or parent organization
files a registration statement on behalf of the local, county
or area division in addition to or as part of its own
registration statement. Where a registration statement has
been filed by a superior or parent organization as provided
in Section 2(g) of this Act, it shall file the annual report
required under Section 4 of this Act on behalf of the local,
county or area division in addition to or as part of its own
report, but the accounting information required under Section
4 of this Act shall be set forth separately and not in
consolidated form with respect to every local, county or area
division which raises or expends more than $4,000.
(h) The Attorney General may make rules of procedure and
regulations necessary for the administration of this Act.
Copies of all such rules of procedure and regulations and of
all changes therein, duly certified by the Attorney General,
shall be filed in the office of the Secretary of State.
(i) If a person, organization, or trustee fails to
register or if maintain registration of a trust or
organization is cancelled as provided in this Act Section,
the person, organization or trustee is subject to injunction,
to removal, to account, and to appropriate other relief
before the circuit court exercising chancery jurisdiction. In
addition to any other relief granted under this Act, the
court shall impose a civil penalty of not less than $500 nor
more than $1,000 against each and every trustee,
organization, and person who fails to register or who fails
to maintain a registration required under this Act. The
collected penalty funds shall be used for charitable trust
enforcement and for providing charitable trust information to
the public.
(Source: P.A. 87-755.)
(225 ILCS 460/3) (from Ch. 23, par. 5103)
Sec. 3. (a) Upon initial filing of a registration
statement pursuant to Section 2 of this Act and notification
by the Attorney General of his determination that the
organizational purposes or circumstances specified in this
paragraph for exemption are actual and genuine, the following
entities shall be exempt from all the report filing
provisions and requirements of this Act, except for the
requirements set forth in Section 2 of this Act:
1. A corporation sole or other religious
corporation, trust or organization incorporated or
established for religious purposes, nor to any agency or
organization incorporated or established for charitable,
hospital or educational purposes and engaged in
effectuating one or more of such purposes, that is
affiliated with, operated by, or supervised or controlled
by a corporation sole or other religious corporation,
trust or organization incorporated or established for
religious purposes, nor to other religious agencies or
organizations which serve religion by the preservation of
religious rights and freedom from persecution or
prejudice or by fostering religion, including the moral
and ethical aspects of a particular religious faith.
2. Any charitable organization which does not
intend to solicit and receive and does not actually
receive contributions in excess of $15,000 $10,000 during
any 12 month period ending December 31 of any year,
provided all of its fund raising functions are carried on
by persons who are unpaid for such services. However, if
the gross contributions received by such charitable
organization during any 12 month period ending December
31 of any year shall be in excess of $15,000 $10,000, it
shall file reports as required under this Act and the
provisions of this Act shall apply.
(b) The following persons shall not be required to
register with the Attorney General:
1. The University of Illinois, Southern Illinois
University, Eastern Illinois University, Illinois State
Normal University, Northern Illinois University, Western
Illinois University, all educational institutions that
are recognized by the State Board of Education or that
are accredited by a regional accrediting association or
by an organization affiliated with the National
Commission on Accrediting, any foundation having an
established identity with any of the aforementioned
educational institutions, any other educational
institution confining its solicitation of contributions
to its student body, alumni, faculty and trustees, and
their families, or a library established under the laws
of this State, provided that the annual financial report
of such institution or library shall be filed with the
State Board of Education, Governor, Illinois State
Library, County Library Board or County Board, as
provided by law.
2. Fraternal, patriotic, social, educational,
alumni organizations and historical societies when
solicitation of contributions is confined to their
membership. This exemption shall be extended to any
subsidiary of a parent or superior organization exempted
by Sub-paragraph 2 of Paragraph (b) of Section 3 of this
Act where such solicitation is confined to the membership
of the subsidiary, parent or superior organization.
3. Persons requesting any contributions for the
relief or benefit of any individual, specified by name at
the time of the solicitation, if the contributions
collected are turned over to the named beneficiary, first
deducting reasonable expenses for costs of banquets, or
social gatherings, if any, provided all fund raising
functions are carried on by persons who are unpaid,
directly or indirectly, for such services.
