State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0444

HB2176 Enrolled                                LRB9101244ACcd

    AN  ACT  relating   to   charitable   organizations   and
activities, amending named Acts.

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

    Section 5.  The Solicitation for Charity Act  is  amended
by changing Sections 2, 3, 4, 6, and 23 as follows:

    (225 ILCS 460/2) (from Ch. 23, par. 5102)
    Sec. 2. Registration; rules; penalties.
    (a)  Every  charitable  organization, except as otherwise
provided in Section 3 of this Act, which solicits or  intends
to  solicit contributions from persons in this State or which
is located in this State,  by  any  means  whatsoever  shall,
prior  to  any  solicitation,  file with the Attorney General
upon forms  prescribed  by  him,  a  registration  statement,
accompanied  by  a  registration  fee of $15, which statement
shall include the following certified information:
         1.  The name of the organization  and  the  name  or
    names under which it intends to solicit contributions.
         2.    The  names  and  addresses  of  the  officers,
    directors, trustees, and chief executive officer  of  the
    organization.
         3.   The  addresses  of  the  organization  and  the
    addresses   of   any   offices  in  this  State.  If  the
    organization does not maintain a  principal  office,  the
    name  and  address  of  the  person having custody of its
    financial records.
         4.  Where and  when  the  organization  was  legally
    established,  the  form  of  its organization and its tax
    exempt status.
         5.  The  purpose  for  which  the  organization   is
    organized  and  the  purpose  or  purposes  for which the
    contributions to be solicited will be used.
         6.  The  date  on  which  the  fiscal  year  of  the
    organization ends.
         7.  Whether the organization is  authorized  by  any
    other governmental authority to solicit contributions and
    whether it is or has ever been enjoined by any court from
    soliciting contributions.
         8.  The names and addresses of any professional fund
    raisers who are acting or have agreed to act on behalf of
    the organization.
         9.  Methods by which solicitation will be made.
         10.  Copies    of   contracts   between   charitable
    organizations and professional fund raisers  relating  to
    financial  compensation  or  profit  to be derived by the
    professional fund raisers. Where  any  such  contract  is
    executed  after  filing of registration statement, a copy
    thereof shall be filed within 10  days  of  the  date  of
    execution.
         11.  Board,   group,   or  individual  having  final
    discretion  as   to   the   distribution   and   use   of
    contributions received.
    (b)  The  registration  statement  shall be signed by the
president or other authorized officer and  the  chief  fiscal
officer of the organization.
    (c)  Such  registration  shall remain in effect unless it
is either cancelled as provided in this Act or  withdrawn  by
the organization.
    (d)  Every   registered  organization  shall  notify  the
Attorney  General  within  10  days  of  any  change  in  the
information required to be  furnished  by  such  organization
under  paragraphs  1  through  11  of subdivision (a) of this
Section.
    (e)  In no event shall a  registration  of  a  charitable
organization  continue,  or be continued, in effect after the
date such organization should have filed, but failed to file,
an annual report  in  accordance  with  the  requirements  of
Section  4  of  this  Act, and such organization shall not be
eligible to file a new registration until it shall have filed
the required annual report with the Attorney General. If such
report is subsequently filed and  accepted  by  the  Attorney
General  such  organization may file a new registration. If a
person, trustee, or organization fails to timely register  or
maintain  a  registration  of  a  trust  or  organization  as
required  by  this Act or if its registration is cancelled as
provided in this Act,  and  if  that  trust  or  organization
remains in existence and by law is required to be registered,
in order to re-register or file a late registration a current
registration statement must be filed accompanied by financial
reports  in  the form required herein for all past years.  In
all instances where re-registration and late registration are
allowed,  the  new  registration  materials  must  be  filed,
accompanied by a penalty registration fee of $200.
    (f)  Subject to reasonable rules and regulations  adopted
by   the   Attorney   General,   the  register,  registration
statements,    annual    reports,    financial    statements,
professional fund raisers' contracts, bonds, applications for
registration  and  re-registration,   and   other   documents
required  to be filed with the Attorney General shall be open
to public inspection.
    Every person subject to this Act shall maintain  accurate
and detailed books and records at the principal office of the
organization  to provide the information required herein. All
such books and records shall be open  to  inspection  at  all
reasonable   times  by  the  Attorney  General  or  his  duly
authorized representative.
