State of Illinois
92nd General Assembly
Legislation

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92_HB4404

 
                                               LRB9213688ACsb

 1        AN ACT concerning charities.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Solicitation for Charity Act  is  amended
 5    by changing Section 1 as follows:

 6        (225 ILCS 460/1) (from Ch. 23, par. 5101)
 7        Sec.  1.  The following words and phrases as used in this
 8    Act shall have the  following  meanings  unless  a  different
 9    meaning is required by the context.
10        (a)  "Charitable     organization."    Any    benevolent,
11    philanthropic,  patriotic,  or  eleemosynary  person  or  one
12    purporting to be such which solicits and collects  funds  for
13    charitable  purposes and includes each local, county, or area
14    division within this State of such  charitable  organization,
15    provided  such  local,  county or area division has authority
16    and discretion to disburse funds or property  otherwise  than
17    by transfer to any parent organization.
18        (b)  "Contribution." The promise or grant of any money or
19    property  of any kind or value, including the promise to pay,
20    except  payments  by  union  members  of   an   organization.
21    Reference to the dollar amount of "contributions" in this Act
22    means  in  the  case  of  promises  to  pay,  or payments for
23    merchandise or rights of any other description, the value  of
24    the  total  amount  promised  to  be  paid  or  paid for such
25    merchandise or rights and not  merely  that  portion  of  the
26    purchase  price  to  be  applied  to  a  charitable  purpose.
27    Contribution shall not include (1) the proceeds from the sale
28    of  admission tickets by any not-for-profit music or dramatic
29    arts organization which establishes, by  such  proof  as  the
30    Attorney  General  may  require,  that  it  has  received  an
31    exemption  under  Section  501(c)(3)  of the Internal Revenue
 
                            -2-                LRB9213688ACsb
 1    Code and which is organized and operated for the presentation
 2    of live public performances of musical or theatrical works on
 3    a regular basis or (2) money or property for which the  payor
 4    would not be entitled to a deduction for a contribution to an
 5    organization   qualified   under  Section  501(c)(3)  of  the
 6    Internal Revenue Code. For purposes of this subsection, union
 7    member  dues  and  donated  services  shall  not  be   deemed
 8    contributions.
 9        (c)  "Person."   Any   individual,  organization,  group,
10    association,   partnership,   corporation,   trust   or   any
11    combination of them.
12        (d)  "Professional  fund  raiser."  Any  person  who  for
13    compensation or other consideration,  conducts,  manages,  or
14    carries  on  any solicitation drive or campaign in this State
15    or from this State or on behalf of a charitable  organization
16    residing  within  this  State  for  the purpose of soliciting
17    contributions for or on behalf of any charitable organization
18    or any other person, or who engages in the  business  of,  or
19    holds  himself  out to persons in this State as independently
20    engaged in the business of soliciting contributions for  such
21    purposes.  A  bona fide director, officer, employee or unpaid
22    volunteer of a charitable organization shall not be deemed  a
23    professional fund raiser unless the person is in a management
24    position and the majority of the individual's salary or other
25    compensation is computed on a percentage basis of funds to be
26    raised, or actually raised.
27        (e)  "Professional  fund raising consultant."  Any person
28    who is retained by a charitable organization or trustee for a
29    fixed fee or rate that is not computed  on  a  percentage  of
30    funds  to  be  raised,  or  actually  raised, under a written
31    agreement,  to  only  plan,  advise,  consult,   or   prepare
32    materials  for a solicitation of contributions in this State,
33    but who does not manage, conduct or carry  on  a  fundraising
34    campaign  and  who  does not solicit contributions or employ,
 
                            -3-                LRB9213688ACsb
 1    procure,  or  engage  any  compensated  person   to   solicit
 2    contributions  and  who  does not at any time have custody or
 3    control of contributions.  A volunteer, employee or  salaried
 4    officer of a charitable organization or trustee maintaining a
 5    permanent  establishment  or  office  in  this State is not a
 6    professional fundraising consultant.  An attorney, investment
 7    counselor, or banker who advises an  individual,  corporation
 8    or  association  to  make  a charitable contribution is not a
 9    professional  fundraising  consultant  as  a  result  of  the
10    advice.
11        (f)  "Charitable purpose."  Any  charitable,  benevolent,
12    philanthropic, patriotic, or eleemosynary purpose.
13        (g)  "Charitable  Trust"  means  any relationship whereby
14    property is held by a person for a charitable purpose.
15        (h)  "Education Program Service" means any activity which
16    provides information to the public of a nature  that  is  not
17    commonly known or facts which are not universally regarded as
18    obvious  or  as established by common understanding and which
19    informs the public of what  it  can  or  should  do  about  a
20    particular issue.
21        (i)  "Primary  Program Service" means the program service
22    upon which an  organization  spends  more  than  50%  of  its
23    program   service   funds   or  the  program  activity  which
24    represents the largest expenditure of  funds  in  the  fiscal
25    period.
26        (j)  "Professional  solicitor"  means  any natural person
27    who  is  employed  or  retained   for   compensation   by   a
28    professional   fund   raiser  to  solicit  contributions  for
29    charitable purposes from persons in this State or  from  this
30    State  or  on  behalf  of  a charitable organization residing
31    within this State.
32        (k)  "Program  Service   Activity"   means   the   actual
33    charitable  program  activities  of a charitable organization
34    for which it expends its resources.
 
                            -4-                LRB9213688ACsb
 1        (l)  "Program Service  Expense"  means  the  expenses  of
 2    charitable  program  activity  and not management expenses or
 3    fund  raising  expenses.   In  determining  Program   Service
 4    Expense,  management  and  fund  raising  expenses may not be
 5    included.
 6        (m)  "Public Safety  Personnel  Organization"  means  any
 7    person  who  uses  any  of  the  words  "officer",  "police",
 8    "policeman",   "policemen",   "troopers",   "sheriff",   "law
 9    enforcement",  "fireman",  "firemen", "paramedic", or similar
10    words in its name or in conjunction with solicitations, or in
11    the title or  name  of  a  magazine,  newspaper,  periodical,
12    advertisement  book,  or  any  other  medium of electronic or
13    print publication, and  is  not  a  governmental  entity.  No
14    organization  may  be  a Public Safety Personnel Organization
15    unless 80% or more of its  voting  members  or  trustees  are
16    active, retired, or disabled police officers, peace officers,
17    firemen,  fire  fighters,  emergency  medical  technicians  -
18    ambulance,  emergency  medical  technicians  -  intermediate,
19    emergency medical technicians - paramedic, ambulance drivers,
20    or other medical assistance or first aid personnel.
21        (m-5)  "Public    Safety   Personnel"   includes   police
22    officers, peace officers, firemen, fire  fighters,  emergency
23    medical    technicians   -   ambulance,   emergency   medical
24    technicians - intermediate, emergency medical  technicians  -
25    paramedic, ambulance drivers, and other medical assistance or
26    first aid personnel.
27        (n)  "Trustee"  means  any  person,  individual, group of
28    individuals,  association,  corporation,   not   for   profit
29    corporation,  or  other  legal entity holding property for or
30    solicited  for  any  charitable  purpose;  or  any   officer,
31    director,  executive director or other controlling persons of
32    a corporation soliciting or holding property for a charitable
33    purpose.
34    (Source: P.A. 91-301, eff. 7-29-99.)

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