4. Any bona fide union, bona fide political
organization or bona fide political action committee,
which does not solicit funds for a charitable purpose.
5. Any charitable organization receiving an
allocation from an incorporated community chest or united
fund, provided such chest or fund is complying with the
provisions of this Act relating to registration and
filing of annual reports with the Attorney General, and
provided such organization does not actually receive, in
addition to such allocation, contributions in excess of
$4,000 during any 12 month period ending June 30th of any
year, and provided further that all the fund raising
functions of such organization are carried on by persons
who are unpaid for such services. However, if the gross
contributions other than such allocation received by such
charitable organization during any 12 month period ending
June 30th of any year shall be in excess of $4,000, it
shall within 30 days after the date it shall have
received such contributions in excess of $4,000 register
with the Attorney General as required by Section 2.
6. A bona fide organization of volunteer firemen,
or a bona fide auxiliary or affiliate of such
organization, provided all its fund raising activities
are carried on by members of such an organization or an
affiliate thereof and such members receive no
compensation, directly or indirectly, therefor.
7. Any charitable organization operating a nursery
for infants awaiting adoption providing that all its fund
raising activities are carried on by members of such an
organization or an affiliate thereof and such members
receive no compensation, directly or indirectly therefor.
8. Any corporation established by the Federal
Congress that is required by federal law to submit annual
reports of its activities to Congress containing itemized
accounts of all receipts and expenditures after being
duly audited.
9. Any boys' club which is affiliated with the
Boys' Club of America, a corporation chartered by
Congress; provided, however, that such an affiliate
properly files the reports required by the Boys' Club of
America and that the Boys' Club of America files with the
Government of the United States the reports required by
its federal charter.
10. 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
incorporated veterans organization; provided, however,
that the affiliate properly files the reports required by
the congressionally chartered or incorporated veterans
organization, that the congressionally chartered or
incorporated veterans organization files with the
government of the United States the reports required by
its federal charter, and that copies of such federally
required reports are filed with the Attorney General.
11. Any parent-teacher organization that is
controlled by teachers and parents of children attending
a particular public or private school for which the
organization is named and solicits contributions for the
benefit of that particular school; provided that:
(i) the school is specified by name at the
time the solicitation is made;
(ii) all of the contributions are turned over
to the school, after first deducting reasonable
expenses for fundraising and parent-teacher
activities;
(iii) all fundraising functions are carried on
by persons who are not paid, either directly or
indirectly, for their fundraising services;
(iv) the total contributions, less reasonable
fundraising expenses, do not exceed $50,000 in any
calendar year;
(v) the organization provides the school at
least annually with a complete accounting of all
contributions received; and
(vi) the governing board of the school
annually certifies to the Attorney General that the
parent-teacher organization has provided the school
with a full accounting and that the organization has
provided benefits and contributions to the school.
(Source: P.A. 87-755.)
(225 ILCS 460/4) (from Ch. 23, par. 5104)
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 $150,000 $100,000,
and every charitable organization whose fund raising
functions are not 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
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 amount disbursed or dedicated for each major purpose,
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 operations. Said opinion may be relied upon by the
Attorney General.
(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
contributions in excess of $15,000, but not in excess of
$150,000, if it is not required to submit a report under
subsection (a) of this Section, $100,000 and all of whose
fund raising functions are carried on by persons who are
unpaid for such services 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 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 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.
(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 report in
the form of an affidavit of its president and chief fiscal
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 affidavit
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.
(d) As an alternative means of satisfying the duties and
obligations otherwise imposed by this Section Act, 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 incorporated organization may, at its option, annually
file with the Attorney General the following documents:
(1) A copy of its Form 990, as filed with the
Internal Revenue Service.
(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
incorporated veterans organization with the government of
the United States pursuant to federal law.
(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.
(e) As an alternative means of satisfying all of the
duties and obligations otherwise imposed by this Section Act,
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,
accompanied by an annual filing fee of $15:
(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 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 days after the close of that
fiscal year.
(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.
(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.
(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 required time; except that the time may be extended by
the Attorney General for a period not to exceed 60 days 3
months 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.
