Rep. Sidney H. Mathias

Filed: 4/5/2011

 

 


 

 


 
09700HB2228ham002LRB097 08135 AJO 53875 a

1
AMENDMENT TO HOUSE BILL 2228

2    AMENDMENT NO. ______. Amend House Bill 2228 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Solicitation for Charity Act is amended by
5changing Section 4 as follows:
 
6    (225 ILCS 460/4)  (from Ch. 23, par. 5104)
7    Sec. 4. (a) Every charitable organization registered
8pursuant to Section 2 of this Act which shall receive in any 12
9month period ending upon its established fiscal or calendar
10year contributions in excess of $300,000 and every charitable
11organization whose fund raising functions are not carried on
12solely by staff employees or persons who are unpaid for such
13services, if the organization shall receive in any 12 month
14period ending upon its established fiscal or calendar year
15contributions in excess of $25,000, shall file a written report
16with the Attorney General upon forms prescribed by him, on or

 

 

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1before June 30 of each year if its books are kept on a calendar
2basis, or within 6 months after the close of its fiscal year if
3its books are kept on a fiscal year basis, which written report
4shall include a financial statement covering the immediately
5preceding 12 month period of operation. The Attorney General
6may, at his or her discretion, offer first and second
7extensions to the filing deadline contained in this subsection
8(a) by administrative rule. This rule, if it is adopted, may
9take account of the separate filing extensions granted to
10charitable organizations by the United States Internal Revenue
11Service. Such financial statement shall include a balance sheet
12and statement of income and expense, and shall be consistent
13with forms furnished by the Attorney General clearly setting
14forth the following: gross receipts and gross income from all
15sources, broken down into total receipts and income from each
16separate solicitation project or source; cost of
17administration; cost of solicitation; cost of programs
18designed to inform or educate the public; funds or properties
19transferred out of this State, with explanation as to recipient
20and purpose; cost of fundraising; compensation paid to
21trustees; and total net amount disbursed or dedicated for each
22major purpose, charitable or otherwise. Such report shall also
23include a statement of any changes in the information required
24to be contained in the registration form filed on behalf of
25such organization. The report shall be signed by the president
26or other authorized officer and the chief fiscal officer of the

 

 

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1organization who shall certify that the statements therein are
2true and correct to the best of their knowledge, and shall be
3accompanied by an opinion signed by an independent certified
4public accountant that the financial statement therein fairly
5represents the financial operations of the organization in
6sufficient detail to permit public evaluation of its
7operations. Said opinion may be relied upon by the Attorney
8General.
9    (b) Every organization registered pursuant to Section 2 of
10this Act which shall receive in any 12 month period ending upon
11its established fiscal or calendar year of any year
12contributions:
13        (1) in excess of $15,000, but not in excess of $25,000,
14    during a fiscal year shall file only a simplified summary
15    financial statement disclosing only the gross receipts,
16    total disbursements, and assets on hand at the end of the
17    year on forms prescribed by the Attorney General; or
18        (2) in excess of $25,000, but not in excess of
19    $300,000, if it is not required to submit a report under
20    subsection (a) of this Section, shall file a written report
21    with the Attorney General upon forms prescribed by him, on
22    or before June 30 of each year if its books are kept on a
23    calendar basis, or within 6 months after the close of its
24    fiscal year if its books are kept on a fiscal year basis.
25    The Attorney General may, at his or her discretion, offer
26    first and second extensions to the filing deadline

 

 