    (g)  Where any  local,  county  or  area  division  of  a
charitable  organization  is  supervised  and controlled by a
superior or parent organization, incorporated,  qualified  to
do business, or doing business within this State, such local,
county  or  area  division  shall not be required to register
under this Section if the  superior  or  parent  organization
files a registration statement on behalf of the local, county
or  area  division  in  addition  to  or  as  part of its own
registration statement. Where a  registration  statement  has
been  filed  by a superior or parent organization as provided
in Section 2(g) of this Act, it shall file the annual  report
required  under Section 4 of this Act on behalf of the local,
county or area division in addition to or as part of its  own
report, but the accounting information required under Section
4  of  this  Act  shall  be  set  forth separately and not in
consolidated form with respect to every local, county or area
division which raises or expends more than $4,000.
    (h)  The Attorney General may make rules of procedure and
regulations necessary for the  administration  of  this  Act.
Copies  of all such rules of procedure and regulations and of
all changes therein, duly certified by the Attorney  General,
shall be filed in the office of the Secretary of State.
    (i)  If  a  person,  organization,  or  trustee  fails to
register or if registration of a  trust  or  organization  is
cancelled  as  provided in this Act, the person, organization
or trustee is subject to injunction, to removal, to  account,
and  to  appropriate  other  relief  before the circuit court
exercising chancery jurisdiction. In addition  to  any  other
relief  granted  under this Act, the court may shall impose a
civil penalty of not less than  $500  nor  more  than  $1,000
against the organization or trust estate that failed each and
every trustee, organization, and person who fails to register
or failed who fails to maintain a registration required under
this  Act.   The  collected  penalty  funds shall be used for
charitable trust enforcement  and  for  providing  charitable
trust information to the public.
(Source: P.A. 90-469, eff. 8-17-97.)
    (225 ILCS 460/3) (from Ch. 23, par. 5103)
    Sec. 3.  Exemptions.
    (a)  Upon  initial  filing  of  a  registration statement
pursuant to Section 2 of this Act  and  notification  by  the
Attorney General of his determination that the organizational
purposes  or  circumstances  specified  in this paragraph for
exemption are actual  and  genuine,  the  following  entities
shall be exempt from all the report filing provisions of this
Act,  except  for  the requirements set forth in Section 2 of
this Act:
         1.   A   corporation   sole   or   other   religious
    corporation,   trust   or  organization  incorporated  or
    established for religious purposes, nor to any agency  or
    organization  incorporated or established for charitable,
    hospital  or  educational   purposes   and   engaged   in
    effectuating  one  or  more  of  such  purposes,  that is
    affiliated with, operated by, or supervised or controlled
    by a corporation sole  or  other  religious  corporation,
    trust  or  organization  incorporated  or established for
    religious purposes, nor to other  religious  agencies  or
    organizations which serve religion by the preservation of
    religious   rights   and   freedom  from  persecution  or
    prejudice or by fostering religion, including  the  moral
    and ethical aspects of a particular religious faith.
         2.  Any   charitable  organization  which  does  not
    intend to solicit  and  receive  and  does  not  actually
    receive  contributions in excess of $15,000 during any 12
    month period ending December 31 of any year.  However, if
    the  gross  contributions  received  by  such  charitable
    organization during any 12 month period  ending  December
    31  of  any  year shall be in excess of $15,000, it shall
    file  reports  as  required  under  this  Act   and   the
    provisions of this Act shall apply.
    (b)  The  following  persons  shall  not  be  required to
register with the Attorney General:
         1.  The University of  Illinois,  Southern  Illinois
    University,  Eastern  Illinois University, Illinois State
    Normal University, Northern Illinois University,  Western
    Illinois  University,  all  educational institutions that
    are recognized by the State Board of  Education  or  that
    are  accredited  by a regional accrediting association or
    by  an  organization   affiliated   with   the   National
    Commission  on  Accrediting,  any  foundation  having  an
    established  identity  with  any  of  the  aforementioned
    educational    institutions,    any   other   educational
    institution confining its solicitation  of  contributions
    to  its  student  body, alumni, faculty and trustees, and
    their families, or a library established under  the  laws
    of  this State, provided that the annual financial report
    of such institution or library shall be  filed  with  the
    State   Board  of  Education,  Governor,  Illinois  State
    Library,  County  Library  Board  or  County  Board,   as
    provided by law.
