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90_HB1211sam001
LRB9004043EGfgam02
1 AMENDMENT TO HOUSE BILL 1211
2 AMENDMENT NO. . Amend House Bill 1211 by replacing
3 the title with the following:
4 "AN ACT relating to charitable organizations and
5 activities, amending named Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Solicitation for Charity Act is amended
9 by changing Sections 2, 3, 4, 5, 6, 7, 17, and 21 and adding
10 Sections 22 and 23 as follows:
11 (225 ILCS 460/2) (from Ch. 23, par. 5102)
12 Sec. 2. (a) Every charitable organization, except as
13 otherwise provided in Section 3 of this Act, which solicits
14 or intends to solicit contributions from persons in this
15 State or which is located in this State, by any means
16 whatsoever shall, prior to any solicitation, file with the
17 Attorney General upon forms prescribed by him, a registration
18 statement, accompanied by a registration fee of $15, which
19 statement shall include the following certified information:
20 1. The name of the organization and the name or
21 names under which it intends to solicit contributions.
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1 2. The names and addresses of the officers,
2 directors, trustees, and chief executive officer of the
3 organization.
4 3. The addresses of the organization and the
5 addresses of any offices in this State. If the
6 organization does not maintain a principal office, the
7 name and address of the person having custody of its
8 financial records.
9 4. Where and when the organization was legally
10 established, the form of its organization and its tax
11 exempt status.
12 5. The purpose for which the organization is
13 organized and the purpose or purposes for which the
14 contributions to be solicited will be used.
15 6. The date on which the fiscal year of the
16 organization ends.
17 7. Whether the organization is authorized by any
18 other governmental authority to solicit contributions and
19 whether it is or has ever been enjoined by any court from
20 soliciting contributions.
21 8. The names and addresses of any professional fund
22 raisers who are acting or have agreed to act on behalf of
23 the organization.
24 9. Methods by which solicitation will be made.
25 10. Copies of contracts between charitable
26 organizations and professional fund raisers relating to
27 financial compensation or profit to be derived by the
28 professional fund raisers. Where any such contract is
29 executed after filing of registration statement, a copy
30 thereof shall be filed within 10 days of the date of
31 execution.
32 11. Board, group, or individual having final
33 discretion as to the distribution and use of
34 contributions received.
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1 (b) The registration statement shall be signed by the
2 president or other authorized officer and the chief fiscal
3 officer of the organization.
4 (c) Such registration shall remain in effect unless it
5 is either cancelled as provided in this Act or withdrawn by
6 the organization.
7 (d) Every registered organization shall notify the
8 Attorney General within 10 days of any change in the
9 information required to be furnished by such organization
10 under paragraphs 1 through 11 of subdivision (a) of this
11 Section.
12 (e) In no event shall a registration of a charitable
13 organization continue, or be continued, in effect after the
14 date such organization should have filed, but failed to file,
15 an annual report in accordance with the requirements of
16 Section 4 of this Act, and such organization shall not be
17 eligible to file a new registration until it shall have filed
18 the required annual report with the Attorney General. If such
19 report is subsequently filed and accepted by the Attorney
20 General such organization may file a new registration. If a
21 person, trustee, or organization fails to timely register or
22 maintain a registration of a trust or organization as
23 required by this Act or if its registration is cancelled as
24 provided in this Act, and if that trust or organization
25 remains in existence and by law is required to be registered,
26 in order to re-register or file a late registration a current
27 registration statement must be filed accompanied by financial
28 reports in the form required herein for all past years. In
29 all instances where re-registration and late registration are
30 allowed, the new registration materials must be filed,
31 accompanied by a penalty registration fee of $200.
32 (f) Subject to reasonable rules and regulations adopted
33 by the Attorney General, the register, registration
34 statements, annual reports, financial statements,
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1 professional fund raisers' contracts, bonds, applications for
2 registration and re-registration, and other documents
3 required to be filed with the Attorney General shall be open
4 to public inspection.
5 Every person subject to this Act shall maintain accurate
6 and detailed books and records at the principal office of the
7 organization to provide the information required herein. All
8 such books and records shall be open to inspection at all
9 reasonable times by the Attorney General or his duly
10 authorized representative.
11 (g) Where any local, county or area division of a
12 charitable organization is supervised and controlled by a
13 superior or parent organization, incorporated, qualified to
14 do business, or doing business within this State, such local,
15 county or area division shall not be required to register
16 under this Section if the superior or parent organization
17 files a registration statement on behalf of the local, county
18 or area division in addition to or as part of its own
19 registration statement. Where a registration statement has
20 been filed by a superior or parent organization as provided
21 in Section 2(g) of this Act, it shall file the annual report
22 required under Section 4 of this Act on behalf of the local,
23 county or area division in addition to or as part of its own
24 report, but the accounting information required under Section
25 4 of this Act shall be set forth separately and not in
26 consolidated form with respect to every local, county or area
27 division which raises or expends more than $4,000.
28 (h) The Attorney General may make rules of procedure and
29 regulations necessary for the administration of this Act.
30 Copies of all such rules of procedure and regulations and of
31 all changes therein, duly certified by the Attorney General,
32 shall be filed in the office of the Secretary of State.
33 (i) If a person, organization, or trustee fails to
34 register or if maintain registration of a trust or
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1 organization is cancelled as provided in this Act Section,
2 the person, organization or trustee is subject to injunction,
3 to removal, to account, and to appropriate other relief
4 before the circuit court exercising chancery jurisdiction. In
5 addition to any other relief granted under this Act, the
6 court shall impose a civil penalty of not less than $500 nor
7 more than $1,000 against each and every trustee,
8 organization, and person who fails to register or who fails
9 to maintain a registration required under this Act. The
10 collected penalty funds shall be used for charitable trust
11 enforcement and for providing charitable trust information to
12 the public.
13 (Source: P.A. 87-755.)