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1    contained in this paragraph (2) of subsection (b) by
2    administrative rule. This rule, if it is adopted, may take
3    account of the separate filing extensions granted to
4    charitable organizations by the United States Internal
5    Revenue Service. This written report , which shall include a
6    financial statement covering the immediately preceding
7    12-month period of operation limited to a statement of such
8    organization's gross receipts from contributions, the
9    gross amount expended for charitable educational programs,
10    other charitable programs, management expense, and fund
11    raising expenses including a separate statement of the cost
12    of any goods, services or admissions supplied as part of
13    its solicitations, and the disposition of the net proceeds
14    from contributions, including compensation paid to
15    trustees, consistent with forms furnished by the Attorney
16    General. Such report shall also include a statement of any
17    changes in the information required to be contained in the
18    registration form filed on behalf of such organization. The
19    report shall be signed by the president or other authorized
20    officer and the chief fiscal officer of the organization
21    who shall certify that the statements therein are true and
22    correct to the best of their knowledge.
23    (c) For any fiscal or calendar year of any organization
24registered pursuant to Section 2 of this Act in which such
25organization would have been exempt from registration pursuant
26to Section 3 of this Act if it had not been so registered, or in

 

 

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1which it did not solicit or receive contributions, such
2organization shall file, on or before June 30 of each year if
3its books are kept on a calendar basis, or within 6 months
4after the close of its fiscal year if its books are kept on a
5fiscal year basis, instead of the reports required by
6subdivisions (a) or (b) of this Section, a statement certified
7under penalty of perjury by its president and chief fiscal
8officer stating the exemption and the facts upon which it is
9based or that such organization did not solicit or receive
10contributions in such fiscal year. The statement shall also
11include a statement of any changes in the information required
12to be contained in the registration form filed on behalf of
13such organization. The Attorney General may, at his or her
14discretion, offer first and second extensions to the filing
15deadline contained in this subsection (c) by administrative
16rule. This rule, if it is adopted, may take account of the
17separate filing extensions granted to charitable organizations
18by the United States Internal Revenue Service.
19    (d) As an alternative means of satisfying the duties and
20obligations otherwise imposed by this Section, any veterans
21organization chartered or incorporated under federal law and
22any veterans organization which is affiliated with, and
23recognized in the bylaws of, a congressionally chartered or
24incorporated organization may, at its option, annually file
25with the Attorney General the following documents:
26        (1) A copy of its Form 990, as filed with the Internal

 

 

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1    Revenue Service.
2        (2) Copies of any reports required to be filed by the
3    affiliate with the congressionally chartered or
4    incorporated veterans organization, as well as copies of
5    any reports filed by the congressionally chartered or
6    incorporated veterans organization with the government of
7    the United States pursuant to federal law.
8        (3) Copies of all contracts entered into by the
9    congressionally chartered or incorporated veterans
10    organization or its affiliate for purposes of raising funds
11    in this State, such copies to be filed with the Attorney
12    General no more than 30 days after execution of the
13    contracts.
14    (e) As an alternative means of satisfying all of the duties
15and obligations otherwise imposed by this Section, any person,
16pursuant to a contract with a charitable organization, a
17veterans organization or an affiliate described or referred to
18in subsection (d), who receives, collects, holds or transports
19as the agent of the organization or affiliate for purposes of
20resale any used or second hand personal property, including but
21not limited to household goods, furniture or clothing donated
22to the organization or affiliate may, at its option, annually
23file with the Attorney General the following documents,
24accompanied by an annual filing fee of $15:
25        (1) A notarized report including the number of
26    donations of personal property it has received on behalf of

 

 

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1    the charitable organization, veterans organization or
2    affiliate during the proceeding year. For purposes of this
3    report, the number of donations of personal property shall
4    refer to the number of stops or pickups made regardless of
5    the number of items received at each stop or pickup. The
6    report may cover the person's fiscal year, in which case it
7    shall be filed with the Attorney General no later than 90
8    days after the close of that fiscal year.
9        (2) All contracts with the charitable organization,
10    veterans organization or affiliate under which the person
11    has acted as an agent for the purposes listed above.
12        (3) All contracts by which the person agreed to pay the
13    charitable organization, veterans organization or
14    affiliate a fixed amount for, or a fixed percentage of the
15    value of, each donation of used or second hand personal
16    property. Copies of all such contracts shall be filed no
17    later than 30 days after they are executed.
18    (f) The Attorney General may seek appropriate equitable
19relief from a court or, in his discretion, cancel the
20registration of any organization which fails to comply with
21subdivision (a), (b) or (c) of this Section within the time
22therein prescribed, or fails to furnish such additional
23information as is requested by the Attorney General within the
24required time; except that the time may be extended by the
25Attorney General for a period not to exceed 60 days upon a
26timely written request and for good cause stated. Unless

