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91_SB0392
LRB9101147ACpk
1 AN ACT relating to charitable organizations and
2 activities, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Solicitation for Charity Act is amended
6 by changing Sections 2, 3, 4, 6, and 23 as follows:
7 (225 ILCS 460/2) (from Ch. 23, par. 5102)
8 Sec. 2. Registration; rules; penalties.
9 (a) Every charitable organization, except as otherwise
10 provided in Section 3 of this Act, which solicits or intends
11 to solicit contributions from persons in this State or which
12 is located in this State, by any means whatsoever shall,
13 prior to any solicitation, file with the Attorney General
14 upon forms prescribed by him, a registration statement,
15 accompanied by a registration fee of $15, which statement
16 shall include the following certified information:
17 1. The name of the organization and the name or
18 names under which it intends to solicit contributions.
19 2. The names and addresses of the officers,
20 directors, trustees, and chief executive officer of the
21 organization.
22 3. The addresses of the organization and the
23 addresses of any offices in this State. If the
24 organization does not maintain a principal office, the
25 name and address of the person having custody of its
26 financial records.
27 4. Where and when the organization was legally
28 established, the form of its organization and its tax
29 exempt status.
30 5. The purpose for which the organization is
31 organized and the purpose or purposes for which the
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1 contributions to be solicited will be used.
2 6. The date on which the fiscal year of the
3 organization ends.
4 7. Whether the organization is authorized by any
5 other governmental authority to solicit contributions and
6 whether it is or has ever been enjoined by any court from
7 soliciting contributions.
8 8. The names and addresses of any professional fund
9 raisers who are acting or have agreed to act on behalf of
10 the organization.
11 9. Methods by which solicitation will be made.
12 10. Copies of contracts between charitable
13 organizations and professional fund raisers relating to
14 financial compensation or profit to be derived by the
15 professional fund raisers. Where any such contract is
16 executed after filing of registration statement, a copy
17 thereof shall be filed within 10 days of the date of
18 execution.
19 11. Board, group, or individual having final
20 discretion as to the distribution and use of
21 contributions received.
22 (b) The registration statement shall be signed by the
23 president or other authorized officer and the chief fiscal
24 officer of the organization.
25 (c) Such registration shall remain in effect unless it
26 is either cancelled as provided in this Act or withdrawn by
27 the organization.
28 (d) Every registered organization shall notify the
29 Attorney General within 10 days of any change in the
30 information required to be furnished by such organization
31 under paragraphs 1 through 11 of subdivision (a) of this
32 Section.
33 (e) In no event shall a registration of a charitable
34 organization continue, or be continued, in effect after the
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1 date such organization should have filed, but failed to file,
2 an annual report in accordance with the requirements of
3 Section 4 of this Act, and such organization shall not be
4 eligible to file a new registration until it shall have filed
5 the required annual report with the Attorney General. If such
6 report is subsequently filed and accepted by the Attorney
7 General such organization may file a new registration. If a
8 person, trustee, or organization fails to timely register or
9 maintain a registration of a trust or organization as
10 required by this Act or if its registration is cancelled as
11 provided in this Act, and if that trust or organization
12 remains in existence and by law is required to be registered,
13 in order to re-register or file a late registration a current
14 registration statement must be filed accompanied by financial
15 reports in the form required herein for all past years. In
16 all instances where re-registration and late registration are
17 allowed, the new registration materials must be filed,
18 accompanied by a penalty registration fee of $200.
19 (f) Subject to reasonable rules and regulations adopted
20 by the Attorney General, the register, registration
21 statements, annual reports, financial statements,
22 professional fund raisers' contracts, bonds, applications for
23 registration and re-registration, and other documents
24 required to be filed with the Attorney General shall be open
25 to public inspection.
26 Every person subject to this Act shall maintain accurate
27 and detailed books and records at the principal office of the
28 organization to provide the information required herein. All
29 such books and records shall be open to inspection at all
30 reasonable times by the Attorney General or his duly
31 authorized representative.
32 (g) Where any local, county or area division of a
33 charitable organization is supervised and controlled by a
34 superior or parent organization, incorporated, qualified to
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1 do business, or doing business within this State, such local,
2 county or area division shall not be required to register
3 under this Section if the superior or parent organization
4 files a registration statement on behalf of the local, county
5 or area division in addition to or as part of its own
6 registration statement. Where a registration statement has
7 been filed by a superior or parent organization as provided
8 in Section 2(g) of this Act, it shall file the annual report
9 required under Section 4 of this Act on behalf of the local,
10 county or area division in addition to or as part of its own
11 report, but the accounting information required under Section
12 4 of this Act shall be set forth separately and not in
13 consolidated form with respect to every local, county or area
14 division which raises or expends more than $4,000.