(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 shall be no substitute for the independent certified
public accountant CPA audit opinion required by this Act.
(h) The Attorney General after canceling the
registration of any trust or organization which fails to
comply with subsections (a), (b) or (c) of this 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
charitable purposes.
(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
filing fee of an additional $100 is imposed and shall be paid
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 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.
(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 Act and to gather and disseminate
information about charitable trustees and organizations to
the public.
(Source: P.A. 89-626, eff. 8-9-96.)
(225 ILCS 460/5) (from Ch. 23, par. 5105)
Sec. 5. Any charitable organization, trustee, person,
professional fund raiser or professional solicitor, which or
who solicits contributions in this State, but does not
maintain an office within the State or cannot be located
within the State shall be subject to service of process, as
follows:
(a) By service thereof on its registered agent within
the State, or if there be no such registered agent, then upon
the person who has been designated in the registration
statement as having custody of books and records within this
State; where service is effected upon the person so
designated in the registration statement a copy of the
process shall, in addition, be mailed to the registrant's
last known address;
(b) When any corporate person has solicited
contributions in this State, but maintains no office within
the State, has no registered agent within the State, and no
designated person having custody of its books and records
within the State, or when a registered agent or person having
custody of its books and records within the State cannot be
found as shown by the return of the sheriff of the county in
which such registered agent or person having custody of books
and records has been represented by the charitable
organization or person as maintaining an office, service may
be made by delivering to and leaving with the Secretary of
State, or with any deputy or clerk in the corporation
department of his office, three copies thereof;
(c) Following service upon the Secretary of State the
provisions of law relating to service of process on foreign
corporations shall thereafter govern;
(d) Long arm service in accordance with law;
(e) The solicitation of any contribution within this
State by any charitable organization or any person shall be
deemed to be their agreement that any process against it or
him which is so served in accordance with the provisions of
this Section shall be of the same legal force and effect as
if served personally within this State and that the courts of
this State shall have personal jurisdiction over such
organizations, persons and trustees;
(f) Venue over persons required to be registered under
this Act shall be proper in any county where the Attorney
General accepts and maintains the list of registrations. In
furtherance of judicial economy, actions filed for violation
of this Act may name multiple trustees, trusts, and
organizations in a single or joint action where those joined
have each engaged in similar conduct in violation of this Act
or where similar relief is sought against those defendants
for violation of this Act.
(Source: P.A. 87-755.)
(225 ILCS 460/6) (from Ch. 23, par. 5106)
Sec. 6. (a) No person shall act as a professional fund
raiser or allow a professional fund raiser entity he owns,
manages or controls to act for a charitable organization
required to register pursuant to Section 2 of this Act, or
for any organization as described in Section 3 of this Act
before he has registered himself or the entity with the
Attorney General or after the expiration or cancellation of
such registration or any renewal thereof. Applications for
registration and re-registration shall be in writing, under
oath, in the form prescribed by the Attorney General. A
registration fee of $100 shall be paid with each registration
and upon each re-registration. Registration and
re-registration can proceed only if all financial reports
have been filed in proper form and all fees have been paid in
full. If the applicant intends to or does take control or
possession of charitable funds, the applicant shall at the
time of making application, file with, and have approved by,
the Attorney General a bond in which the applicant shall be
the principal obligor, in the sum of $10,000, with one or
more corporate sureties licensed to do business in this State
whose liability in the aggregate will at least equal such
sum. The bond shall run to the Attorney General for the use
of the State and to any person who may have a cause of action
against the obligor of the bond for any malfeasance or
misfeasance in the conduct of such solicitation; provided,
that the aggregate limit of liability of the surety to the
State and to all such persons shall, in no event, exceed the
sum of such bond. Registration or re-registration when
effected shall be for a period of one year, or a part
thereof, expiring on the 30th day of June, and may be renewed
upon written application, under oath, in the form prescribed
by the Attorney General and the filing of the bond for
additional one year periods. Every professional fund raiser
required to register pursuant to this Act shall file an
annual written report with the Attorney General containing
such information as he may require by rule. Certification
shall be required for only information within the
professional fund raiser's knowledge.