 

 

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1otherwise stated herein, the Attorney General shall, by rule,
2set forth the standards used to determine whether a
3registration shall be cancelled as authorized by this
4subsection. Such standards shall be stated as precisely and
5clearly as practicable, to inform fully those persons affected.
6Notice of such cancellation shall be mailed to the registrant
7at least 15 days before the effective date thereof.
8    (g) The Attorney General in his discretion may, pursuant to
9rule, accept executed copies of federal Internal Revenue
10returns and reports as a portion of the foregoing annual
11reporting in the interest of minimizing paperwork, except there
12shall be no substitute for the independent certified public
13accountant audit opinion required by this Act.
14    (h) The Attorney General after canceling the registration
15of any trust or organization which fails to comply with this
16Section within the time therein prescribed may by court
17proceedings, in addition to all other relief, seek to collect
18the assets and distribute such under court supervision to other
19charitable purposes.
20    (i) Every trustee, person, and organization required to
21file an annual report shall pay a filing fee of $15 with each
22annual financial report filed pursuant to this Section. If a
23proper and complete annual report is not timely filed, a late
24filing fee of an additional $100 is imposed and shall be paid
25as a condition of filing a late report. Reports submitted
26without the proper fee shall not be accepted for filing.

 

 

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1Payment of the late filing fee and acceptance by the Attorney
2General shall both be conditions of filing a late report. All
3late filing fees shall be used to provide charitable trust
4enforcement and dissemination of charitable trust information
5to the public and shall be maintained in a separate fund for
6such purpose known as the Illinois Charity Bureau Fund.
7    (j) There is created hereby a separate special fund in the
8State Treasury to be known as the Illinois Charity Bureau Fund.
9That Fund shall be under the control of the Attorney General,
10and the funds, fees, and penalties deposited therein shall be
11used by the Attorney General to enforce the provisions of this
12Act and to gather and disseminate information about charitable
13trustees and organizations to the public.
14(Source: P.A. 96-488, eff. 1-1-10.)
 
15    Section 10. The Charitable Trust Act is amended by changing
16Section 7 as follows:
 
17    (760 ILCS 55/7)  (from Ch. 14, par. 57)
18    Sec. 7. (a) Except as otherwise provided, every trustee
19subject to this Act shall, in addition to filing copies of the
20instruments previously required, file with the Attorney
21General periodic annual written reports under oath, setting
22forth information as to the nature of the assets held for
23charitable purposes and the administration thereof by the
24trustee, in accordance with rules and regulations of the

 

 

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1Attorney General.
2    (b) The Attorney General shall make rules and regulations
3as to the time for filing reports, the contents thereof, and
4the manner of executing and filing them. He may classify trusts
5and other relationships concerning property held for a
6charitable purpose as to purpose, nature of assets, duration of
7the trust or other relationship, amount of assets, amounts to
8be devoted to charitable purposes, nature of trustee, or
9otherwise, and may establish different rules for the different
10classes as to time and nature of the reports required to the
11ends (1) that he shall receive reasonably current, annual
12reports as to all charitable trusts or other relationships of a
13similar nature, which will enable him to ascertain whether they
14are being properly administered, and (2) that periodic reports
15shall not unreasonably add to the expense of the administration
16of charitable trusts and similar relationships. The Attorney
17General may suspend the filing of reports as to a particular
18charitable trust or relationship for a reasonable,
19specifically designated time upon written application of the
20trustee filed with the Attorney General and after the Attorney
21General has filed in the register of charitable trusts a
22written statement that the interests of the beneficiaries will
23not be prejudiced thereby and that periodic reports are not
24required for proper supervision by his office.
25    (c) A copy of an account filed by the trustee in any court
26having jurisdiction of the trust or other relationship, if the