15 (h) The Attorney General may make rules of procedure and
16 regulations necessary for the administration of this Act.
17 Copies of all such rules of procedure and regulations and of
18 all changes therein, duly certified by the Attorney General,
19 shall be filed in the office of the Secretary of State.
20 (i) If a person, organization, or trustee fails to
21 register or if registration of a trust or organization is
22 cancelled as provided in this Act, the person, organization
23 or trustee is subject to injunction, to removal, to account,
24 and to appropriate other relief before the circuit court
25 exercising chancery jurisdiction. In addition to any other
26 relief granted under this Act, the court may shall impose a
27 civil penalty of not less than $500 nor more than $1,000
28 against the organization or trust estate that failed each and
29 every trustee, organization, and person who fails to register
30 or failed who fails to maintain a registration required under
31 this Act. The collected penalty funds shall be used for
32 charitable trust enforcement and for providing charitable
33 trust information to the public.
34 (Source: P.A. 90-469, eff. 8-17-97.)
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1 (225 ILCS 460/3) (from Ch. 23, par. 5103)
2 Sec. 3. Exemptions.
3 (a) Upon initial filing of a registration statement
4 pursuant to Section 2 of this Act and notification by the
5 Attorney General of his determination that the organizational
6 purposes or circumstances specified in this paragraph for
7 exemption are actual and genuine, the following entities
8 shall be exempt from all the report filing provisions of this
9 Act, except for the requirements set forth in Section 2 of
10 this Act:
11 1. A corporation sole or other religious
12 corporation, trust or organization incorporated or
13 established for religious purposes, nor to any agency or
14 organization incorporated or established for charitable,
15 hospital or educational purposes and engaged in
16 effectuating one or more of such purposes, that is
17 affiliated with, operated by, or supervised or controlled
18 by a corporation sole or other religious corporation,
19 trust or organization incorporated or established for
20 religious purposes, nor to other religious agencies or
21 organizations which serve religion by the preservation of
22 religious rights and freedom from persecution or
23 prejudice or by fostering religion, including the moral
24 and ethical aspects of a particular religious faith.
25 2. Any charitable organization which does not
26 intend to solicit and receive and does not actually
27 receive contributions in excess of $15,000 during any 12
28 month period ending December 31 of any year. However, if
29 the gross contributions received by such charitable
30 organization during any 12 month period ending December
31 31 of any year shall be in excess of $15,000, it shall
32 file reports as required under this Act and the
33 provisions of this Act shall apply.
34 (b) The following persons shall not be required to
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1 register with the Attorney General:
2 1. The University of Illinois, Southern Illinois
3 University, Eastern Illinois University, Illinois State
4 Normal University, Northern Illinois University, Western
5 Illinois University, all educational institutions that
6 are recognized by the State Board of Education or that
7 are accredited by a regional accrediting association or
8 by an organization affiliated with the National
9 Commission on Accrediting, any foundation having an
10 established identity with any of the aforementioned
11 educational institutions, any other educational
12 institution confining its solicitation of contributions
13 to its student body, alumni, faculty and trustees, and
14 their families, or a library established under the laws
15 of this State, provided that the annual financial report
16 of such institution or library shall be filed with the
17 State Board of Education, Governor, Illinois State
18 Library, County Library Board or County Board, as
19 provided by law.
20 2. Fraternal, patriotic, social, educational,
21 alumni organizations and historical societies when
22 solicitation of contributions is confined to their
23 membership. This exemption shall be extended to any
24 subsidiary of a parent or superior organization exempted
25 by Sub-paragraph 2 of Paragraph (b) of Section 3 of this
26 Act where such solicitation is confined to the membership
27 of the subsidiary, parent or superior organization.
28 3. Persons requesting any contributions for the
29 relief or benefit of any individual, specified by name at
30 the time of the solicitation, if the contributions
31 collected are turned over to the named beneficiary, first
32 deducting reasonable expenses for costs of banquets, or
33 social gatherings, if any, provided all fund raising
34 functions are carried on by persons who are unpaid,
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1 directly or indirectly, for such services.
2 4. Any bona fide union, bona fide political
3 organization or bona fide political action committee,
4 which does not solicit funds for a charitable purpose.