(b) Upon filing a complete registration statement, a
professional fund raiser shall be given a registration number
and shall be considered registered. If the materials
submitted are determined to be inaccurate or incomplete, the
Attorney General shall notify the professional fund raiser of
his findings and the defect and that within 30 days his
registration will be cancelled unless the defect is cured
within said time.
(c) Every professional fund raiser registered under this
Act who takes possession or control of charitable funds
directly, indirectly, or through an escrow shall submit a
full written accounting to the charitable organization of all
funds it or its agents collected on behalf of the charitable
organization during the 6 month period ended June 30 of each
year, and file a copy of the accounting with the Attorney
General. The accounting shall be in writing under oath and
be signed and made on forms as prescribed by the Attorney
General and shall be filed by the following September 30 of
each year; however, within the time prescribed, and for good
cause, the Attorney General may grant a 60 day extension of
the due date.
(d) Every professional fund raiser registered pursuant
to this Act shall also file calendar year written financial
reports with the Attorney General containing such information
as he may require, on forms prescribed by him, as well as
separate financial reports for each separate fund raising
campaign conducted. The written report shall be filed under
oath on or before April 30 of the following calendar year and
be signed and verified under penalty of perjury within the
time prescribed. An annual report fee of $25 shall be paid to
the Attorney General with the filing of that report. If the
report is not timely filed, a late filing fee shall result
and must be paid prior to re-registration. The late filing
fee shall be calculated at $200 for each and every separate
fundraising campaign conducted during the report year. For
good cause, the Attorney General may grant a 30 day extension
of the due date, in which case a late filing fee shall not be
imposed until the expiration of the extension period. A copy
of the report shall also be given to the charitable
organization by the due date of filing. A professional fund
raiser shall only be required to verify information actually
available to the professional fund raiser, but in any event
an annual report must be timely filed.
(e) No person convicted of a felony may register as a
professional fund raiser, and no person convicted of a
misdemeanor involving fiscal wrongdoing, breach of fiduciary
duty or a violation of this Act may register as a
professional fund raiser for a period of 5 years from the
date of the conviction or the date of termination of the
sentence or probation, if any, whichever is later. This
subsection shall not apply to charitable organizations that
have as their primary purpose the rehabilitation of criminal
offenders, the reintegration of criminal offenders into
society, the improvement of the criminal justice system or
the improvement of conditions within penal institutions.
(f) A professional fund raiser may not cause or allow
independent contractors to act on its behalf in soliciting
charitable contributions other than registered professional
solicitors. A professional fund raiser must maintain the
names, addresses and social security numbers of all of its
professional solicitors for a period of at least 2 years.
(g) Any person who knowingly violates the provisions of
subsections (a), (e) and (f) of this Section is guilty of a
Class 4 felony. Any person who fails after being given
notice of delinquency to file written financial reports
required by subsections (c) and (d) of this Section which is
more than 2 months past its due date is guilty of a Class A
misdemeanor.
(h) Any person who violates any of the provisions of
this Section shall be subject to civil penalties of up to
$5,000 for each violation and shall not be entitled to keep
or receive fees, salaries, commissions or any compensation as
a result or on account of the solicitations or fund raising
campaigns, and at the request of the Attorney General or the
charitable organization, a court may order that such be
forfeited and paid toward and used for a charitable purpose
as the court in its discretion determines is appropriate or
placed in the Illinois Charity Bureau Fund.
(Source: P.A. 87-755.)
(225 ILCS 460/7) (from Ch. 23, par. 5107)
Sec. 7. (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 between professional
fund raisers and charitable trustees and organizations shall
be in writing. A true and correct copy of each contract shall
be filed by the professional fund raiser and the charitable
trustee or organization organizations 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 its
implementation. 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 corporation's president.
(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. 87-755.)