         2.  Fraternal,   patriotic,   social,   educational,
    alumni   organizations   and  historical  societies  when
    solicitation  of  contributions  is  confined  to   their
    membership.  This  exemption  shall  be  extended  to any
    subsidiary of a parent or superior organization  exempted
    by  Sub-paragraph 2 of Paragraph (b) of Section 3 of this
    Act where such solicitation is confined to the membership
    of the subsidiary, parent or superior organization.
         3.  Persons requesting  any  contributions  for  the
    relief or benefit of any individual, specified by name at
    the  time  of  the  solicitation,  if  the  contributions
    collected are turned over to the named beneficiary, first
    deducting  reasonable  expenses for costs of banquets, or
    social gatherings, if  any,  provided  all  fund  raising
    functions  are  carried  on  by  persons  who are unpaid,
    directly or indirectly, for such services.
         4.  Any  bona  fide  union,  bona   fide   political
    organization  or  bona  fide  political action committee,
    which does not solicit funds for a charitable purpose.
         5.  Any   charitable   organization   receiving   an
    allocation from an incorporated community chest or united
    fund, provided such chest or fund is complying  with  the
    provisions  of  this  Act  relating  to  registration and
    filing of annual reports with the Attorney  General,  and
    provided  such organization does not actually receive, in
    addition to such allocation, contributions in  excess  of
    $4,000 during any 12 month period ending June 30th of any
    year,  and  provided  further  that  all the fund raising
    functions of such organization are carried on by  persons
    who  are  unpaid for such services. However, if the gross
    contributions other than such allocation received by such
    charitable organization during any 12 month period ending
    June 30th of any year shall be in excess  of  $4,000,  it
    shall  within  30  days  after  the  date  it  shall have
    received such contributions in excess of $4,000  register
    with the Attorney General as required by Section 2.
         6.  A  bona  fide organization of volunteer firemen,
    or  a  bona  fide  auxiliary   or   affiliate   of   such
    organization,  provided  all  its fund raising activities
    are carried on by members of such an organization  or  an
    affiliate   thereof   and   such   members   receive   no
    compensation, directly or indirectly, therefor.
         7.  Any  charitable organization operating a nursery
    for infants awaiting adoption providing that all its fund
    raising activities are carried on by members of  such  an
    organization  or  an  affiliate  thereof and such members
    receive no compensation, directly or indirectly therefor.
         8.  Any  corporation  established  by  the   Federal
    Congress that is required by federal law to submit annual
    reports of its activities to Congress containing itemized
    accounts  of  all  receipts  and expenditures after being
    duly audited.
         9.  Any boys' club  which  is  affiliated  with  the
    Boys'   Club  of  America,  a  corporation  chartered  by
    Congress;  provided,  however,  that  such  an  affiliate
    properly files the reports required by the Boys' Club  of
    America and that the Boys' Club of America files with the
    Government  of  the United States the reports required by
    its federal charter.
         10.  Any   veterans   organization   chartered    or
    incorporated   under   federal   law   and  any  veterans
    organization which is affiliated with, and recognized  in
    the   bylaws   of,   a   congressionally   chartered   or
    incorporated  veterans  organization;  provided, however,
    that the affiliate properly files the reports required by
    the congressionally chartered  or  incorporated  veterans
    organization,   that  the  congressionally  chartered  or
    incorporated  veterans  organization   files   with   the
    government  of  the United States the reports required by
    its federal charter, and that copies  of  such  federally
    required reports are filed with the Attorney General.
         11.  Any   parent-teacher   organization   that   is
    controlled  by teachers and parents of children attending
    a particular public  or  private  school  for  which  the
    organization  is named and solicits contributions for the
    benefit of that particular school; provided that:
              (i)  the school is specified  by  name  at  the
         time the solicitation is made;
              (ii)  all  of the contributions are turned over
         to the  school,  after  first  deducting  reasonable
         expenses    for   fundraising   and   parent-teacher
         activities;
              (iii)  all fundraising functions are carried on
         by persons who are  not  paid,  either  directly  or
         indirectly, for their fundraising services;
              (iv)  the  total contributions, less reasonable
         fundraising expenses, do not exceed $50,000  in  any
         calendar year;
              (v)  the  organization  provides  the school at
         least annually with a  complete  accounting  of  all
         contributions received; and
              (vi)  the   governing   board   of  the  school
         annually certifies to the Attorney General,  if  the
         Attorney  General makes a request for certification,
         that the parent-teacher  organization  has  provided
         the  school  with  a  full  accounting  and that the
         organization has provided benefits and contributions
         to the school.