14 (225 ILCS 460/3) (from Ch. 23, par. 5103)
15 Sec. 3. (a) Upon initial filing of a registration
16 statement pursuant to Section 2 of this Act and notification
17 by the Attorney General of his determination that the
18 organizational purposes or circumstances specified in this
19 paragraph for exemption are actual and genuine, the following
20 entities shall be exempt from all the report filing
21 provisions and requirements of this Act, except for the
22 requirements set forth in Section 2 of this Act:
23 1. A corporation sole or other religious
24 corporation, trust or organization incorporated or
25 established for religious purposes, nor to any agency or
26 organization incorporated or established for charitable,
27 hospital or educational purposes and engaged in
28 effectuating one or more of such purposes, that is
29 affiliated with, operated by, or supervised or controlled
30 by a corporation sole or other religious corporation,
31 trust or organization incorporated or established for
32 religious purposes, nor to other religious agencies or
33 organizations which serve religion by the preservation of
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1 religious rights and freedom from persecution or
2 prejudice or by fostering religion, including the moral
3 and ethical aspects of a particular religious faith.
4 2. Any charitable organization which does not
5 intend to solicit and receive and does not actually
6 receive contributions in excess of $15,000 $10,000 during
7 any 12 month period ending December 31 of any year,
8 provided all of its fund raising functions are carried on
9 by persons who are unpaid for such services. However, if
10 the gross contributions received by such charitable
11 organization during any 12 month period ending December
12 31 of any year shall be in excess of $15,000 $10,000, it
13 shall file reports as required under this Act and the
14 provisions of this Act shall apply.
15 (b) The following persons shall not be required to
16 register with the Attorney General:
17 1. The University of Illinois, Southern Illinois
18 University, Eastern Illinois University, Illinois State
19 Normal University, Northern Illinois University, Western
20 Illinois University, all educational institutions that
21 are recognized by the State Board of Education or that
22 are accredited by a regional accrediting association or
23 by an organization affiliated with the National
24 Commission on Accrediting, any foundation having an
25 established identity with any of the aforementioned
26 educational institutions, any other educational
27 institution confining its solicitation of contributions
28 to its student body, alumni, faculty and trustees, and
29 their families, or a library established under the laws
30 of this State, provided that the annual financial report
31 of such institution or library shall be filed with the
32 State Board of Education, Governor, Illinois State
33 Library, County Library Board or County Board, as
34 provided by law.
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1 2. Fraternal, patriotic, social, educational,
2 alumni organizations and historical societies when
3 solicitation of contributions is confined to their
4 membership. This exemption shall be extended to any
5 subsidiary of a parent or superior organization exempted
6 by Sub-paragraph 2 of Paragraph (b) of Section 3 of this
7 Act where such solicitation is confined to the membership
8 of the subsidiary, parent or superior organization.
9 3. Persons requesting any contributions for the
10 relief or benefit of any individual, specified by name at
11 the time of the solicitation, if the contributions
12 collected are turned over to the named beneficiary, first
13 deducting reasonable expenses for costs of banquets, or
14 social gatherings, if any, provided all fund raising
15 functions are carried on by persons who are unpaid,
16 directly or indirectly, for such services.
17 4. Any bona fide union, bona fide political
18 organization or bona fide political action committee,
19 which does not solicit funds for a charitable purpose.
20 5. Any charitable organization receiving an
21 allocation from an incorporated community chest or united
22 fund, provided such chest or fund is complying with the
23 provisions of this Act relating to registration and
24 filing of annual reports with the Attorney General, and
25 provided such organization does not actually receive, in
26 addition to such allocation, contributions in excess of
27 $4,000 during any 12 month period ending June 30th of any
28 year, and provided further that all the fund raising
29 functions of such organization are carried on by persons
30 who are unpaid for such services. However, if the gross
31 contributions other than such allocation received by such
32 charitable organization during any 12 month period ending
33 June 30th of any year shall be in excess of $4,000, it
34 shall within 30 days after the date it shall have
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1 received such contributions in excess of $4,000 register
2 with the Attorney General as required by Section 2.
3 6. A bona fide organization of volunteer firemen,
4 or a bona fide auxiliary or affiliate of such
5 organization, provided all its fund raising activities
6 are carried on by members of such an organization or an
7 affiliate thereof and such members receive no
8 compensation, directly or indirectly, therefor.
9 7. Any charitable organization operating a nursery
10 for infants awaiting adoption providing that all its fund
11 raising activities are carried on by members of such an
12 organization or an affiliate thereof and such members
13 receive no compensation, directly or indirectly therefor.
14 8. Any corporation established by the Federal
15 Congress that is required by federal law to submit annual
16 reports of its activities to Congress containing itemized
17 accounts of all receipts and expenditures after being
18 duly audited.
19 9. Any boys' club which is affiliated with the
20 Boys' Club of America, a corporation chartered by
21 Congress; provided, however, that such an affiliate
22 properly files the reports required by the Boys' Club of
23 America and that the Boys' Club of America files with the
24 Government of the United States the reports required by
25 its federal charter.
26 10. Any veterans organization chartered or
27 incorporated under federal law and any veterans
28 organization which is affiliated with, and recognized in
29 the bylaws of, a congressionally chartered or
30 incorporated veterans organization; provided, however,
31 that the affiliate properly files the reports required by
32 the congressionally chartered or incorporated veterans
33 organization, that the congressionally chartered or
34 incorporated veterans organization files with the
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1 government of the United States the reports required by
2 its federal charter, and that copies of such federally
3 required reports are filed with the Attorney General.