(225 ILCS 460/17) (from Ch. 23, par. 5117)
Sec. 17. In any solicitation to the public for a
charitable organization by a professional fund raiser or
professional solicitor:
(a) The public member shall be promptly informed by
statement in verbal communications and by clear and
unambiguous disclosure in written materials that the
solicitation is being made by a paid professional fund raiser
or solicitor if such disclosure is requested by the person
solicited. The fund raiser, solicitor, and materials used
shall also provide the professional fund raiser's name and a
statement that contracts and reports regarding the charity
are on file with the Illinois Attorney General and
additionally, in verbal communications, the solicitor's true
name must be provided.
(b) If the professional fund raiser employs or uses a
contract which provides that it will be paid or retain a
certain percentage of the gross amount of each contribution
or shall be paid an hourly rate for solicitation, or the
contract provides the charity will receive a fixed amount or
a fixed percentage of each contribution, the professional
fund raiser and person soliciting shall disclose to persons
being solicited the percentage amount retained or hourly rate
paid to the professional fund raiser and solicitor pursuant
to the contract, and the amount or the percentage to be
received by the charitable organization from each
contribution, if such disclosure is requested by the person
solicited.
(c) Any person or professional fund raiser, professional
solicitor soliciting charitable contributions from the public
on behalf of a public safety personnel organization shall not
misrepresent that they are in fact a law enforcement person,
firefighter, or member of the organization for whom the
contributions are being raised and if requested by the person
solicited they shall promptly provide their actual name, the
exact legal name of the organization with which they are
employed and its correct address, as well as, the exact name
of the charitable organization.
(Source: P.A. 87-755.)
(225 ILCS 460/21) (from Ch. 23, par. 5121)
Sec. 21. Illinois Charity Bureau Fund. The court in its
discretion may place costs, fines, and penalties collected
pursuant to this Act into the Illinois Charity Bureau
Attorney General's Charitable Trust Enforcement Fund created
in Section 19 of the Charitable Trust Act and such shall be
expended by the Attorney General for the enforcement and
administration of this Act to protect the public interest in
charitable funds and subject to transfer by appropriation of
said funds to the Attorney General's Grant Fund at the
Attorney General's direction.
(Source: P.A. 87-755.)
(225 ILCS 460/22 new)
Sec. 22. All fees and penalties collected by the
Attorney General pursuant to this Act shall be paid and
deposited into the Illinois Charity Bureau Fund in the State
Treasury. Moneys in the Fund shall be appropriated to the
Attorney General for charitable trust enforcement purposes as
an addition to other appropriated funds and be used by the
Attorney General to provide the public with information
concerning charitable trusts and organizations and for
charitable trust enforcement activities.
(225 ILCS 460/23 new)
Sec. 23. As a part of charitable trust enforcement and
public disclosure, a task force composed of citizens chosen
by the Attorney General to be known as the Attorney General's
Charitable Advisory Council shall be and is hereby formed for
a 3-year period. This Advisory Council shall study issues of
charitable giving, volunteerism, and fundraising in this
State and specifically shall evaluate and study the concept
of establishing a peer review rating system of the financial
reports and operations of charitable trusts and organizations
registered in Illinois. The ratings should seek to evaluate
the performance of those organizations in terms of program
services delivered for each dollar spent. The purpose of the
ratings of a charity's performance is to provide those
performance ratings to the donating public. The Advisory
Council shall consider and report as to the feasibility of
rating all charitable organizations registered or of
establishing a system of rating only those seeking to be
rated and allowing those rated to represent the rating during
solicitations. The Advisory Council members shall serve
without compensation, and the expenses of the Council may be
paid for out of the Illinois Charity Bureau Fund in an amount
not to exceed $10,000 per year and in the discretion of the
Attorney General.
Section 10. The Charitable Trust Act is amended by
changing Sections 2, 3, 5, 7, 12, and 19 as follows:
(760 ILCS 55/2) (from Ch. 14, par. 52)
Sec. 2. This Act applies to any and all trustees trustee,
as defined in Section 3, holding property of a value in
excess of $4,000.
(Source: Laws 1963, p. 1462.)
(760 ILCS 55/3) (from Ch. 14, par. 53)
Sec. 3. "Trustee" means any person, individual, group of
individuals, association, corporation, not-for-profit
corporation, estate representative, or other legal entity
holding property for or solicited for any charitable purpose;
or any chief operating officer, director, executive director
or owner of a corporation soliciting or holding property for
a charitable purpose.
