97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5516

 

Introduced 2/15/2012, by Rep. Jil Tracy

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 460/2  from Ch. 23, par. 5102
225 ILCS 460/4  from Ch. 23, par. 5104

    Amends the Solicitation for Charity Act. Reduces specified penalty registrations to $25 from $200 and a late annual report filing fee to $50 from $100.


LRB097 20223 CEL 65662 b

 

 

A BILL FOR

 

HB5516LRB097 20223 CEL 65662 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Solicitation for Charity Act is amended by
5changing Sections 2, 4, and 6 as follows:
 
6    (225 ILCS 460/2)  (from Ch. 23, par. 5102)
7    Sec. 2. Registration; rules; penalties.
8    (a) Every charitable organization, except as otherwise
9provided in Section 3 of this Act, which solicits or intends to
10solicit contributions from persons in this State or which is
11located in this State, by any means whatsoever shall, prior to
12any solicitation, file with the Attorney General upon forms
13prescribed by him, a registration statement, accompanied by a
14registration fee of $15, which statement shall include the
15following certified information:
16        1. The name of the organization and the name or names
17    under which it intends to solicit contributions.
18        2. The names and addresses of the officers, directors,
19    trustees, and chief executive officer of the organization.
20        3. The addresses of the organization and the addresses
21    of any offices in this State. If the organization does not
22    maintain a principal office, the name and address of the
23    person having custody of its financial records.

 

 

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1        4. Where and when the organization was legally
2    established, the form of its organization and its tax
3    exempt status.
4        5. The purpose for which the organization is organized
5    and the purpose or purposes for which the contributions to
6    be solicited will be used.
7        6. The date on which the fiscal year of the
8    organization ends.
9        7. Whether the organization is authorized by any other
10    governmental authority to solicit contributions and
11    whether it is or has ever been enjoined by any court from
12    soliciting contributions.
13        8. The names and addresses of any professional fund
14    raisers who are acting or have agreed to act on behalf of
15    the organization.
16        9. Methods by which solicitation will be made.
17        10. Copies of contracts between charitable
18    organizations and professional fund raisers relating to
19    financial compensation or profit to be derived by the
20    professional fund raisers. Where any such contract is
21    executed after filing of registration statement, a copy
22    thereof shall be filed within 10 days of the date of
23    execution.
24        11. Board, group, or individual having final
25    discretion as to the distribution and use of contributions
26    received.

 

 

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1    (b) The registration statement shall be signed by the
2president or other authorized officer and the chief fiscal
3officer of the organization.
4    (c) Such registration shall remain in effect unless it is
5either cancelled as provided in this Act or withdrawn by the
6organization.
7    (d) Every registered organization shall notify the
8Attorney General within 10 days of any change in the
9information required to be furnished by such organization under
10paragraphs 1 through 11 of subdivision (a) of this Section.
11    (e) In no event shall a registration of a charitable
12organization continue, or be continued, in effect after the
13date such organization should have filed, but failed to file,
14an annual report in accordance with the requirements of Section
154 of this Act, and such organization shall not be eligible to
16file a new registration until it shall have filed the required
17annual report with the Attorney General. If such report is
18subsequently filed and accepted by the Attorney General such
19organization may file a new registration. If a person, trustee,
20or organization fails to timely register or maintain a
21registration of a trust or organization as required by this Act
22or if its registration is cancelled as provided in this Act,
23and if that trust or organization remains in existence and by
24law is required to be registered, in order to re-register or
25file a late registration a current registration statement must
26be filed accompanied by financial reports in the form required

 

 