5 5. Any charitable organization receiving an
6 allocation from an incorporated community chest or united
7 fund, provided such chest or fund is complying with the
8 provisions of this Act relating to registration and
9 filing of annual reports with the Attorney General, and
10 provided such organization does not actually receive, in
11 addition to such allocation, contributions in excess of
12 $4,000 during any 12 month period ending June 30th of any
13 year, and provided further that all the fund raising
14 functions of such organization are carried on by persons
15 who are unpaid for such services. However, if the gross
16 contributions other than such allocation received by such
17 charitable organization during any 12 month period ending
18 June 30th of any year shall be in excess of $4,000, it
19 shall within 30 days after the date it shall have
20 received such contributions in excess of $4,000 register
21 with the Attorney General as required by Section 2.
22 6. A bona fide organization of volunteer firemen,
23 or a bona fide auxiliary or affiliate of such
24 organization, provided all its fund raising activities
25 are carried on by members of such an organization or an
26 affiliate thereof and such members receive no
27 compensation, directly or indirectly, therefor.
28 7. Any charitable organization operating a nursery
29 for infants awaiting adoption providing that all its fund
30 raising activities are carried on by members of such an
31 organization or an affiliate thereof and such members
32 receive no compensation, directly or indirectly therefor.
33 8. Any corporation established by the Federal
34 Congress that is required by federal law to submit annual
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1 reports of its activities to Congress containing itemized
2 accounts of all receipts and expenditures after being
3 duly audited.
4 9. Any boys' club which is affiliated with the
5 Boys' Club of America, a corporation chartered by
6 Congress; provided, however, that such an affiliate
7 properly files the reports required by the Boys' Club of
8 America and that the Boys' Club of America files with the
9 Government of the United States the reports required by
10 its federal charter.
11 10. Any veterans organization chartered or
12 incorporated under federal law and any veterans
13 organization which is affiliated with, and recognized in
14 the bylaws of, a congressionally chartered or
15 incorporated veterans organization; provided, however,
16 that the affiliate properly files the reports required by
17 the congressionally chartered or incorporated veterans
18 organization, that the congressionally chartered or
19 incorporated veterans organization files with the
20 government of the United States the reports required by
21 its federal charter, and that copies of such federally
22 required reports are filed with the Attorney General.
23 11. Any parent-teacher organization that is
24 controlled by teachers and parents of children attending
25 a particular public or private school for which the
26 organization is named and solicits contributions for the
27 benefit of that particular school; provided that:
28 (i) the school is specified by name at the
29 time the solicitation is made;
30 (ii) all of the contributions are turned over
31 to the school, after first deducting reasonable
32 expenses for fundraising and parent-teacher
33 activities;
34 (iii) all fundraising functions are carried on
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1 by persons who are not paid, either directly or
2 indirectly, for their fundraising services;
3 (iv) the total contributions, less reasonable
4 fundraising expenses, do not exceed $50,000 in any
5 calendar year;
6 (v) the organization provides the school at
7 least annually with a complete accounting of all
8 contributions received; and
9 (vi) the governing board of the school
10 annually certifies to the Attorney General, if the
11 Attorney General makes a request for certification,
12 that the parent-teacher organization has provided
13 the school with a full accounting and that the
14 organization has provided benefits and contributions
15 to the school.
16 (Source: P.A. 90-469, eff. 8-17-97.)
17 (225 ILCS 460/4) (from Ch. 23, par. 5104)
18 Sec. 4. (a) Every charitable organization registered
19 pursuant to Section 2 of this Act which shall receive in any
20 12 month period ending upon its established fiscal or
21 calendar year contributions in excess of $150,000 and every
22 charitable organization whose fund raising functions are not
23 carried on solely by staff employees or persons who are
24 unpaid for such services, if the organization shall receive
25 in any 12 month period ending upon its established fiscal or
26 calendar year contributions in excess of $25,000, shall file
27 a written report with the Attorney General upon forms
28 prescribed by him, on or before June 30 of each year if its
29 books are kept on a calendar basis, or within 6 months after
30 the close of its fiscal year if its books are kept on a
31 fiscal year basis, which written report shall include a
32 financial statement covering the immediately preceding 12
33 month period of operation. Such financial statement shall
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1 include a balance sheet and statement of income and expense,
2 and shall be consistent with forms furnished by the Attorney
3 General clearly setting forth the following: gross receipts
4 and gross income from all sources, broken down into total
5 receipts and income from each separate solicitation project
6 or source; cost of administration; cost of solicitation; cost
7 of programs designed to inform or educate the public; funds
8 or properties transferred out of this State, with explanation
9 as to recipient and purpose; cost of fundraising;
10 compensation paid to trustees; and total net amount disbursed
11 or dedicated for each major purpose, charitable or otherwise.