4 11. Any parent-teacher organization that is
5 controlled by teachers and parents of children attending
6 a particular public or private school for which the
7 organization is named and solicits contributions for the
8 benefit of that particular school; provided that:
9 (i) the school is specified by name at the
10 time the solicitation is made;
11 (ii) all of the contributions are turned over
12 to the school, after first deducting reasonable
13 expenses for fundraising and parent-teacher
14 activities;
15 (iii) all fundraising functions are carried on
16 by persons who are not paid, either directly or
17 indirectly, for their fundraising services;
18 (iv) the total contributions, less reasonable
19 fundraising expenses, do not exceed $50,000 in any
20 calendar year;
21 (v) the organization provides the school at
22 least annually with a complete accounting of all
23 contributions received; and
24 (v) the governing board of the school annually
25 certifies to the Attorney General that the
26 parent-teacher organization has provided the school
27 with a full accounting and that the organization has
28 provided benefits and contributions to the school.
29 (Source: P.A. 87-755.)
30 (225 ILCS 460/4) (from Ch. 23, par. 5104)
31 Sec. 4. (a) Every charitable organization registered
32 pursuant to Section 2 of this Act which shall receive in any
33 12 month period ending upon its established fiscal or
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1 calendar year contributions in excess of $150,000 $100,000,
2 and every charitable organization whose fund raising
3 functions are not carried on solely by staff employees or
4 persons who are unpaid for such services, if the organization
5 shall receive in any 12 month period ending upon its
6 established fiscal or calendar year contributions in excess
7 of $25,000, shall file a written report with the Attorney
8 General upon forms prescribed by him, on or before June 30 of
9 each year if its books are kept on a calendar basis, or
10 within 6 months after the close of its fiscal year if its
11 books are kept on a fiscal year basis, which written report
12 shall include a financial statement covering the immediately
13 preceding 12 month period of operation. Such financial
14 statement shall include a balance sheet and statement of
15 income and expense, and shall be consistent with forms
16 furnished by the Attorney General clearly setting forth the
17 following: gross receipts and gross income from all sources,
18 broken down into total receipts and income from each separate
19 solicitation project or source; cost of administration; cost
20 of solicitation; cost of programs designed to inform or
21 educate the public; funds or properties transferred out of
22 this State, with explanation as to recipient and purpose;
23 cost of fundraising; compensation paid to trustees; and total
24 net amount disbursed or dedicated for each major purpose,
25 charitable or otherwise. Such report shall also include a
26 statement of any changes in the information required to be
27 contained in the registration form filed on behalf of such
28 organization. The report shall be signed by the president or
29 other authorized officer and the chief fiscal officer of the
30 organization who shall certify that the statements therein
31 are true and correct to the best of their knowledge, and
32 shall be accompanied by an opinion signed by an independent
33 certified public accountant that the financial statement
34 therein fairly represents the financial operations of the
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1 organization in sufficient detail to permit public evaluation
2 of its operations. Said opinion may be relied upon by the
3 Attorney General.
4 (b) Every organization registered pursuant to Section 2
5 of this Act which shall receive in any 12 month period ending
6 upon its established fiscal or calendar year of any year
7 contributions in excess of $15,000, but not in excess of
8 $150,000, if it is not required to submit a report under
9 subsection (a) of this Section, $100,000 and all of whose
10 fund raising functions are carried on by persons who are
11 unpaid for such services shall file a written report with the
12 Attorney General upon forms prescribed by him, on or before
13 June 30 of each year if its books are kept on a calendar
14 basis, or within 6 months after the close of its fiscal year
15 if its books are kept on a fiscal year basis, which shall
16 include a financial statement covering the immediately
17 preceding 12-month period of operation limited to a statement
18 of such organization's gross receipts from contributions, the
19 gross amount expended for charitable educational programs,
20 other charitable programs, management expense, and fund
21 raising expenses including a separate statement of the cost
22 of any goods, services or admissions supplied as part of its
23 solicitations, and the disposition of the net proceeds from
24 contributions, including compensation paid to trustees,
25 consistent with forms furnished by the Attorney General.
26 Such report shall also include a statement of any changes in
27 the information required to be contained in the registration
28 form filed on behalf of such organization. The report shall
29 be signed by the president or other authorized officer and
30 the chief fiscal officer of the organization who shall
31 certify that the statements therein are true and correct to
32 the best of their knowledge.
33 (c) For any fiscal or calendar year of any organization
34 registered pursuant to Section 2 of this Act in which such
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1 organization would have been exempt from registration
2 pursuant to Section 3 of this Act if it had not been so
3 registered, or in which it did not solicit or receive
4 contributions, such organization shall file, on or before
5 June 30 of each year if its books are kept on a calendar
6 basis, or within 6 months after the close of its fiscal year
7 if its books are kept on a fiscal year basis, instead of the
8 reports required by subdivisions (a) or (b) of this Section,
9 a statement certified under penalty of perjury by report in
10 the form of an affidavit of its president and chief fiscal
11 officer stating the exemption and the facts upon which it is
12 based or that such organization did not solicit or receive
13 contributions in such fiscal year. The statement affidavit
14 shall also include a statement of any changes in the
15 information required to be contained in the registration form
16 filed on behalf of such organization.
17 (d) As an alternative means of satisfying the duties and
18 obligations otherwise imposed by this Section Act, any
19 veterans organization chartered or incorporated under federal
20 law and any veterans organization which is affiliated with,
21 and recognized in the bylaws of, a congressionally chartered
22 or incorporated organization may, at its option, annually
23 file with the Attorney General the following documents:
24 (1) A copy of its Form 990, as filed with the
25 Internal Revenue Service.
26 (2) Copies of any reports required to be filed by
27 the affiliate with the congressionally chartered or
28 incorporated veterans organization, as well as copies of
29 any reports filed by the congressionally chartered or
30 incorporated veterans organization with the government of
31 the United States pursuant to federal law.
32 (3) Copies of all contracts entered into by the
33 congressionally chartered or incorporated veterans
34 organization or its affiliate for purposes of raising
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1 funds in this State, such copies to be filed with the
2 Attorney General no more than 30 days after execution of
3 the contracts.
