Full Text of SB0172 102nd General Assembly
SB0172 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB0172 Introduced 2/9/2021, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED: |
| 225 ILCS 460/4 | from Ch. 23, par. 5104 |
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Amends the Solicitation for Charity Act. Provides that every charitable organization registered under the Act which shall receive in any 12-month period contributions in excess of $750,000 (rather than $300,000), shall file a written report with the Attorney General, which shall include a financial statement containing information provided for in the Act. Makes a conforming change.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Solicitation for Charity Act is amended by | 5 | | changing Section 4 as follows:
| 6 | | (225 ILCS 460/4) (from Ch. 23, par. 5104)
| 7 | | Sec. 4.
(a) Every charitable organization registered | 8 | | pursuant to Section 2
of this Act which shall receive in any | 9 | | 12-month period ending upon its
established fiscal or calendar | 10 | | year contributions in excess of $750,000 $300,000
and every | 11 | | charitable organization whose fund raising functions are not
| 12 | | carried on solely by staff employees or persons who are unpaid | 13 | | for such
services, if the organization shall receive in any | 14 | | 12-month period ending
upon its established fiscal or calendar | 15 | | year contributions in excess of
$25,000, shall file a
written | 16 | | report with the Attorney General upon forms
prescribed by him, | 17 | | on or before June 30 of each year if its books are kept
on a | 18 | | calendar basis, or within 6 months after the close of its | 19 | | fiscal year
if its books are kept on a fiscal year basis, which | 20 | | written report shall
include a
financial statement covering | 21 | | the immediately preceding 12-month period of
operation. Such | 22 | | financial statement shall include a balance sheet and
| 23 | | statement of income and expense, and shall be consistent with |
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| 1 | | forms
furnished by the Attorney General clearly setting forth | 2 | | the following:
gross receipts and gross income from all | 3 | | sources, broken down into total
receipts and income from each | 4 | | separate solicitation
project or source; cost of | 5 | | administration; cost of solicitation; cost of
programs | 6 | | designed to inform or educate the public; funds or properties
| 7 | | transferred out of this State, with explanation as to | 8 | | recipient and
purpose; cost of fundraising; compensation paid | 9 | | to trustees; and total net
amount disbursed or dedicated for | 10 | | each major purpose,
charitable or otherwise. Such report shall | 11 | | also include a statement of any
changes in the information | 12 | | required to be contained in the registration
form filed on | 13 | | behalf of such organization. The report shall be signed by
the | 14 | | president or other authorized officer and the chief fiscal | 15 | | officer of
the organization who shall certify that the | 16 | | statements therein are true
and correct to the best of their | 17 | | knowledge, and shall be accompanied by
an opinion signed by an | 18 | | independent certified public accountant that the
financial | 19 | | statement therein fairly represents the financial operations | 20 | | of
the organization in sufficient detail to permit public | 21 | | evaluation of its
operations. Said opinion may be relied upon | 22 | | by the Attorney General.
| 23 | | (b) Every organization registered pursuant to Section 2 of | 24 | | this Act
which shall receive in any 12-month period ending | 25 | | upon its established
fiscal or calendar year of any year
| 26 | | contributions:
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| 1 | | (1) in excess of $15,000, but not in excess of | 2 | | $25,000, during a
fiscal
year shall file only a simplified | 3 | | summary financial statement disclosing only
the gross | 4 | | receipts, total disbursements, and assets on hand at the | 5 | | end of the
year on forms prescribed by the Attorney | 6 | | General; or
| 7 | | (2) in excess of $25,000, but not in excess of | 8 | | $750,000 $300,000 , if it is not
required to submit a | 9 | | report under
subsection (a) of this Section, shall
file a | 10 | | written report with the Attorney General upon forms | 11 | | prescribed by
him, on or before June 30 of each year if its | 12 | | books are kept on a calendar
basis, or within 6 months | 13 | | after the close of its fiscal year if its books
are kept on | 14 | | a fiscal year basis, which shall include a financial | 15 | | statement
covering the immediately preceding 12-month | 16 | | period of operation limited to
a statement of such | 17 | | organization's gross receipts from contributions, the
| 18 | | gross amount expended for charitable educational programs, | 19 | | other charitable
programs, management expense, and fund
| 20 | | raising expenses including a separate statement of the | 21 | | cost of any goods,
services or admissions supplied as part | 22 | | of its solicitations, and the
disposition of the net | 23 | | proceeds from contributions, including compensation
paid | 24 | | to trustees, consistent with forms furnished by the | 25 | | Attorney General.