12 Such report shall also include a statement of any changes in
13 the information required to be contained in the registration
14 form filed on behalf of such organization. The report shall
15 be signed by the president or other authorized officer and
16 the chief fiscal officer of the organization who shall
17 certify that the statements therein are true and correct to
18 the best of their knowledge, and shall be accompanied by an
19 opinion signed by an independent certified public accountant
20 that the financial statement therein fairly represents the
21 financial operations of the organization in sufficient detail
22 to permit public evaluation of its operations. Said opinion
23 may be relied upon by the Attorney General.
24 (b) Every organization registered pursuant to Section 2
25 of this Act which shall receive in any 12 month period ending
26 upon its established fiscal or calendar year of any year
27 contributions:
28 (1) in excess of $15,000, but not in excess of
29 $25,000 during a fiscal year shall file only a simplified
30 summary financial statement disclosing only the gross
31 receipts, total disbursements, and assets on hand at the
32 end of the year, on forms prescribed by the Attorney
33 General; or
34 (2) in excess of $25,000, but not in excess of $150,000, if
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1 it is not required to submit a report under subsection
2 (a) of this Section, shall file a written report with the
3 Attorney General upon forms prescribed by him, on or
4 before June 30 of each year if its books are kept on a
5 calendar basis, or within 6 months after the close of its
6 fiscal year if its books are kept on a fiscal year basis,
7 which shall include a financial statement covering the
8 immediately preceding 12-month period of operation
9 limited to a statement of such organization's gross
10 receipts from contributions, the gross amount expended
11 for charitable educational programs, other charitable
12 programs, management expense, and fund raising expenses
13 including a separate statement of the cost of any goods,
14 services or admissions supplied as part of its
15 solicitations, and the disposition of the net proceeds
16 from contributions, including compensation paid to
17 trustees, consistent with forms furnished by the Attorney
18 General. Such report shall also include a statement of
19 any changes in the information required to be contained
20 in the registration form filed on behalf of such
21 organization. The report shall be signed by the president
22 or other authorized officer and the chief fiscal officer
23 of the organization who shall certify that the statements
24 therein are true and correct to the best of their
25 knowledge.
26 (c) For any fiscal or calendar year of any organization
27 registered pursuant to Section 2 of this Act in which such
28 organization would have been exempt from registration
29 pursuant to Section 3 of this Act if it had not been so
30 registered, or in which it did not solicit or receive
31 contributions, such organization shall file, on or before
32 June 30 of each year if its books are kept on a calendar
33 basis, or within 6 months after the close of its fiscal year
34 if its books are kept on a fiscal year basis, instead of the
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1 reports required by subdivisions (a) or (b) of this Section,
2 a statement certified under penalty of perjury by its
3 president and chief fiscal officer stating the exemption and
4 the facts upon which it is based or that such organization
5 did not solicit or receive contributions in such fiscal year.
6 The statement shall also include a statement of any changes
7 in the information required to be contained in the
8 registration form filed on behalf of such organization.
9 (d) As an alternative means of satisfying the duties and
10 obligations otherwise imposed by this Section, any veterans
11 organization chartered or incorporated under federal law and
12 any veterans organization which is affiliated with, and
13 recognized in the bylaws of, a congressionally chartered or
14 incorporated organization may, at its option, annually file
15 with the Attorney General the following documents:
16 (1) A copy of its Form 990, as filed with the
17 Internal Revenue Service.
18 (2) Copies of any reports required to be filed by
19 the affiliate with the congressionally chartered or
20 incorporated veterans organization, as well as copies of
21 any reports filed by the congressionally chartered or
22 incorporated veterans organization with the government of
23 the United States pursuant to federal law.
24 (3) Copies of all contracts entered into by the
25 congressionally chartered or incorporated veterans
26 organization or its affiliate for purposes of raising
27 funds in this State, such copies to be filed with the
28 Attorney General no more than 30 days after execution of
29 the contracts.