4 (e) As an alternative means of satisfying all of the
5 duties and obligations otherwise imposed by this Section Act,
6 any person, pursuant to a contract with a charitable
7 organization, a veterans organization or an affiliate
8 described or referred to in subsection (d), who receives,
9 collects, holds or transports as the agent of the
10 organization or affiliate for purposes of resale any used or
11 second hand personal property, including but not limited to
12 household goods, furniture or clothing donated to the
13 organization or affiliate may, at its option, annually file
14 with the Attorney General the following documents,
15 accompanied by an annual filing fee of $15:
16 (1) A notarized report including the number of
17 donations of personal property it has received on behalf
18 of the charitable organization, veterans organization or
19 affiliate during the proceeding year. For purposes of
20 this report, the number of donations of personal property
21 shall refer to the number of stops or pickups made
22 regardless of the number of items received at each stop
23 or pickup. The report may cover the person's fiscal
24 year, in which case it shall be filed with the Attorney
25 General no later than 90 days after the close of that
26 fiscal year.
27 (2) All contracts with the charitable organization,
28 veterans organization or affiliate under which the person
29 has acted as an agent for the purposes listed above.
30 (3) All contracts by which the person agreed to pay
31 the charitable organization, veterans organization or
32 affiliate a fixed amount for, or a fixed percentage of
33 the value of, each donation of used or second hand
34 personal property. Copies of all such contracts shall be
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1 filed no later than 30 days after they are executed.
2 (f) The Attorney General may seek appropriate equitable
3 relief from a court or, in his discretion, cancel the
4 registration of any organization which fails to comply with
5 subdivision (a), (b) or (c) of this Section within the time
6 therein prescribed, or fails to furnish such additional
7 information as is requested by the Attorney General within
8 the required time; except that the time may be extended by
9 the Attorney General for a period not to exceed 60 days 3
10 months upon a timely written request and for good cause
11 stated. Unless otherwise stated herein, the Attorney General
12 shall, by rule, set forth the standards used to determine
13 whether a registration shall be cancelled as authorized by
14 this subsection. Such standards shall be stated as precisely
15 and clearly as practicable, to inform fully those persons
16 affected. Notice of such cancellation shall be mailed to the
17 registrant at least 15 days before the effective date
18 thereof.
19 (g) The Attorney General in his discretion may, pursuant
20 to rule, accept executed copies of federal Internal Revenue
21 returns and reports as a portion of the foregoing annual
22 reporting in the interest of minimizing paperwork, except
23 there shall be no substitute for the independent certified
24 public accountant CPA audit opinion required by this Act.
25 (h) The Attorney General after canceling the
26 registration of any trust or organization which fails to
27 comply with subsections (a), (b) or (c) of this Section
28 within the time therein prescribed may by court proceedings,
29 in addition to all other relief, seek to collect the assets
30 and distribute such under court supervision to other
31 charitable purposes.
32 (i) Every trustee, person, and organization required to
33 file an annual report shall pay a filing fee of $15 with each
34 annual financial report filed pursuant to this Section. If a
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1 proper and complete annual report is not timely filed, a late
2 filing fee of an additional $100 is imposed and shall be paid
3 as a condition of filing a late report. Reports submitted
4 without the proper fee shall not be accepted for filing.
5 Payment of the late filing fee and acceptance by the Attorney
6 General shall both be conditions of filing a late report.
7 All late filing fees shall be used to provide charitable
8 trust enforcement and dissemination of charitable trust
9 information to the public and shall be maintained in a
10 separate fund for such purpose known as the Illinois Charity
11 Bureau Fund.
12 (j) There is created hereby a separate special fund in
13 the 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
19 the public.
20 (Source: P.A. 89-626, eff. 8-9-96.)
21 (225 ILCS 460/5) (from Ch. 23, par. 5105)
22 Sec. 5. Any charitable organization, trustee, person,
23 professional fund raiser or professional solicitor, which or
24 who solicits contributions in this State, but does not
25 maintain an office within the State or cannot be located
26 within the State shall be subject to service of process, as
27 follows:
28 (a) By service thereof on its registered agent within
29 the State, or if there be no such registered agent, then upon
30 the person who has been designated in the registration
31 statement as having custody of books and records within this
32 State; where service is effected upon the person so
33 designated in the registration statement a copy of the
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1 process shall, in addition, be mailed to the registrant's
2 last known address;
3 (b) When any corporate person has solicited
4 contributions in this State, but maintains no office within
5 the State, has no registered agent within the State, and no
6 designated person having custody of its books and records
7 within the State, or when a registered agent or person having
8 custody of its books and records within the State cannot be
9 found as shown by the return of the sheriff of the county in
10 which such registered agent or person having custody of books
11 and records has been represented by the charitable
12 organization or person as maintaining an office, service may
13 be made by delivering to and leaving with the Secretary of
14 State, or with any deputy or clerk in the corporation
15 department of his office, three copies thereof;
16 (c) Following service upon the Secretary of State the
17 provisions of law relating to service of process on foreign
18 corporations shall thereafter govern;
19 (d) Long arm service in accordance with law;
20 (e) The solicitation of any contribution within this
21 State by any charitable organization or any person shall be
22 deemed to be their agreement that any process against it or
23 him which is so served in accordance with the provisions of
24 this Section shall be of the same legal force and effect as
25 if served personally within this State and that the courts of
26 this State shall have personal jurisdiction over such
27 organizations, persons and trustees.
28 (f) Venue over persons required to be registered under
29 this Act shall be proper in any county where the Attorney
30 General accepts and maintains the list of registrations. In
31 furtherance of judicial economy, actions filed for violation
32 of this Act may name multiple trustees, trusts, and
33 organizations in a single or joint action where those joined
34 have each engaged in similar conduct in violation of this Act
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1 or where similar relief is sought against those defendants
2 for violation of this Act.
3 (Source: P.A. 87-755.)