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1herein for all past years. In all instances where
2re-registration and late registration are allowed, the new
3registration materials must be filed, accompanied by a penalty
4registration fee of $25 $200.
5    (f) Subject to reasonable rules and regulations adopted by
6the Attorney General, the register, registration statements,
7annual reports, financial statements, professional fund
8raisers' contracts, bonds, applications for registration and
9re-registration, and other documents required to be filed with
10the Attorney General shall be open to public inspection.
11    Every person subject to this Act shall maintain accurate
12and detailed books and records at the principal office of the
13organization to provide the information required herein. All
14such books and records shall be open to inspection at all
15reasonable times by the Attorney General or his duly authorized
16representative.
17    (g) Where any local, county or area division of a
18charitable organization is supervised and controlled by a
19superior or parent organization, incorporated, qualified to do
20business, or doing business within this State, such local,
21county or area division shall not be required to register under
22this Section if the superior or parent organization files a
23registration statement on behalf of the local, county or area
24division in addition to or as part of its own registration
25statement. Where a registration statement has been filed by a
26superior or parent organization as provided in Section 2(g) of

 

 

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1this Act, it shall file the annual report required under
2Section 4 of this Act on behalf of the local, county or area
3division in addition to or as part of its own report, but the
4accounting information required under Section 4 of this Act
5shall be set forth separately and not in consolidated form with
6respect to every local, county or area division which raises or
7expends more than $4,000.
8    (h) The Attorney General may make rules of procedure and
9regulations necessary for the administration of this Act.
10Copies of all such rules of procedure and regulations and of
11all changes therein, duly certified by the Attorney General,
12shall be filed in the office of the Secretary of State.
13    (i) If a person, organization, or trustee fails to register
14or if registration of a trust or organization is cancelled as
15provided in this Act, the person, organization or trustee is
16subject to injunction, to removal, to account, and to
17appropriate other relief before the circuit court exercising
18chancery jurisdiction. In addition to any other relief granted
19under this Act, the court may impose a civil penalty of not
20less than $500 nor more than $1,000 against the organization or
21trust estate that failed to register or failed to maintain a
22registration required under this Act. The collected penalty
23funds shall be used for charitable trust enforcement and for
24providing charitable trust information to the public.
25(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
 

 

 

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1    (225 ILCS 460/4)  (from Ch. 23, par. 5104)
2    Sec. 4. (a) Every charitable organization registered
3pursuant to Section 2 of this Act which shall receive in any 12
4month period ending upon its established fiscal or calendar
5year contributions in excess of $300,000 and every charitable
6organization whose fund raising functions are not carried on
7solely by staff employees or persons who are unpaid for such
8services, if the organization shall receive in any 12 month
9period ending upon its established fiscal or calendar year
10contributions in excess of $25,000, shall file a written report
11with the Attorney General upon forms prescribed by him, on or
12before June 30 of each year if its books are kept on a calendar
13basis, or within 6 months after the close of its fiscal year if
14its books are kept on a fiscal year basis, which written report
15shall include a financial statement covering the immediately
16preceding 12 month period of operation. Such financial
17statement shall include a balance sheet and statement of income
18and expense, and shall be consistent with forms furnished by
19the Attorney General clearly setting forth the following: gross
20receipts and gross income from all sources, broken down into
21total receipts and income from each separate solicitation
22project or source; cost of administration; cost of
23solicitation; cost of programs designed to inform or educate
24the public; funds or properties transferred out of this State,
25with explanation as to recipient and purpose; cost of
26fundraising; compensation paid to trustees; and total net

 

 

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1amount disbursed or dedicated for each major purpose,
2charitable or otherwise. Such report shall also include a
3statement of any changes in the information required to be
4contained in the registration form filed on behalf of such
5organization. The report shall be signed by the president or
6other authorized officer and the chief fiscal officer of the
7organization who shall certify that the statements therein are
8true and correct to the best of their knowledge, and shall be
9accompanied by an opinion signed by an independent certified
10public accountant that the financial statement therein fairly
11represents the financial operations of the organization in
12sufficient detail to permit public evaluation of its
13operations. Said opinion may be relied upon by the Attorney
14General.
15    (b) Every organization registered pursuant to Section 2 of
16this Act which shall receive in any 12 month period ending upon
17its established fiscal or calendar year of any year
18contributions:
19        (1) in excess of $15,000, but not in excess of $25,000,
20    during a fiscal year shall file only a simplified summary
21    financial statement disclosing only the gross receipts,
22    total disbursements, and assets on hand at the end of the
23    year on forms prescribed by the Attorney General; or
24        (2) in excess of $25,000, but not in excess of
25    $300,000, if it is not required to submit a report under
26    subsection (a) of this Section, shall file a written report