(Source: P.A. 90-469, eff. 8-17-97.)

    (225 ILCS 460/4) (from Ch. 23, par. 5104)
    Sec. 4.  (a)  Every  charitable  organization  registered
pursuant  to Section 2 of this Act which shall receive in any
12  month  period  ending  upon  its  established  fiscal  or
calendar year contributions in excess of $150,000  and  every
charitable  organization whose fund raising functions are not
carried on solely by  staff  employees  or  persons  who  are
unpaid  for  such services, if the organization shall receive
in any 12 month period ending upon its established fiscal  or
calendar  year contributions in excess of $25,000, shall file
a  written  report  with  the  Attorney  General  upon  forms
prescribed by him, on or before June 30 of each year  if  its
books  are kept on a calendar basis, or within 6 months after
the close of its fiscal year if  its  books  are  kept  on  a
fiscal  year  basis,  which  written  report  shall include a
financial statement covering  the  immediately  preceding  12
month  period  of  operation.  Such financial statement shall
include a balance sheet and statement of income and  expense,
and  shall be consistent with forms furnished by the Attorney
General clearly setting forth the following:  gross  receipts
and  gross  income  from  all sources, broken down into total
receipts and income from each separate  solicitation  project
or source; cost of administration; cost of solicitation; cost
of  programs  designed to inform or educate the public; funds
or properties transferred out of this State, with explanation
as  to  recipient   and   purpose;   cost   of   fundraising;
compensation paid to trustees; and total net amount disbursed
or dedicated for each major purpose, charitable or otherwise.
Such  report shall also include a statement of any changes in
the information required to be contained in the  registration
form  filed on behalf of such organization.  The report shall
be signed by the president or other  authorized  officer  and
the  chief  fiscal  officer  of  the  organization  who shall
certify that the statements therein are true and  correct  to
the  best  of their knowledge, and shall be accompanied by an
opinion signed by an independent certified public  accountant
that  the  financial  statement therein fairly represents the
financial operations of the organization in sufficient detail
to permit public evaluation of its operations.  Said  opinion
may be relied upon by the Attorney General.
    (b)  Every  organization registered pursuant to Section 2
of this Act which shall receive in any 12 month period ending
upon its established fiscal or  calendar  year  of  any  year
contributions:
         (1)  in  excess  of  $15,000,  but  not in excess of
    $25,000,  during  a  fiscal  year  shall  file   only   a
    simplified  summary  financial  statement disclosing only
    the gross receipts, total disbursements,  and  assets  on
    hand  at  the  end of the year on forms prescribed by the
    Attorney General; or
         (2)  in excess of $25,000,  but  not  in  excess  of
    $150,000,  if it is not required to submit a report under
    subsection (a) of this  Section,  shall  file  a  written
    report with the Attorney General upon forms prescribed by
    him,  on  or before June 30 of each year if its books are
    kept on a calendar basis, or within 6  months  after  the
    close  of  its  fiscal  year  if  its books are kept on a
    fiscal  year  basis,  which  shall  include  a  financial
    statement covering  the  immediately  preceding  12-month
    period  of  operation  limited  to  a  statement  of such
    organization's gross  receipts  from  contributions,  the
    gross   amount   expended   for   charitable  educational
    programs, other charitable programs, management  expense,
    and  fund raising expenses including a separate statement
    of the cost of any goods, services or admissions supplied
    as part of its solicitations, and the disposition of  the
    net  proceeds  from contributions, including compensation
    paid to trustees, consistent with forms furnished by  the
    Attorney  General.    Such  report  shall  also include a
    statement of any changes in the information  required  to
    be  contained in the registration form filed on behalf of
    such organization. The report  shall  be  signed  by  the
    president  or  other  authorized  officer  and  the chief
    fiscal officer of the organization who shall certify that
    the statements therein are true and correct to  the  best
    of their knowledge.
    (c)  For  any fiscal or calendar year of any organization
registered pursuant to Section 2 of this Act  in  which  such
organization   would   have  been  exempt  from  registration
pursuant to Section 3 of this Act  if  it  had  not  been  so
registered,  or  in  which  it  did  not  solicit  or receive
contributions, such organization shall  file,  on  or  before
June  30  of  each  year  if its books are kept on a calendar
basis, or within 6 months after the close of its fiscal  year
if  its books are kept on a fiscal year basis, instead of the
reports required by subdivisions (a) or (b) of this  Section,
a  statement  certified  under  penalty  of  perjury  by  its
president  and chief fiscal officer stating the exemption and
the facts upon which it is based or  that  such  organization
did not solicit or receive contributions in such fiscal year.