4 (225 ILCS 460/6) (from Ch. 23, par. 5106)
5 Sec. 6. (a) No person shall act as a professional fund
6 raiser or allow a professional fund raiser entity he owns,
7 manages or controls to act for a charitable organization
8 required to register pursuant to Section 2 of this Act, or
9 for any organization as described in Section 3 of this Act
10 before he has registered himself or the entity with the
11 Attorney General or after the expiration or cancellation of
12 such registration or any renewal thereof. Applications for
13 registration and re-registration shall be in writing, under
14 oath, in the form prescribed by the Attorney General. A
15 registration fee of $100 shall be paid with each registration
16 and upon each re-registration. Registration and
17 re-registration can proceed only if all financial reports
18 have been filed in proper form and all fees have been paid in
19 full. If the applicant intends to or does take control or
20 possession of charitable funds, the applicant shall at the
21 time of making application, file with, and have approved by,
22 the Attorney General a bond in which the applicant shall be
23 the principal obligor, in the sum of $10,000, with one or
24 more corporate sureties licensed to do business in this State
25 whose liability in the aggregate will at least equal such
26 sum. The bond shall run to the Attorney General for the use
27 of the State and to any person who may have a cause of action
28 against the obligor of the bond for any malfeasance or
29 misfeasance in the conduct of such solicitation; provided,
30 that the aggregate limit of liability of the surety to the
31 State and to all such persons shall, in no event, exceed the
32 sum of such bond. Registration or re-registration when
33 effected shall be for a period of one year, or a part
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1 thereof, expiring on the 30th day of June, and may be renewed
2 upon written application, under oath, in the form prescribed
3 by the Attorney General and the filing of the bond for
4 additional one year periods. Every professional fund raiser
5 required to register pursuant to this Act shall file an
6 annual written report with the Attorney General containing
7 such information as he may require by rule. Certification
8 shall be required for only information within the
9 professional fund raiser's knowledge.
10 (b) Upon filing a complete registration statement, a
11 professional fund raiser shall be given a registration number
12 and shall be considered registered. If the materials
13 submitted are determined to be inaccurate or incomplete, the
14 Attorney General shall notify the professional fund raiser of
15 his findings and the defect and that within 30 days his
16 registration will be cancelled unless the defect is cured
17 within said time.
18 (c) Every professional fund raiser registered under this
19 Act who takes possession or control of charitable funds
20 directly, indirectly, or through an escrow shall submit a
21 full written accounting to the charitable organization of all
22 funds it or its agents collected on behalf of the charitable
23 organization during the 6 month period ended June 30 of each
24 year, and file a copy of the accounting with the Attorney
25 General. The accounting shall be in writing under oath and
26 be signed and made on forms as prescribed by the Attorney
27 General and shall be filed by the following September 30 of
28 each year; however, within the time prescribed, and for good
29 cause, the Attorney General may grant a 60 day extension of
30 the due date.
31 (d) Every professional fund raiser registered pursuant
32 to this Act shall also file calendar year written financial
33 reports with the Attorney General containing such information
34 as he may require, on forms prescribed by him, as well as
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1 separate financial reports for each separate fund raising
2 campaign conducted. The written report shall be filed under
3 oath on or before April 30 of the following calendar year and
4 be signed and verified under penalty of perjury within the
5 time prescribed. An annual report fee of $25 shall be paid to
6 the Attorney General with the filing of that report. If the
7 report is not timely filed, a late filing fee shall result
8 and must be paid prior to re-registration. The late filing
9 fee shall be calculated at $200 for each and every separate
10 fundraising campaign conducted during the report year. For
11 good cause, the Attorney General may grant a 30 day extension
12 of the due date, in which case a late filing fee shall not be
13 imposed until the expiration of the extension period. A copy
14 of the report shall also be given to the charitable
15 organization by the due date of filing. A professional fund
16 raiser shall only be required to verify information actually
17 available to the professional fund raiser, but in any event
18 an annual report must be timely filed.
19 (e) No person convicted of a felony may register as a
20 professional fund raiser, and no person convicted of a
21 misdemeanor involving fiscal wrongdoing, breach of fiduciary
22 duty or a violation of this Act may register as a
23 professional fund raiser for a period of 5 years from the
24 date of the conviction or the date of termination of the
25 sentence or probation, if any, whichever is later. This
26 subsection shall not apply to charitable organizations that
27 have as their primary purpose the rehabilitation of criminal
28 offenders, the reintegration of criminal offenders into
29 society, the improvement of the criminal justice system or
30 the improvement of conditions within penal institutions.
31 (f) A professional fund raiser may not cause or allow
32 independent contractors to act on its behalf in soliciting
33 charitable contributions other than registered professional
34 solicitors. A professional fund raiser must maintain the
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1 names, addresses and social security numbers of all of its
2 professional solicitors for a period of at least 2 years.
3 (g) Any person who knowingly violates the provisions of
4 subsections (a), (e) and (f) of this Section is guilty of a
5 Class 4 felony. Any person who fails after being given
6 notice of delinquency to file written financial reports
7 required by subsections (c) and (d) of this Section which is
8 more than 2 months past its due date is guilty of a Class A
9 misdemeanor.
10 (h) Any person who violates any of the provisions of
11 this Section shall be subject to civil penalties of up to
12 $5,000 for each violation and shall not be entitled to keep
13 or receive fees, salaries, commissions or any compensation as
14 a result or on account of the solicitations or fund raising
15 campaigns, and at the request of the Attorney General or the
16 charitable organization, a court may order that such be
17 forfeited and paid toward and used for a charitable purpose
18 as the court in its discretion determines is appropriate or
19 placed in the Illinois Charity Bureau Fund.
20 (Source: P.A. 87-755.)