30 (e) As an alternative means of satisfying all of the
31 duties and obligations otherwise imposed by this Section, any
32 person, pursuant to a contract with a charitable
33 organization, a veterans organization or an affiliate
34 described or referred to in subsection (d), who receives,
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1 collects, holds or transports as the agent of the
2 organization or affiliate for purposes of resale any used or
3 second hand personal property, including but not limited to
4 household goods, furniture or clothing donated to the
5 organization or affiliate may, at its option, annually file
6 with the Attorney General the following documents,
7 accompanied by an annual filing fee of $15:
8 (1) A notarized report including the number of
9 donations of personal property it has received on behalf
10 of the charitable organization, veterans organization or
11 affiliate during the proceeding year. For purposes of
12 this report, the number of donations of personal property
13 shall refer to the number of stops or pickups made
14 regardless of the number of items received at each stop
15 or pickup. The report may cover the person's fiscal
16 year, in which case it shall be filed with the Attorney
17 General no later than 90 days after the close of that
18 fiscal year.
19 (2) All contracts with the charitable organization,
20 veterans organization or affiliate under which the person
21 has acted as an agent for the purposes listed above.
22 (3) All contracts by which the person agreed to pay
23 the charitable organization, veterans organization or
24 affiliate a fixed amount for, or a fixed percentage of
25 the value of, each donation of used or second hand
26 personal property. Copies of all such contracts shall be
27 filed no later than 30 days after they are executed.
28 (f) The Attorney General may seek appropriate equitable
29 relief from a court or, in his discretion, cancel the
30 registration of any organization which fails to comply with
31 subdivision (a), (b) or (c) of this Section within the time
32 therein prescribed, or fails to furnish such additional
33 information as is requested by the Attorney General within
34 the required time; except that the time may be extended by
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1 the Attorney General for a period not to exceed 60 days upon
2 a timely written request and for good cause stated. Unless
3 otherwise stated herein, the Attorney General shall, by rule,
4 set forth the standards used to determine whether a
5 registration shall be cancelled as authorized by this
6 subsection. Such standards shall be stated as precisely and
7 clearly as practicable, to inform fully those persons
8 affected. Notice of such cancellation shall be mailed to the
9 registrant at least 15 days before the effective date
10 thereof.
11 (g) The Attorney General in his discretion may, pursuant
12 to rule, accept executed copies of federal Internal Revenue
13 returns and reports as a portion of the foregoing annual
14 reporting in the interest of minimizing paperwork, except
15 there shall be no substitute for the independent certified
16 public accountant audit opinion required by this Act.
17 (h) The Attorney General after canceling the
18 registration of any trust or organization which fails to
19 comply with this Section within the time therein prescribed
20 may by court proceedings, in addition to all other relief,
21 seek to collect the assets and distribute such under court
22 supervision to other charitable purposes.
23 (i) Every trustee, person, and organization required to
24 file an annual report shall pay a filing fee of $15 with each
25 annual financial report filed pursuant to this Section. If a
26 proper and complete annual report is not timely filed, a late
27 filing fee of an additional $100 is imposed and shall be paid
28 as a condition of filing a late report. Reports submitted
29 without the proper fee shall not be accepted for filing.
30 Payment of the late filing fee and acceptance by the Attorney
31 General shall both be conditions of filing a late report.
32 All late filing fees shall be used to provide charitable
33 trust enforcement and dissemination of charitable trust
34 information to the public and shall be maintained in a
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1 separate fund for such purpose known as the Illinois Charity
2 Bureau Fund.
3 (j) There is created hereby a separate special fund in
4 the State Treasury to be known as the Illinois Charity Bureau
5 Fund. That Fund shall be under the control of the Attorney
6 General, and the funds, fees, and penalties deposited therein
7 shall be used by the Attorney General to enforce the
8 provisions of this Act and to gather and disseminate
9 information about charitable trustees and organizations to
10 the public.
11 (Source: P.A. 89-626, eff. 8-9-96; 90-469, eff. 8-17-97.)
12 (225 ILCS 460/6) (from Ch. 23, par. 5106)