 

 

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1    with the Attorney General upon forms prescribed by him, on
2    or before June 30 of each year if its books are kept on a
3    calendar basis, or within 6 months after the close of its
4    fiscal year if its books are kept on a fiscal year basis,
5    which shall include a financial statement covering the
6    immediately preceding 12-month period of operation limited
7    to a statement of such organization's gross receipts from
8    contributions, the gross amount expended for charitable
9    educational programs, other charitable programs,
10    management expense, and fund raising expenses including a
11    separate statement of the cost of any goods, services or
12    admissions supplied as part of its solicitations, and the
13    disposition of the net proceeds from contributions,
14    including compensation paid to trustees, consistent with
15    forms furnished by the Attorney General. Such report shall
16    also include a statement of any changes in the information
17    required to be contained in the registration form filed on
18    behalf of such organization. The report shall be signed by
19    the president or other authorized officer and the chief
20    fiscal officer of the organization who shall certify that
21    the statements therein are true and correct to the best of
22    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.
14    (d) As an alternative means of satisfying the duties and
15obligations otherwise imposed by this Section, any veterans
16organization chartered or incorporated under federal law and
17any veterans organization which is affiliated with, and
18recognized in the bylaws of, a congressionally chartered or
19incorporated organization may, at its option, annually file
20with the Attorney General the following documents:
21        (1) A copy of its Form 990, as filed with the Internal
22    Revenue Service.
23        (2) Copies of any reports required to be filed by the
24    affiliate with the congressionally chartered or
25    incorporated veterans organization, as well as copies of
26    any reports filed by the congressionally chartered or

 

 

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

 

 

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

 

 

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1Notice of such cancellation shall be mailed to the registrant
2at least 15 days before the effective date thereof.
3    (g) The Attorney General in his discretion may, pursuant to
4rule, accept executed copies of federal Internal Revenue
5returns and reports as a portion of the foregoing annual
6reporting in the interest of minimizing paperwork, except there
7shall be no substitute for the independent certified public
8accountant audit opinion required by this Act.
9    (h) The Attorney General after canceling the registration
10of any trust or organization which fails to comply with this
11Section within the time therein prescribed may by court
12proceedings, in addition to all other relief, seek to collect
13the assets and distribute such under court supervision to other
14charitable purposes.
15    (i) Every trustee, person, and organization required to
16file an annual report shall pay a filing fee of $15 with each
17annual financial report filed pursuant to this Section. If a
18proper and complete annual report is not timely filed, a late
19filing fee of an additional $50 $100 is imposed and shall be
20paid as a condition of filing a late report. Reports submitted
21without the proper fee shall not be accepted for filing.
22Payment of the late filing fee and acceptance by the Attorney
23General shall both be conditions of filing a late report. All
24late filing fees shall be used to provide charitable trust
25enforcement and dissemination of charitable trust information
26to the public and shall be maintained in a separate fund for

 

 

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1such purpose known as the Illinois Charity Bureau Fund.
2    (j) There is created hereby a separate special fund in the
3State Treasury to be known as the Illinois Charity Bureau Fund.
4That Fund shall be under the control of the Attorney General,
5and the funds, fees, and penalties deposited therein shall be
6used by the Attorney General to enforce the provisions of this
7Act and to gather and disseminate information about charitable
8trustees and organizations to the public.
9(Source: P.A. 96-488, eff. 1-1-10.)