Such report shall also
include a | 26 | | statement of any changes in the information required to be
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| 1 | | contained in the registration form filed on behalf of such | 2 | | organization.
The report shall be signed by the president | 3 | | or other authorized officer and
the chief fiscal officer | 4 | | of the organization who shall certify that the
statements | 5 | | therein are true and correct to the best of their | 6 | | knowledge.
| 7 | | (c) For any fiscal or calendar year of any organization | 8 | | registered
pursuant to Section 2 of this Act in which such | 9 | | organization would have
been exempt from registration pursuant | 10 | | to Section 3 of this Act if it had
not been so registered, or | 11 | | in which it did not solicit or receive
contributions, such | 12 | | organization shall file, on or before June 30 of each
year if | 13 | | its books are kept on a calendar basis, or within 6 months | 14 | | after
the close of its fiscal year if its books are kept on a | 15 | | fiscal year basis,
instead of the reports required by | 16 | | subdivisions (a) or (b) of this Section,
a statement certified | 17 | | under penalty of perjury by its president and chief fiscal
| 18 | | officer stating the exemption and the facts upon which it is | 19 | | based or that
such organization did not solicit or receive | 20 | | contributions in such fiscal
year. The statement shall also | 21 | | include a statement of any
changes in the information required | 22 | | to be contained in the registration form
filed on behalf of | 23 | | such organization.
| 24 | | (d) As an alternative means of satisfying the duties and | 25 | | obligations
otherwise imposed by this Section, any veterans | 26 | | organization
chartered or incorporated under federal law and |
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| 1 | | any veterans organization
which is affiliated with, and | 2 | | recognized in the bylaws of, a
congressionally chartered or | 3 | | incorporated organization may, at its option,
annually file | 4 | | with the Attorney General the following documents:
| 5 | | (1) A copy of its Form 990, as filed with the Internal | 6 | | Revenue Service.
| 7 | | (2) Copies of any reports required to be filed by the | 8 | | affiliate with
the congressionally chartered or | 9 | | incorporated veterans organization, as well
as copies of | 10 | | any reports filed by the congressionally chartered or
| 11 | | incorporated veterans organization with the government of | 12 | | the United States
pursuant to federal law.
| 13 | | (3) Copies of all contracts entered into by the | 14 | | congressionally
chartered or incorporated veterans | 15 | | organization or its affiliate for
purposes of raising | 16 | | funds in this State, such copies to be filed with the
| 17 | | Attorney General no more than 30 days after execution of | 18 | | the contracts.
| 19 | | (e) As an alternative means of satisfying all of the | 20 | | duties and
obligations otherwise imposed by this Section, any | 21 | | person, pursuant
to a
contract with a charitable organization, | 22 | | a veterans organization or an
affiliate described or referred | 23 | | to in subsection (d), who receives,
collects, holds or | 24 | | transports as the agent of the organization or affiliate
for | 25 | | purposes of resale any used or second hand personal property, | 26 | | including
but not limited to household goods, furniture or |
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| 1 | | clothing donated to the
organization or affiliate may, at its | 2 | | option, annually file with the
Attorney General the following | 3 | | documents, accompanied by an annual filing fee
of $15:
| 4 | | (1) A notarized report including the number of | 5 | | donations of personal
property it has received on behalf | 6 | | of the charitable organization, veterans
organization or | 7 | | affiliate during the preceding year. For purposes of this
| 8 | | report, the number of donations of personal property shall | 9 | | refer to the
number of stops or pickups made regardless of | 10 | | the number of items received
at each stop or pickup. The | 11 | | report may cover the person's fiscal year, in
which case | 12 | | it shall be filed with the Attorney General no later than | 13 | | 90
days after the close of that fiscal year.