13 Sec. 6. Professional fund raiser registration.
14 (a) No person shall act as a professional fund raiser or
15 allow a professional fund raiser entity he owns, manages or
16 controls to act for a charitable organization required to
17 register pursuant to Section 2 of this Act, or for any
18 organization as described in Section 3 of this Act before he
19 has registered himself or the entity with the Attorney
20 General or after the expiration or cancellation of such
21 registration or any renewal thereof. Applications for
22 registration and re-registration shall be in writing, under
23 oath, in the form prescribed by the Attorney General. A
24 registration fee of $100 shall be paid with each registration
25 and upon each re-registration. Registration and
26 re-registration can proceed only if all financial reports
27 have been filed in proper form and all fees have been paid in
28 full. If the applicant intends to or does take control or
29 possession of charitable funds, the applicant shall at the
30 time of making application, file with, and have approved by,
31 the Attorney General a bond in which the applicant shall be
32 the principal obligor, in the sum of $10,000, with one or
33 more corporate sureties licensed to do business in this State
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1 whose liability in the aggregate will at least equal such
2 sum. The bond shall run to the Attorney General for the use
3 of the State and to any person who may have a cause of action
4 against the obligor of the bond for any malfeasance or
5 misfeasance in the conduct of such solicitation; provided,
6 that the aggregate limit of liability of the surety to the
7 State and to all such persons shall, in no event, exceed the
8 sum of such bond. Registration or re-registration when
9 effected shall be for a period of one year, or a part
10 thereof, expiring on the 30th day of June, and may be renewed
11 upon written application, under oath, in the form prescribed
12 by the Attorney General and the filing of the bond for
13 additional one year periods. Every professional fund raiser
14 required to register pursuant to this Act shall file an
15 annual written report with the Attorney General containing
16 such information as he may require by rule. Certification
17 shall be required for only information within the
18 professional fund raiser's knowledge.
19 (b) Upon filing a complete registration statement, a
20 professional fund raiser shall be given a registration number
21 and shall be considered registered. If the materials
22 submitted are determined to be inaccurate or incomplete, the
23 Attorney General shall notify the professional fund raiser of
24 his findings and the defect and that within 30 days his
25 registration will be cancelled unless the defect is cured
26 within said time.
27 (c) Every professional fund raiser registered under this
28 Act who takes possession or control of charitable funds
29 directly, indirectly, or through an escrow shall submit a
30 full written accounting to the charitable organization of all
31 funds it or its agents collected on behalf of the charitable
32 organization during the 6 month period ended June 30 of each
33 year, and file a copy of the accounting with the Attorney
34 General. The accounting shall be in writing under oath and
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1 be signed and made on forms as prescribed by the Attorney
2 General and shall be filed by the following September 30 of
3 each year; however, within the time prescribed, and for good
4 cause, the Attorney General may grant a 60 day extension of
5 the due date.
6 (d) Every professional fund raiser registered pursuant
7 to this Act shall also file calendar year written financial
8 reports with the Attorney General containing such information
9 as he may require, on forms prescribed by him, as well as
10 separate financial reports for each separate fund raising
11 campaign conducted. The written report shall be filed under
12 oath on or before April 30 of the following calendar year and
13 be signed and verified under penalty of perjury within the
14 time prescribed. An annual report fee of $25 shall be paid to
15 the Attorney General with the filing of that report. If the
16 report is not timely filed, a late filing fee shall result
17 and must be paid prior to re-registration. The late filing
18 fee shall be calculated at $200 for each and every separate
19 fundraising campaign conducted during the report year. For
20 good cause, the Attorney General may grant a 30 day extension
21 of the due date, in which case a late filing fee shall not be
22 imposed until the expiration of the extension period. A copy
23 of the report shall also be given to the charitable
24 organization by the due date of filing. A professional fund
25 raiser shall only be required to verify information actually
26 available to the professional fund raiser, but in any event
27 an annual report must be timely filed.
28 (e) No person convicted of a felony may register as a
29 professional fund raiser, and no person convicted of a
30 misdemeanor involving fiscal wrongdoing, breach of fiduciary
31 duty or a violation of this Act may register as a
32 professional fund raiser for a period of 5 years from the
33 date of the conviction or the date of termination of the
34 sentence or probation, if any, whichever is later. This
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1 subsection shall not apply to charitable organizations that
2 have as their primary purpose the rehabilitation of criminal
3 offenders, the reintegration of criminal offenders into
4 society, the improvement of the criminal justice system or
5 the improvement of conditions within penal institutions.
6 (f) A professional fund raiser may not cause or allow
7 independent contractors to act on its behalf in soliciting
8 charitable contributions other than registered professional
9 solicitors. A professional fund raiser must maintain the
10 names, addresses and social security numbers of all of its
11 professional solicitors for a period of at least 2 years.
12 (g) Any person who knowingly violates the provisions of
13 subsection subsections (a), (e) and (f) of this Section is
14 guilty of a Class 4 felony. Any person who fails after being
15 given notice of delinquency to file written financial reports
16 required by subsections (c) and (d) of this Section which is
17 more than 2 months past its due date is guilty of a Class A
18 misdemeanor.
