State of Illinois
91st General Assembly
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91_SB0392eng

 
SB392 Engrossed                                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
 
SB392 Engrossed             -6-                LRB9101147ACpk
 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
 
SB392 Engrossed             -11-               LRB9101147ACpk
 1        $150,000, if it is not required to submit a report  under
 2        subsection  (a)  of  this  Section,  shall file a written
 3        report with the Attorney General upon forms prescribed by
 4        him, on or before June 30 of each year if its  books  are
 5        kept  on  a  calendar basis, or within 6 months after the
 6        close of its fiscal year if  its  books  are  kept  on  a
 7        fiscal  year  basis,  which  shall  include  a  financial
 8        statement  covering  the  immediately  preceding 12-month
 9        period of  operation  limited  to  a  statement  of  such
10        organization's  gross  receipts  from  contributions, the
11        gross  amount   expended   for   charitable   educational
12        programs,  other charitable programs, management expense,
13        and fund raising expenses including a separate  statement
14        of the cost of any goods, services or admissions supplied
15        as  part of its solicitations, and the disposition of the
16        net proceeds from contributions,  including  compensation
17        paid  to trustees, consistent with forms furnished by the
18        Attorney General.   Such  report  shall  also  include  a
19        statement  of  any changes in the information required to
20        be contained in the registration form filed on behalf  of
21        such  organization.  The  report  shall  be signed by the
22        president or  other  authorized  officer  and  the  chief
23        fiscal officer of the organization who shall certify that
24        the  statements  therein are true and correct to the best
25        of their 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
 
SB392 Engrossed             -15-               LRB9101147ACpk
 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
 
SB392 Engrossed             -17-               LRB9101147ACpk
 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
 
SB392 Engrossed             -19-               LRB9101147ACpk
 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,
 
SB392 Engrossed             -20-               LRB9101147ACpk
 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.)
 
SB392 Engrossed             -21-               LRB9101147ACpk
 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.
 
SB392 Engrossed             -22-               LRB9101147ACpk
 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
 
SB392 Engrossed             -23-               LRB9101147ACpk
 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
 
SB392 Engrossed             -24-               LRB9101147ACpk
 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.

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