The  statement  shall also include a statement of any changes
in  the  information  required  to  be   contained   in   the
registration form filed on behalf of such organization.
    (d)  As an alternative means of satisfying the duties and
obligations  otherwise  imposed by this Section, any veterans
organization chartered or incorporated under federal law  and
any  veterans  organization  which  is  affiliated  with, and
recognized in the bylaws of, a congressionally  chartered  or
incorporated  organization  may, at its option, annually file
with the Attorney General the following documents:
         (1)  A copy of its  Form  990,  as  filed  with  the
    Internal Revenue Service.
         (2)  Copies  of  any reports required to be filed by
    the  affiliate  with  the  congressionally  chartered  or
    incorporated veterans organization, as well as copies  of
    any  reports  filed  by  the congressionally chartered or
    incorporated veterans organization with the government of
    the United States pursuant to federal law.
         (3)  Copies of all contracts  entered  into  by  the
    congressionally   chartered   or   incorporated  veterans
    organization or its affiliate  for  purposes  of  raising
    funds  in  this  State,  such copies to be filed with the
    Attorney General no more than 30 days after execution  of
    the contracts.
    (e)  As  an  alternative  means  of satisfying all of the
duties and obligations otherwise imposed by this Section, any
person,  pursuant   to   a   contract   with   a   charitable
organization,   a   veterans  organization  or  an  affiliate
described or referred to in  subsection  (d),  who  receives,
collects,   holds   or   transports   as  the  agent  of  the
organization or affiliate for purposes of resale any used  or
second  hand  personal property, including but not limited to
household  goods,  furniture  or  clothing  donated  to   the
organization  or  affiliate may, at its option, annually file
with  the   Attorney   General   the   following   documents,
accompanied by an annual filing fee of $15:
         (1)  A  notarized  report  including  the  number of
    donations of personal property it has received on  behalf
    of  the charitable organization, veterans organization or
    affiliate during the proceeding year.   For  purposes  of
    this report, the number of donations of personal property
    shall  refer  to  the  number  of  stops  or pickups made
    regardless of the number of items received at  each  stop
    or  pickup.   The  report  may  cover the person's fiscal
    year, in which case it shall be filed with  the  Attorney
    General  no  later  than  90 days after the close of that
    fiscal year.
         (2)  All contracts with the charitable organization,
    veterans organization or affiliate under which the person
    has acted as an agent for the purposes listed above.
         (3)  All contracts by which the person agreed to pay
    the charitable  organization,  veterans  organization  or
    affiliate  a  fixed  amount for, or a fixed percentage of
    the value of,  each  donation  of  used  or  second  hand
    personal property.  Copies of all such contracts shall be
    filed no later than 30 days after they are executed.
    (f)  The  Attorney General may seek appropriate equitable
relief from  a  court  or,  in  his  discretion,  cancel  the
registration  of  any organization which fails to comply with
subdivision (a), (b) or (c) of this Section within  the  time
therein  prescribed,  or  fails  to  furnish  such additional
information as is requested by the  Attorney  General  within
the  required  time;  except that the time may be extended by
the Attorney General for a period not to exceed 60 days  upon
a  timely  written request and for good cause stated.  Unless
otherwise stated herein, the Attorney General shall, by rule,
set  forth  the  standards  used  to  determine   whether   a
registration   shall  be  cancelled  as  authorized  by  this
subsection.  Such standards shall be stated as precisely  and
clearly   as  practicable,  to  inform  fully  those  persons
affected.  Notice of such cancellation shall be mailed to the
registrant  at  least  15  days  before  the  effective  date
thereof.
    (g)  The Attorney General in his discretion may, pursuant
to rule, accept executed copies of federal  Internal  Revenue
returns  and  reports  as  a  portion of the foregoing annual
reporting in the interest  of  minimizing  paperwork,  except
there  shall  be  no substitute for the independent certified
public accountant audit opinion required by this Act.
    (h)  The   Attorney   General   after    canceling    the
registration  of  any  trust  or  organization which fails to
comply with this Section within the time  therein  prescribed
may  by  court  proceedings, in addition to all other relief,
seek to collect the assets and distribute  such  under  court
supervision to other charitable purposes.