19 (h) Any person who violates any of the provisions of
20 this Section shall be subject to civil penalties of $5,000
21 for each violation and shall not be entitled to keep or
22 receive fees, salaries, commissions or any compensation as a
23 result or on account of the solicitations or fund raising
24 campaigns, and at the request of the Attorney General or the
25 charitable organization, a court may order that such be
26 forfeited and paid toward and used for a charitable purpose
27 as the court in its discretion determines is appropriate or
28 placed in the Illinois Charity Bureau Fund.
29 (Source: P.A. 90-469, eff. 8-17-97.)
30 (225 ILCS 460/23)
31 Sec. 23. Charitable Advisory Council. As a part of
32 charitable trust enforcement and public disclosure, a task
33 force composed of citizens chosen by the Attorney General to
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1 be known as the Attorney General's Charitable Advisory
2 Council shall be and is hereby formed for a 3-year period.
3 This Advisory Council shall study issues of charitable
4 giving, volunteerism, and fundraising in this State and
5 specifically shall evaluate and study the concept of
6 establishing a peer review rating system of the financial
7 reports and operations of charitable trusts and organizations
8 registered in Illinois. The ratings should seek to evaluate
9 the performance of those organizations in terms of program
10 services delivered for each dollar spent. The purpose of the
11 ratings of a charity's performance is to provide those
12 performance ratings to the donating public. The Advisory
13 Council shall consider and report as to the feasibility of
14 rating all charitable organizations registered or of
15 establishing a system of rating only those seeking to be
16 rated and allowing those rated to represent the rating during
17 solicitations. The Advisory Council members shall serve
18 without compensation, and the expenses of the Council may be
19 paid for out of the Illinois Charity Bureau Fund in an amount
20 not to exceed $10,000 per year and in the discretion of the
21 Attorney General.
22 (Source: P.A. 90-469, eff. 8-17-97.)
23 Section 10. The Charitable Trust Act is amended by
24 changing Sections 5 and 7 as follows:
25 (760 ILCS 55/5) (from Ch. 14, par. 55)
26 Sec. 5. Registration requirement.
27 (a) The Attorney General shall establish and maintain a
28 register of trustees subject to this Act and of the
29 particular trust or other relationship under which they hold
30 property for charitable purposes and, to that end, shall
31 conduct whatever investigation is necessary, and shall obtain
32 from public records, court officers, taxing authorities,
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1 trustees and other sources, copies of instruments, reports
2 and records and whatever information is needed for the
3 establishment and maintenance of the register.
4 (b) A registration statement shall be signed and
5 verified under penalty of perjury by 2 officers of a
6 corporate charitable organization or by 2 trustees if not a
7 corporate organization. One signature will be accepted if
8 there is only one officer or one trustee. A registration fee
9 of $15 shall be paid with each initial registration. If a
10 person, trustee or organization fails to maintain a
11 registration of a trust or organization as required by this
12 Act, and its registration is cancelled as provided in this
13 Act, and if that trust or organization remains in existence
14 and by law is required to be registered, in order to
15 re-register, a new registration must be filed accompanied by
16 required financial reports, and in all instances where
17 re-registration is required, submitted, and allowed, the new
18 re-registration materials must be filed, accompanied by a
19 re-registration fee of $200.
20 (c) If a person or trustee fails to register or maintain
21 registration of a trust or organization or fails to file
22 reports as provided in this Act Section, the person or
23 trustee is subject to injunction, to removal, to account, and
24 to appropriate other relief before a court of competent
25 jurisdiction exercising chancery jurisdiction. In the event
26 of such action, the court may shall impose, as an additional
27 surcharge, a civil penalty of not less that $500 nor more
28 than $1,000 against the organization or trust estate that
29 failed any trustee or other person who fails to register or
30 to maintain a registration required under this Act. The
31 collected penalty shall be used for charitable trust
32 enforcement and for providing charitable trust information to
33 the public.
34 (Source: P.A. 90-469, eff. 8-17-97.)
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1 (760 ILCS 55/7) (from Ch. 14, par. 57)