(Source: P.A. 87-755.)
(760 ILCS 55/5) (from Ch. 14, par. 55)
Sec. 5. (a) The Attorney General shall establish and
maintain a register of trustees subject to this Act and of
the particular trust or other relationship under which they
hold property for charitable purposes and, to that end, shall
conduct whatever investigation is necessary, and shall obtain
from public records, court officers, taxing authorities,
trustees and other sources, copies of instruments, reports
and records and whatever information is needed for the
establishment and maintenance of the register.
(b) A registration statement shall be signed and
verified under penalty of perjury by 2 officers of a
corporate charitable organization or by 2 trustees if not a
corporate organization. One signature will be accepted if
there is only one officer or one trustee. A registration fee
of $15 shall be paid with each initial registration. If a
person, trustee or organization fails to maintain a
registration of a trust or organization as required by this
Act, and its registration is cancelled as provided in this
Act, and if that trust or organization remains in existence
and by law is required to be registered, in order to
re-register, a new registration must be filed accompanied by
required financial reports, and in all instances where
re-registration is required, submitted, and allowed, the new
re-registration materials must be filed, accompanied by a
re-registration fee of $200.
(c) If a person or trustee fails to register or maintain
registration of a trust or organization as provided in this
Section, the person or trustee is subject to injunction, to
removal, to account, and to appropriate other relief before a
court of competent jurisdiction exercising chancery
jurisdiction. In the event of such action, the court shall
impose, as an additional surcharge, a civil penalty of not
less that $500 nor more than $1,000 against any trustee or
other person who fails to register or to maintain a
registration required under this Act. The collected penalty
shall be used for charitable trust enforcement and for
providing charitable trust information to the public.
(Source: P.A. 87-755.)
(760 ILCS 55/7) (from Ch. 14, par. 57)
Sec. 7. (a) Except as otherwise provided, every trustee
subject to this Act shall, in addition to filing copies of
the instruments previously required, file with the Attorney
General periodic annual written reports under oath, setting
forth information as to the nature of the assets held for
charitable purposes and the administration thereof by the
trustee, in accordance with rules and regulations of the
Attorney General.
(b) The Attorney General shall make rules and
regulations as to the time for filing reports, the contents
thereof, and the manner of executing and filing them. He may
classify trusts and other relationships concerning property
held for a charitable purpose as to purpose, nature of
assets, duration of the trust or other relationship, amount
of assets, amounts to be devoted to charitable purposes,
nature of trustee, or otherwise, and may establish different
rules for the different classes as to time and nature of the
reports required to the ends (1) that he shall receive
reasonably current, annual reports as to all charitable
trusts or other relationships of a similar nature, which will
enable him to ascertain whether they are being properly
administered, and (2) that periodic reports shall not
unreasonably add to the expense of the administration of
charitable trusts and similar relationships. The Attorney
General may suspend the filing of reports as to a particular
charitable trust or relationship for a reasonable,
specifically designated time upon written application of the
trustee filed with the Attorney General and after the
Attorney General has filed in the register of charitable
trusts a written statement that the interests of the
beneficiaries will not be prejudiced thereby and that
periodic reports are not required for proper supervision by
his office.
(c) A copy of an account filed by the trustee in any
court having jurisdiction of the trust or other
relationship,; if the account has been approved by the court
in which it was filed and notice given to the Attorney
General as an interested party, may be filed as a report
required by this Section.
(d) The first report for a trust or similar relationship
hereafter established, unless the filing thereof is suspended
as herein provided, shall be filed not later than one year
after any part of the income or principal is authorized or
required to be applied to a charitable purpose. If any part
of the income or principal of a trust previously established
is authorized or required to be applied to a charitable
purpose at the time this Act takes effect, the first report,
unless the filing thereof is suspended, shall be filed within
6 months after the effective date of this Act. In addition,
every trustee registered hereunder that received more than
$15,000 in revenue during a trust fiscal year or has
possession of more than $15,000 of assets at any time during
a fiscal year shall file an annual financial report within 6
months of the close of the trust's or organization's fiscal
year, and if a calendar year the report shall be due on each
June 30 of the following year. Every trustee registered
hereunder that did not receive more than $15,000 in revenue
or hold more than $15,000 in assets 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 year, on forms prescribed by
the Attorney General.