    (i)  Every  trustee, person, and organization required to
file an annual report shall pay a filing fee of $15 with each
annual financial report filed pursuant to this Section.  If a
proper and complete annual report is not timely filed, a late
filing fee of an additional $100 is imposed and shall be paid
as a condition of filing a late  report.   Reports  submitted
without  the  proper  fee  shall  not be accepted for filing.
Payment of the late filing fee and acceptance by the Attorney
General shall both be conditions of  filing  a  late  report.
All  late  filing  fees  shall  be used to provide charitable
trust  enforcement  and  dissemination  of  charitable  trust
information to the  public  and  shall  be  maintained  in  a
separate  fund for such purpose known as the Illinois Charity
Bureau Fund.
    (j)  There is created hereby a separate special  fund  in
the State Treasury to be known as the Illinois Charity Bureau
Fund.   That  Fund shall be under the control of the Attorney
General, and the funds, fees, and penalties deposited therein
shall  be  used  by  the  Attorney  General  to  enforce  the
provisions  of  this  Act  and  to  gather  and   disseminate
information  about  charitable  trustees and organizations to
the public.
(Source: P.A. 89-626, eff. 8-9-96; 90-469, eff. 8-17-97.)

    (225 ILCS 460/6) (from Ch. 23, par. 5106)
    Sec. 6.  Professional fund raiser registration.
    (a) No person shall act as a professional fund raiser  or
allow  a  professional fund raiser entity he owns, manages or
controls to act for a  charitable  organization  required  to
register  pursuant  to  Section  2  of  this  Act, or for any
organization as described in Section 3 of this Act before  he
has  registered  himself  or  the  entity  with  the Attorney
General or after  the  expiration  or  cancellation  of  such
registration   or   any  renewal  thereof.  Applications  for
registration and re-registration shall be in  writing,  under
oath,  in  the  form  prescribed  by  the Attorney General. A
registration fee of $100 shall be paid with each registration
and   upon    each    re-registration.    Registration    and
re-registration  can  proceed  only  if all financial reports
have been filed in proper form and all fees have been paid in
full.  If the applicant intends to or does  take  control  or
possession  of  charitable  funds, the applicant shall at the
time of making application, file with, and have approved  by,
the  Attorney  General a bond in which the applicant shall be
the principal obligor, in the sum of  $10,000,  with  one  or
more corporate sureties licensed to do business in this State
whose  liability  in  the  aggregate will at least equal such
sum. The bond shall run to the Attorney General for  the  use
of the State and to any person who may have a cause of action
against  the  obligor  of  the  bond  for  any malfeasance or
misfeasance in the conduct of  such  solicitation;  provided,
that  the  aggregate  limit of liability of the surety to the
State and to all such persons shall, in no event, exceed  the
sum  of  such  bond.  Registration  or  re-registration  when
effected  shall  be  for  a  period  of  one  year, or a part
thereof, expiring on the 30th day of June, and may be renewed
upon written application, under oath, in the form  prescribed
by  the  Attorney  General  and  the  filing  of the bond for
additional one year periods. Every professional  fund  raiser
required  to  register  pursuant  to  this  Act shall file an
annual written report with the  Attorney  General  containing
such  information  as  he  may require by rule. Certification
shall  be  required   for   only   information   within   the
professional fund raiser's knowledge.
    (b)  Upon  filing  a  complete  registration statement, a
professional fund raiser shall be given a registration number
and  shall  be  considered  registered.   If  the   materials
submitted  are determined to be inaccurate or incomplete, the
Attorney General shall notify the professional fund raiser of
his findings and the defect  and  that  within  30  days  his
registration  will  be  cancelled  unless the defect is cured
within said time.
    (c)  Every professional fund raiser registered under this
Act who takes  possession  or  control  of  charitable  funds
directly,  indirectly,  or  through  an escrow shall submit a
full written accounting to the charitable organization of all
funds it or its agents collected on behalf of the  charitable
organization  during the 6 month period ended June 30 of each
year, and file a copy of the  accounting  with  the  Attorney
General.   The  accounting shall be in writing under oath and
be signed and made on forms as  prescribed  by  the  Attorney
General  and  shall be filed by the following September 30 of
each year; however, within the time prescribed, and  for good
cause, the Attorney General may grant a 60 day  extension  of
the due date.