 

 

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1account has been approved by the court in which it was filed
2and notice given to the Attorney General as an interested
3party, may be filed as a report required by this Section.
4    (d) The first report for a trust or similar relationship
5hereafter established, unless the filing thereof is suspended
6as herein provided, shall be filed not later than one year
7after any part of the income or principal is authorized or
8required to be applied to a charitable purpose. If any part of
9the income or principal of a trust previously established is
10authorized or required to be applied to a charitable purpose at
11the time this Act takes effect, the first report, unless the
12filing thereof is suspended, shall be filed within 6 months
13after the effective date of this Act. In addition, every
14trustee registered hereunder that received more than $25,000 in
15revenue during a trust fiscal year or has possession of more
16than $25,000 of assets at any time during a fiscal year shall
17file an annual financial report within 6 months of the close of
18the trust's or organization's fiscal year, and if a calendar
19year the report shall be due on each June 30 of the following
20year. The Attorney General may, at his or her discretion, offer
21first and second extensions to the filing deadline contained in
22this subsection (d) by administrative rule. This rule, if it is
23adopted, may take account of the separate filing extensions
24granted to charitable trusts by the United States Internal
25Revenue Service. Every trustee registered hereunder that did
26not receive more than $25,000 in revenue or hold more than

 

 

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1$25,000 in assets during a fiscal year shall file only a
2simplified summary financial statement disclosing only the
3gross receipts, total disbursements, and assets on hand at the
4end of the year, on forms prescribed by the Attorney General.
5    (e) The periodic reporting provisions of this Act do not
6apply to any trustee of a trust which is the subject matter of
7an adversary proceeding pending in the circuit court in this
8State. However, upon commencement of the proceeding the trustee
9shall file a report with the Attorney General informing him of
10that fact together with the title and number of the cause and
11the name of the court. Upon entry of final judgment in the
12cause the trustee shall in like manner report that fact to the
13Attorney General and fully account for all periods of
14suspension.
15    (f) The Attorney General in his discretion may, pursuant to
16rules and regulations promulgated by the Attorney General,
17accept executed copies of federal Internal Revenue returns and
18reports as a portion of the annual reporting. The report shall
19include a statement of any changes in purpose or any other
20information required to be contained in the registration form
21filed on behalf of the organization. The report shall be signed
22under penalty of perjury by the president and the chief fiscal
23officer of any corporate organization or by 2 trustees if not a
24corporation. One signature shall be accepted if there is only
25one officer or trustee.
26    (g) The Attorney General shall cancel the registration of

 

 

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1any trust or organization that wilfully fails to comply with
2subsections (a), (b), (c) or (d) of this Section within the
3time prescribed, and the assets of the organization may through
4court proceedings be collected, debts paid and proceeds
5distributed under court supervision to other charitable
6purposes upon an action filed by the Attorney General as law
7and equity allow. Upon timely written request, the due date for
8filing may be extended by the Attorney General for a period of
960 days. Notice of registration cancellation shall be mailed by
10regular mail to the registrant at the registration file address
11or to its registered agent or president 21 days before the
12effective date of the cancellation. Reports submitted after
13registration is canceled shall require reregistration.
14    (h) Every trustee registered hereunder that received in any
15fiscal year more than $25,000 in revenue or held more than
16$25,000 in assets shall pay a fee of $15 along with each annual
17financial report filed pursuant to this Act. If an annual
18report is not timely filed, a late filing fee of an additional
19$100 is imposed and shall be paid as a condition of filing a
20late report. Reports submitted without the proper fee shall not
21be accepted for filing.
22(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)".