| 14 | | (2) All contracts with the charitable organization, | 15 | | veterans
organization or affiliate under which the person | 16 | | has acted as an agent for
the purposes listed above.
| 17 | | (3) All contracts by which the person agreed to pay | 18 | | the charitable
organization, veterans organization or | 19 | | affiliate a fixed amount for, or a
fixed percentage of the | 20 | | value of, each donation of used or second hand
personal | 21 | | property. Copies of all such contracts shall be filed no | 22 | | later
than 30 days after they are executed.
| 23 | | (f) The Attorney General may seek appropriate equitable | 24 | | relief from a
court or, in his discretion, cancel the | 25 | | registration
of any organization which fails to comply with | 26 | | subdivision (a), (b), or (c) of
this Section within the time |
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| 1 | | therein prescribed, or fails to furnish such
additional | 2 | | information as is requested by the Attorney General within the
| 3 | | required time; except that the time may be extended by the | 4 | | Attorney General
for a period not to exceed 60 days upon a | 5 | | timely written
request and for
good cause stated. Unless | 6 | | otherwise stated herein, the Attorney General
shall, by
rule, | 7 | | set forth the standards used to determine whether a | 8 | | registration
shall be cancelled as authorized by this | 9 | | subsection. Such standards shall
be stated as precisely and | 10 | | clearly as practicable, to inform fully those
persons | 11 | | affected. Notice of such cancellation shall be mailed to the
| 12 | | registrant at least 15 days before the effective date thereof.
| 13 | | (g) The Attorney General in his discretion may, pursuant | 14 | | to rule,
accept executed copies of federal Internal Revenue | 15 | | returns and reports as a
portion of the foregoing
annual | 16 | | reporting in the interest of minimizing paperwork, except | 17 | | there
shall be no substitute for the independent certified | 18 | | public accountant
audit opinion required by this Act.
| 19 | | (h) The Attorney General after canceling the registration | 20 | | of any trust
or organization which fails to comply with
this
| 21 | | Section within the time therein prescribed may by court | 22 | | proceedings, in
addition to all other relief, seek to
collect | 23 | | the assets and distribute such under court supervision to | 24 | | other
charitable purposes.
| 25 | | (i) Every trustee, person, and organization required to | 26 | | file an annual
report shall pay a filing fee of $15 with each |
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| 1 | | annual financial report filed
pursuant to this Section. If a | 2 | | proper and complete annual report is not timely
filed, a late | 3 | | filing fee of an additional $100 is imposed and shall be paid
| 4 | | as a condition of filing a late report. Reports submitted | 5 | | without the proper
fee shall not be accepted for filing. | 6 | | Payment of the late filing fee and
acceptance by the Attorney | 7 | | General shall both be conditions of filing a late
report. All | 8 | | late filing fees shall be used to provide charitable trust
| 9 | | enforcement and dissemination of charitable trust information | 10 | | to the public and
shall be maintained in a separate fund for | 11 | | such purpose known as the Illinois
Charity Bureau Fund.
| 12 | | (j) There is created hereby a separate special fund in the | 13 | | State Treasury to
be known as the Illinois Charity Bureau | 14 | | Fund. That Fund shall be under the
control of the Attorney | 15 | | General, and the funds, fees, and penalties deposited
therein | 16 | | shall be used by the Attorney General to enforce the | 17 | | provisions of this
Act and to gather and disseminate | 18 | | information about charitable trustees and
organizations to the | 19 | | public.
| 20 | | (Source: P.A. 100-201, eff. 8-18-17.)
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