    (d)  Every  professional  fund raiser registered pursuant
to this Act shall also file calendar year  written  financial
reports with the Attorney General containing such information
as  he  may  require,  on forms prescribed by him, as well as
separate financial reports for  each  separate  fund  raising
campaign  conducted.  The written report shall be filed under
oath on or before April 30 of the following calendar year and
be signed and verified under penalty of  perjury  within  the
time prescribed. An annual report fee of $25 shall be paid to
the  Attorney General with the filing of that report.  If the
report is not timely filed, a late filing  fee  shall  result
and  must  be paid prior to re-registration.  The late filing
fee shall be calculated at $200 for each and  every  separate
fundraising  campaign  conducted  during the report year. For
good cause, the Attorney General may grant a 30 day extension
of the due date, in which case a late filing fee shall not be
imposed until the expiration of the extension period.  A copy
of  the  report  shall  also  be  given  to  the   charitable
organization  by the due date of filing.  A professional fund
raiser shall only be required to verify information  actually
available  to  the professional fund raiser, but in any event
an annual report must be timely filed.
    (e)  No person convicted of a felony may  register  as  a
professional  fund  raiser,  and  no  person  convicted  of a
misdemeanor involving fiscal wrongdoing, breach of  fiduciary
duty   or   a  violation  of  this  Act  may  register  as  a
professional fund raiser for a period of  5  years  from  the
date  of  the  conviction  or  the date of termination of the
sentence or probation,  if  any,  whichever  is  later.  This
subsection  shall  not apply to charitable organizations that
have as their primary purpose the rehabilitation of  criminal
offenders,  the  reintegration  of  criminal  offenders  into
society,  the  improvement  of the criminal justice system or
the improvement of conditions within penal institutions.
    (f)  A professional fund raiser may not  cause  or  allow
independent  contractors  to  act on its behalf in soliciting
charitable contributions other than  registered  professional
solicitors.  A  professional  fund  raiser  must maintain the
names, addresses and social security numbers of  all  of  its
professional solicitors for a period of at least 2 years.
    (g)  Any  person who knowingly violates the provisions of
subsections (a), (e), and (f) of this Section is guilty of  a
Class  4  felony.   Any  person  who  fails after being given
notice of  delinquency  to  file  written  financial  reports
required  by subsections (c) and (d) of this Section which is
more than 2 months past its due date is guilty of a  Class  A
misdemeanor.
    (h)  Any  person  who  violates  any of the provisions of
this Section shall be subject to civil  penalties  of  $5,000
for  each  violation  and  shall  not  be entitled to keep or
receive fees, salaries, commissions or any compensation as  a
result  or  on  account  of the solicitations or fund raising
campaigns, and at the request of the Attorney General or  the
charitable  organization,  a  court  may  order  that such be
forfeited and paid toward and used for a  charitable  purpose
as  the  court in its discretion determines is appropriate or
placed in the Illinois Charity Bureau Fund.
(Source: P.A. 90-469, eff. 8-17-97.)

    (225 ILCS 460/23)
    Sec. 23.  Charitable Advisory  Council.   As  a  part  of
charitable  trust  enforcement  and public disclosure, a task
force composed of citizens chosen by the Attorney General  to
be  known  as  the  Attorney  General's  Charitable  Advisory
Council  shall  be  and is hereby formed for a 3-year period.
This  Advisory  Council  shall  study  issues  of  charitable
giving, volunteerism,  and  fundraising  in  this  State  and
specifically   shall   evaluate  and  study  the  concept  of
establishing a peer review rating  system  of  the  financial
reports and operations of charitable trusts and organizations
registered  in Illinois.  The ratings should seek to evaluate
the performance of those organizations in  terms  of  program
services delivered for each dollar spent.  The purpose of the
ratings  of  a  charity's  performance  is  to  provide those
performance ratings to the  donating  public.   The  Advisory
Council  shall  consider  and report as to the feasibility of
rating  all  charitable  organizations   registered   or   of
establishing  a  system  of  rating  only those seeking to be
rated and allowing those rated to represent the rating during
solicitations.  The  Advisory  Council  members  shall  serve
without  compensation, and the expenses of the Council may be
paid for out of the Illinois Charity Bureau Fund in an amount
not to exceed $10,000 per year and in the discretion  of  the
Attorney General.
(Source: P.A. 90-469, eff. 8-17-97.)

    Section  10.  The  Charitable  Trust  Act  is  amended by
changing Sections 5 and 7 as follows:

    (760 ILCS 55/5) (from Ch. 14, par. 55)
    Sec. 5.  Registration requirement.