21 (225 ILCS 460/7) (from Ch. 23, par. 5107)
22 Sec. 7. (a) All contracts entered into by a
23 professional fund raiser to conduct a fundraising campaign
24 for a charitable purpose or charitable organization must be
25 in writing in conformity with this Act between professional
26 fund raisers and charitable trustees and organizations shall
27 be in writing. A true and correct copy of each contract shall
28 be filed by the professional fund raiser and the charitable
29 trustee or organization organizations who is party thereto
30 with the Attorney General prior to the conduct of a
31 fundraising campaign under the contract and annually by the
32 professional fund raiser at and with each reregistration its
33 implementation. Each professional fund raiser shall pay an
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1 annual filing fee of $25 for each active contract filed or on
2 file under this Act. The fee shall be paid at initial and
3 annual re-registration. True and correct copies of such
4 contracts shall be kept on file in the offices of the
5 charitable organization and the professional fund raiser
6 during the term thereof and until the expiration of a period
7 of 3 years subsequent to the date the solicitation of
8 contributions provided for therein actually terminates. Any
9 person who violates the provisions of this Section is guilty
10 of a Class A misdemeanor.
11 (b) Any contract between a trust or charitable
12 organization and a professional fund raiser must contain an
13 estimated reasonable budget disclosing the target amount of
14 funds to be raised over the contract period, the type and
15 amount of projected expenses related thereto, and the amount
16 projected to be paid to the charitable organization. In
17 addition, the contract shall disclose the period of its
18 duration, the geographic scope for fundraising, describe the
19 methods of fundraising to be employed and provide assurance
20 of record keeping and accountability. If the contract
21 provides that the professional fund raiser will retain or be
22 paid a stated percentage of the gross amount raised, an
23 estimate of the target gross amount to be raised and to be
24 paid to charity shall be stated in the contract. If the
25 contract provides for payment on an hourly rate for fund
26 raising, the total estimated hourly amount, as well as the
27 estimated number of hours to be spent in fund raising, shall
28 be stated.
29 (c) All professional fund raiser contracts shall be
30 approved and accepted by a majority of the charitable
31 organization's trustees, and in the case of a not for profit
32 charitable corporation, by its president and at least one
33 member of its Board of Directors, and the contract shall
34 recite said approval and acceptance by certification by a
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1 trustee or the corporation's president.
2 (d) All professional fund raiser contracts shall
3 disclose the amounts of all commissions, salaries and fees
4 charged by the fund raiser, its agents, employees and
5 solicitors and the method used for computing such.
6 (e) If the professional fund raiser, its agents,
7 solicitors or employees or members of the families thereof
8 own an interest in, manage or are a supplier or vendor of
9 fund raising goods or services, the relationship shall be
10 fully disclosed in the contract, as well as the method of
11 determining the related supplier's or vendor's charges.
12 (f) If the professional fund raiser, in the course of
13 raising funds, is also providing charitable education program
14 services to the public, the charitable organization shall
15 approve or provide to the fund raiser a written text of all
16 public educational program materials to be disseminated when
17 fund raising, copies of which shall be maintained by the
18 parties.
19 (g) Any person who knowingly violates any provision of
20 this Section may be subject to injunctive relief and removal
21 from office. Failure to file a contract and pay the
22 prescribed annual contract filing fee prior to conducting a
23 fund raiser for an organization shall in addition to other
24 relief subject the professional fund raiser to a late filing
25 fee of $1,000 for each contract not timely filed.
26 (h) A professional fund raiser or professional solicitor
27 that materially fails to comply with this Section shall not
28 be entitled to collect or retain any compensation,
29 commission, fee or salary received in any campaign in which
30 the violation occurs. Upon application, by the Attorney
31 General to a court of competent jurisdiction, the court may
32 apply equitable considerations in enforcing this Section.
33 (Source: P.A. 87-755.)
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1 (225 ILCS 460/17) (from Ch. 23, par. 5117)
2 Sec. 17. In any solicitation to the public for a
3 charitable organization by a professional fund raiser or
4 professional solicitor:
5 (a) The public member shall be promptly informed by
6 statement in verbal communications and by clear and
7 unambiguous disclosure in written materials that the
8 solicitation is being made by a paid professional fund raiser
9 or solicitor if such disclosure is requested by the person
10 solicited. The fund raiser, solicitor, and materials used
11 shall also provide the professional fund raiser's name and a
12 statement that contracts and reports regarding the charity
13 are on file with the Illinois Attorney General and
14 additionally, in verbal communications, the solicitor's true
15 name must be provided.
16 (b) If the professional fund raiser employs or uses a
17 contract which provides that it will be paid or retain a
18 certain percentage of the gross amount of each contribution
19 or shall be paid an hourly rate for solicitation, or the
20 contract provides the charity will receive a fixed amount or
21 a fixed percentage of each contribution, the professional
22 fund raiser and person soliciting shall disclose to persons
23 being solicited the percentage amount retained or hourly rate
24 paid to the professional fund raiser and solicitor pursuant
25 to the contract, and the amount or the percentage to be
26 received by the charitable organization from each
27 contribution, if such disclosure is requested by the person
28 solicited.
29 (c) Any person or professional fund raiser, professional
30 solicitor soliciting charitable contributions from the public
31 on behalf of a public safety personnel organization shall not
32 misrepresent that they are in fact a law enforcement person,
33 firefighter, or member of the organization for whom the
34 contributions are being raised and if requested by the person
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1 solicited they shall promptly provide their actual name, the
2 exact legal name of the organization with which they are
3 employed and its correct address, as well as, the exact name
4 of the charitable organization.
5 (Source: P.A. 87-755.)
6 (225 ILCS 460/21) (from Ch. 23, par. 5121)
7 Sec. 21. Illinois Charity Bureau Fund. The court in its
8 discretion may place costs, fines, and penalties collected
9 pursuant to this Act into the Illinois Charity Bureau
10 Attorney General's Charitable Trust Enforcement Fund created
11 in Section 19 of the Charitable Trust Act and such shall be
12 expended by the Attorney General for the enforcement and
13 administration of this Act to protect the public interest in
14 charitable funds and subject to transfer by appropriation of
15 said funds to the Attorney General's Grant Fund at the
16 Attorney General's direction.
17 (Source: P.A. 87-755.)