2 Sec. 7. (a) Except as otherwise provided, every trustee
3 subject to this Act shall, in addition to filing copies of
4 the instruments previously required, file with the Attorney
5 General periodic annual written reports under oath, setting
6 forth information as to the nature of the assets held for
7 charitable purposes and the administration thereof by the
8 trustee, in accordance with rules and regulations of the
9 Attorney General.
10 (b) The Attorney General shall make rules and
11 regulations as to the time for filing reports, the contents
12 thereof, and the manner of executing and filing them. He may
13 classify trusts and other relationships concerning property
14 held for a charitable purpose as to purpose, nature of
15 assets, duration of the trust or other relationship, amount
16 of assets, amounts to be devoted to charitable purposes,
17 nature of trustee, or otherwise, and may establish different
18 rules for the different classes as to time and nature of the
19 reports required to the ends (1) that he shall receive
20 reasonably current, annual reports as to all charitable
21 trusts or other relationships of a similar nature, which will
22 enable him to ascertain whether they are being properly
23 administered, and (2) that periodic reports shall not
24 unreasonably add to the expense of the administration of
25 charitable trusts and similar relationships. The Attorney
26 General may suspend the filing of reports as to a particular
27 charitable trust or relationship for a reasonable,
28 specifically designated time upon written application of the
29 trustee filed with the Attorney General and after the
30 Attorney General has filed in the register of charitable
31 trusts a written statement that the interests of the
32 beneficiaries will not be prejudiced thereby and that
33 periodic reports are not required for proper supervision by
34 his office.
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1 (c) A copy of an account filed by the trustee in any
2 court having jurisdiction of the trust or other relationship,
3 if the account has been approved by the court in which it was
4 filed and notice given to the Attorney General as an
5 interested party, may be filed as a report required by this
6 Section.
7 (d) The first report for a trust or similar relationship
8 hereafter established, unless the filing thereof is suspended
9 as herein provided, shall be filed not later than one year
10 after any part of the income or principal is authorized or
11 required to be applied to a charitable purpose. If any part
12 of the income or principal of a trust previously established
13 is authorized or required to be applied to a charitable
14 purpose at the time this Act takes effect, the first report,
15 unless the filing thereof is suspended, shall be filed within
16 6 months after the effective date of this Act. In addition,
17 every trustee registered hereunder that received more than
18 $25,000 $15,000 in revenue during a trust fiscal year or has
19 possession of more than $25,000 $15,000 of assets at any time
20 during a fiscal year shall file an annual financial report
21 within 6 months of the close of the trust's or organization's
22 fiscal year, and if a calendar year the report shall be due
23 on each June 30 of the following year. Every trustee
24 registered hereunder that did not receive more than $25,000
25 $15,000 in revenue or hold more than $25,000 $15,000 in
26 assets during a fiscal year shall file only a simplified
27 summary financial statement disclosing only the gross
28 receipts, total disbursements, and assets on hand at the end
29 of the year, on forms prescribed by the Attorney General.
30 (e) The periodic reporting provisions of this Act do not
31 apply to any trustee of a trust which is the subject matter
32 of an adversary proceeding pending in the circuit court in
33 this State. However, upon commencement of the proceeding the
34 trustee shall file a report with the Attorney General
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1 informing him of that fact together with the title and number
2 of the cause and the name of the court. Upon entry of final
3 judgment in the cause the trustee shall in like manner report
4 that fact to the Attorney General and fully account for all
5 periods of suspension.
6 (f) The Attorney General in his discretion may, pursuant
7 to rules and regulations promulgated by the Attorney General,
8 accept executed copies of federal Internal Revenue returns
9 and reports as a portion of the annual reporting. The report
10 shall include a statement of any changes in purpose or any
11 other information required to be contained in the
12 registration form filed on behalf of the organization. The
13 report shall be signed under penalty of perjury by the
14 president and the chief fiscal officer of any corporate
15 organization or by 2 trustees if not a corporation. One
16 signature shall be accepted if there is only one officer or
17 trustee.
18 (g) The Attorney General shall cancel the registration
19 of any trust or organization that wilfully fails to comply
20 with subsections (a), (b), (c) or (d) of this Section within
21 the time prescribed, and the assets of the organization may
22 through court proceedings be collected, debts paid and
23 proceeds distributed under court supervision to other
24 charitable purposes upon an action filed by the Attorney
25 General as law and equity allow. Upon timely written
26 request, the due date for filing may be extended by the
27 Attorney General for a period of 60 days. Notice of
28 registration cancellation shall be mailed by regular mail to
29 the registrant at the registration file address or to its
30 registered agent or president 21 days before the effective
31 date of the cancellation. Reports submitted after
32 registration is canceled shall require reregistration.
33 (h) Every trustee registered hereunder that received in
34 any fiscal year more than $15,000 in revenue or held more
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1 than $15,000 in assets shall pay a fee of $15 along with each
2 annual financial report filed pursuant to this Act. If an
3 annual report is not timely filed, a late filing fee of an
4 additional $100 is imposed and shall be paid as a condition
5 of filing a late report. Reports submitted without the
6 proper fee shall not be accepted for filing.
7 (Source: P.A. 90-469, eff. 8-17-97.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.