(e) The periodic reporting provisions of this Act do not
apply to any trustee of a trust which is the subject matter
of an adversary proceeding pending in the circuit court in
this State. However, upon commencement of the proceeding the
trustee shall file a report with the Attorney General
informing him of that fact together with the title and number
of the cause and the name of the court. Upon entry of final
judgment in the cause the trustee shall in like manner report
that fact to the Attorney General and fully account for all
periods of suspension.
(f) The Attorney General in his discretion may, pursuant
to rules and regulations promulgated by the Attorney General,
accept executed copies of federal Internal Revenue returns
and reports as a portion of the annual reporting. The report
shall include a statement of any changes in purpose or any
other information required to be contained in the
registration form filed on behalf of the organization. The
report shall be signed under penalty of perjury by the
president and the chief fiscal officer of any corporate
organization or by 2 trustees if not a corporation. One
signature shall be accepted if there is only one officer or
trustee.
(g) The Attorney General shall cancel the registration
of any trust or organization that wilfully fails to comply
with subsections (a), (b), (c) or (d) of this Section within
the time prescribed, and the assets of the organization may
through court proceedings be collected, debts paid and
proceeds distributed under court supervision to other
charitable purposes upon an action filed by the Attorney
General as law and equity allow. Upon timely written
request, the due date for filing may be extended by the
Attorney General for a period of 60 days. Notice of
registration cancellation shall be mailed by regular mail to
the registrant at the registration file address or to its
registered agent or president 21 days before the effective
date of the cancellation. Reports submitted after
registration is canceled shall require reregistration.
(h) Every trustee registered hereunder that received in
any fiscal year more than $15,000 in revenue or held more
than $15,000 in assets shall pay a fee of $15 along with each
annual financial report filed pursuant to this Act. If an
annual report is not timely filed, a late filing fee of an
additional $100 is imposed and shall be paid as a condition
of filing a late report. Reports submitted without the
proper fee shall not be accepted for filing.
(Source: P.A. 87-755.)
(760 ILCS 55/12) (from Ch. 14, par. 62)
Sec. 12. The Attorney General may institute appropriate
proceedings to secure compliance with this Act and to secure
the proper administration of any trust or other relationship
to which this Act applies. Venue shall be proper in any
county where the Attorney General accepts and maintains the
list of registrations. In furtherance of judicial economy,
actions filed for violation of this Act may name multiple
trustees, trusts, and organizations in a joint action where
each has engaged in similar conduct in violation of this Act
or where similar relief is sought against those defendants
for violation of this Act.
(Source: P.A. 87-755.)
(760 ILCS 55/19) (from Ch. 14, par. 69)
Sec. 19. There is created in the State Treasury the
Illinois Charity Bureau Fund. All fees and penalties
collected by the Attorney General pursuant to this Act shall
be deposited in the Illinois Charity Bureau Fund in the State
Treasury. Moneys in the Fund shall be appropriated to the
Attorney General for charitable trust enforcement purposes
and dissemination of public information. There is created in
the State Treasury the Attorney General's Charitable Trust
Enforcement Fund. The court in its discretion may place
costs, fines and penalties collected pursuant to this Act
into the enforcement fund and the monies shall be expended by
the Attorney General for the enforcement and administration
of this Act to protect the public interest in charitable
funds and subject to transfer of the funds to the Attorney
General's Grant Fund at the Attorney General's direction.
(Source: P.A. 87-755.)
Section 15. The State Finance Act is amended by changing
Section 5.321 as follows:
(30 ILCS 105/5.321) (from Ch. 127, par. 141.321)
Sec. 5.321. The Illinois Charity Bureau Attorney
General's Charitable Trust Enforcement Fund.
(Source: P.A. 87-755; 87-895.)
Section 99. Effective date. This Act takes effect upon
becoming law.