18 (225 ILCS 460/22 new)
19 Sec. 22. All fees and penalties collected by the
20 Attorney General pursuant to this Act shall be paid and
21 deposited into the Illinois Charity Bureau Fund in the State
22 Treasury. Moneys in the Fund shall be appropriated to the
23 Attorney General for charitable trust enforcement purposes as
24 an addition to other appropriated funds and be used by the
25 Attorney General to provide the public with information
26 concerning charitable trusts and organizations and for
27 charitable trust enforcement activities.
28 (225 ILCS 460/23 new)
29 Sec. 23. As a part of charitable trust enforcement and
30 public disclosure, a task force composed of citizens chosen
31 by the Attorney General to be known as the Attorney General's
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1 Charitable Advisory Council shall be and is hereby formed for
2 a 3-year period. This Advisory Council shall study issues of
3 charitable giving, volunteerism, and fundraising in this
4 State and specifically shall evaluate and study the concept
5 of establishing a peer review rating system of the financial
6 reports and operations of charitable trusts and organizations
7 registered in Illinois. The ratings should seek to evaluate
8 the performance of those organizations in terms of program
9 services delivered for each dollar spent. The purpose of the
10 ratings of a charity's performance is to provide those
11 performance ratings to the donating public. The Advisory
12 Council shall consider and report as to the feasibility of
13 rating all charitable organizations registered or of
14 establishing a system of rating only those seeking to be
15 rated and allowing those rated to represent the rating during
16 solicitations. The Advisory Council members shall serve
17 without compensation, and the expenses of the Council may be
18 paid for out of the Illinois Charity Bureau Fund in an amount
19 not to exceed $10,000 per year and in the discretion of the
20 Attorney General.
21 Section 10. The Charitable Trust Act is amended by
22 changing Sections 2, 3, 5, 7, 12, and 19 as follows:
23 (760 ILCS 55/2) (from Ch. 14, par. 52)
24 Sec. 2. This Act applies to any and all trustees trustee,
25 as defined in Section 3, holding property of a value in
26 excess of $4,000.
27 (Source: Laws 1963, p. 1462.)
28 (760 ILCS 55/3) (from Ch. 14, par. 53)
29 Sec. 3. "Trustee" means any person, individual, group of
30 individuals, association, corporation, not-for-profit
31 corporation, estate representative, or other legal entity
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1 holding property for or solicited for any charitable purpose;
2 or any chief operating officer, director, executive director
3 or owner of a corporation soliciting or holding property for
4 a charitable purpose.
5 (Source: P.A. 87-755.)
6 (760 ILCS 55/5) (from Ch. 14, par. 55)
7 Sec. 5. (a) The Attorney General shall establish and
8 maintain a register of trustees subject to this Act and of
9 the particular trust or other relationship under which they
10 hold property for charitable purposes and, to that end, shall
11 conduct whatever investigation is necessary, and shall obtain
12 from public records, court officers, taxing authorities,
13 trustees and other sources, copies of instruments, reports
14 and records and whatever information is needed for the
15 establishment and maintenance of the register.
16 (b) A registration statement shall be signed and
17 verified under penalty of perjury by 2 officers of a
18 corporate charitable organization or by 2 trustees if not a
19 corporate organization. One signature will be accepted if
20 there is only one officer or one trustee. A registration fee
21 of $15 shall be paid with each initial registration. If a
22 person, trustee or organization fails to maintain a
23 registration of a trust or organization as required by this
24 Act, and its registration is cancelled as provided in this
25 Act, and if that trust or organization remains in existence
26 and by law is required to be registered, in order to
27 re-register, a new registration must be filed accompanied by
28 required financial reports, and in all instances where
29 re-registration is required, submitted, and allowed, the new
30 re-registration materials must be filed, accompanied by a
31 re-registration fee of $200.
32 (c) If a person or trustee fails to register or maintain
33 registration of a trust or organization as provided in this
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1 Section, the person or trustee is subject to injunction, to
2 removal, to account, and to appropriate other relief before a
3 court of competent jurisdiction exercising chancery
4 jurisdiction. In the event of such action, the court shall
5 impose, as an additional surcharge, a civil penalty of not
6 less that $500 nor more than $1,000 against any trustee or
7 other person who fails to register or to maintain a
8 registration required under this Act. The collected penalty
9 shall be used for charitable trust enforcement and for
10 providing charitable trust information to the public.
11 (Source: P.A. 87-755.)
12 (760 ILCS 55/7) (from Ch. 14, par. 57)
13 Sec. 7. (a) Except as otherwise provided, every trustee
14 subject to this Act shall, in addition to filing copies of
15 the instruments previously required, file with the Attorney
16 General periodic annual written reports under oath, setting
17 forth information as to the nature of the assets held for
18 charitable purposes and the administration thereof by the
19 trustee, in accordance with rules and regulations of the
20 Attorney General.
21 (b) The Attorney General shall make rules and
22 regulations as to the time for filing reports, the contents
23 thereof, and the manner of executing and filing them. He may
24 classify trusts and other relationships concerning property
25 held for a charitable purpose as to purpose, nature of
26 assets, duration of the trust or other relationship, amount
27 of assets, amounts to be devoted to charitable purposes,
28 nature of trustee, or otherwise, and may establish different
29 rules for the different classes as to time and nature of the
30 reports required to the ends (1) that he shall receive
31 reasonably current, annual reports as to all charitable
32 trusts or other relationships of a similar nature, which will
33 enable him to ascertain whether they are being properly
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1 administered, and (2) that periodic reports shall not
2 unreasonably add to the expense of the administration of
3 charitable trusts and similar relationships. The Attorney
4 General may suspend the filing of reports as to a particular
5 charitable trust or relationship for a reasonable,
6 specifically designated time upon written application of the
7 trustee filed with the Attorney General and after the
8 Attorney General has filed in the register of charitable
9 trusts a written statement that the interests of the
10 beneficiaries will not be prejudiced thereby and that
11 periodic reports are not required for proper supervision by
12 his office.
13 (c) A copy of an account filed by the trustee in any
14 court having jurisdiction of the trust or other
15 relationship,; if the account has been approved by the court
16 in which it was filed and notice given to the Attorney
17 General as an interested party, may be filed as a report
18 required by this Section.
19 (d) The first report for a trust or similar relationship
20 hereafter established, unless the filing thereof is suspended
21 as herein provided, shall be filed not later than one year
22 after any part of the income or principal is authorized or
23 required to be applied to a charitable purpose. If any part
24 of the income or principal of a trust previously established
25 is authorized or required to be applied to a charitable
26 purpose at the time this Act takes effect, the first report,
27 unless the filing thereof is suspended, shall be filed within
28 6 months after the effective date of this Act. In addition,
29 every trustee registered hereunder that received more than
30 $15,000 in revenue during a trust fiscal year or has
31 possession of more than $15,000 of assets at any time during
32 a fiscal year shall file an annual financial report within 6
33 months of the close of the trust's or organization's fiscal
34 year, and if a calendar year the report shall be due on each
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1 June 30 of the following year. Every trustee registered
2 hereunder that did not receive more than $15,000 in revenue
3 or hold more than $15,000 in assets during a fiscal year
4 shall file only a simplified summary financial statement
5 disclosing only the gross receipts, total disbursements, and
6 assets on hand at the end of the year, on forms prescribed by
7 the Attorney General.
8 (e) The periodic reporting provisions of this Act do not
9 apply to any trustee of a trust which is the subject matter
10 of an adversary proceeding pending in the circuit court in
11 this State. However, upon commencement of the proceeding the
12 trustee shall file a report with the Attorney General
13 informing him of that fact together with the title and number
14 of the cause and the name of the court. Upon entry of final
15 judgment in the cause the trustee shall in like manner report
16 that fact to the Attorney General and fully account for all
17 periods of suspension.
18 (f) The Attorney General in his discretion may, pursuant
19 to rules and regulations promulgated by the Attorney General,
20 accept executed copies of federal Internal Revenue returns
21 and reports as a portion of the annual reporting. The report
22 shall include a statement of any changes in purpose or any
23 other information required to be contained in the
24 registration form filed on behalf of the organization. The
25 report shall be signed under penalty of perjury by the
26 president and the chief fiscal officer of any corporate
27 organization or by 2 trustees if not a corporation. One
28 signature shall be accepted if there is only one officer or
29 trustee.
30 (g) The Attorney General shall cancel the registration
31 of any trust or organization that wilfully fails to comply
32 with subsections (a), (b), (c) or (d) of this Section within
33 the time prescribed, and the assets of the organization may
34 through court proceedings be collected, debts paid and
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1 proceeds distributed under court supervision to other
2 charitable purposes upon an action filed by the Attorney
3 General as law and equity allow. Upon timely written
4 request, the due date for filing may be extended by the
5 Attorney General for a period of 60 days. Notice of
6 registration cancellation shall be mailed by regular mail to
7 the registrant at the registration file address or to its
8 registered agent or president 21 days before the effective
9 date of the cancellation. Reports submitted after
10 registration is canceled shall require reregistration.
11 (h) Every trustee registered hereunder that received in
12 any fiscal year more than $15,000 in revenue or held more
13 than $15,000 in assets shall pay a fee of $15 along with each
14 annual financial report filed pursuant to this Act. If an
15 annual report is not timely filed, a late filing fee of an
16 additional $100 is imposed and shall be paid as a condition
17 of filing a late report. Reports submitted without the
18 proper fee shall not be accepted for filing.
19 (Source: P.A. 87-755.)
20 (760 ILCS 55/12) (from Ch. 14, par. 62)
21 Sec. 12. The Attorney General may institute appropriate
22 proceedings to secure compliance with this Act and to secure
23 the proper administration of any trust or other relationship
24 to which this Act applies. Venue shall be proper in any
25 county where the Attorney General accepts and maintains the
26 list of registrations. In furtherance of judicial economy,
27 actions filed for violation of this Act may name multiple
28 trustees, trusts, and organizations in a joint action where
29 each has engaged in similar conduct in violation of this Act
30 or where similar relief is sought against those defendants
31 for violation of this Act.
32 (Source: P.A. 87-755.)
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1 (760 ILCS 55/19) (from Ch. 14, par. 69)
2 Sec. 19. There is created in the State Treasury the
3 Illinois Charity Bureau Fund. All fees and penalties
4 collected by the Attorney General pursuant to this Act shall
5 be deposited in the Illinois Charity Bureau Fund in the State
6 Treasury. Moneys in the Fund shall be appropriated to the
7 Attorney General for charitable trust enforcement purposes
8 and dissemination of public information. There is created in
9 the State Treasury the Attorney General's Charitable Trust
10 Enforcement Fund. The court in its discretion may place
11 costs, fines and penalties collected pursuant to this Act
12 into the enforcement fund and the monies shall be expended by
13 the Attorney General for the enforcement and administration
14 of this Act to protect the public interest in charitable
15 funds and subject to transfer of the funds to the Attorney
16 General's Grant Fund at the Attorney General's direction.
17 (Source: P.A. 87-755.)
18 Section 15. The State Finance Act is amended by changing
19 Section 5.321 as follows:
20 (30 ILCS 105/5.321) (from Ch. 127, par. 141.321)
21 Sec. 5.321. The Illinois Charity Bureau Attorney
22 General's Charitable Trust Enforcement Fund.
23 (Source: P.A. 87-755; 87-895.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.".