    (a)  The Attorney General shall establish and maintain  a
register   of  trustees  subject  to  this  Act  and  of  the
particular trust or other relationship under which they  hold
property  for  charitable  purposes  and,  to that end, shall
conduct whatever investigation is necessary, and shall obtain
from public  records,  court  officers,  taxing  authorities,
trustees  and  other  sources, copies of instruments, reports
and records  and  whatever  information  is  needed  for  the
establishment and maintenance of the register.
    (b)  A   registration   statement  shall  be  signed  and
verified  under  penalty  of  perjury  by  2  officers  of  a
corporate charitable organization or by 2 trustees if  not  a
corporate  organization.   One  signature will be accepted if
there is only one officer or one trustee. A registration  fee
of  $15  shall  be paid with each initial registration.  If a
person,  trustee  or  organization  fails   to   maintain   a
registration  of  a trust or organization as required by this
Act, and its registration is cancelled as  provided  in  this
Act,  and  if that trust or organization remains in existence
and by  law  is  required  to  be  registered,  in  order  to
re-register,  a new registration must be filed accompanied by
required  financial  reports,  and  in  all  instances  where
re-registration is required, submitted, and allowed, the  new
re-registration  materials  must  be  filed, accompanied by a
re-registration fee of $200.
    (c)  If a person or trustee fails to register or maintain
registration of a trust or  organization  or  fails  to  file
reports  as  provided  in  this  Act  Section,  the person or
trustee is subject to injunction, to removal, to account, and
to appropriate other  relief  before  a  court  of  competent
jurisdiction  exercising  chancery jurisdiction. In the event
of such action, the court may shall impose, as an  additional
surcharge,  a  civil  penalty  of not less that $500 nor more
than $1,000 against the organization  or  trust  estate  that
failed  any  trustee or other person who fails to register or
to maintain a registration  required  under  this  Act.   The
collected   penalty   shall  be  used  for  charitable  trust
enforcement and for providing charitable trust information to
the public.
(Source: P.A. 90-469, eff. 8-17-97.)
    (760 ILCS 55/7) (from Ch. 14, par. 57)
    Sec. 7. (a) Except as otherwise provided,  every  trustee
subject  to  this  Act shall, in addition to filing copies of
the instruments previously required, file with  the  Attorney
General  periodic  annual written reports under oath, setting
forth information as to the nature of  the  assets  held  for
charitable  purposes  and  the  administration thereof by the
trustee, in accordance with  rules  and  regulations  of  the
Attorney General.
    (b)  The   Attorney   General   shall   make   rules  and
regulations as to the time for filing reports,  the  contents
thereof, and the manner of executing and filing them.  He may
classify  trusts  and other relationships concerning property
held for a  charitable  purpose  as  to  purpose,  nature  of
assets,  duration  of the trust or other relationship, amount
of assets, amounts to  be  devoted  to  charitable  purposes,
nature  of trustee, or otherwise, and may establish different
rules for the different classes as to time and nature of  the
reports  required  to  the  ends  (1)  that  he shall receive
reasonably current,  annual  reports  as  to  all  charitable
trusts or other relationships of a similar nature, which will
enable  him  to  ascertain  whether  they  are being properly
administered,  and  (2)  that  periodic  reports  shall   not
unreasonably  add  to  the  expense  of the administration of
charitable trusts and similar  relationships.   The  Attorney
General  may suspend the filing of reports as to a particular
charitable  trust   or   relationship   for   a   reasonable,
specifically  designated time upon written application of the
trustee  filed  with  the  Attorney  General  and  after  the
Attorney General has filed  in  the  register  of  charitable
trusts   a  written  statement  that  the  interests  of  the
beneficiaries  will  not  be  prejudiced  thereby  and   that
periodic  reports  are not required for proper supervision by
his office.
    (c)  A copy of an account filed by  the  trustee  in  any
court having jurisdiction of the trust or other relationship,
if the account has been approved by the court in which it was
filed  and  notice  given  to  the  Attorney  General  as  an
interested  party,  may be filed as a report required by this
Section.
    (d)  The first report for a trust or similar relationship
hereafter established, unless the filing thereof is suspended
as herein provided, shall be filed not later  than  one  year
after  any  part  of the income or principal is authorized or
required to be applied to a charitable purpose. If  any  part
of  the income or principal of a trust previously established
is authorized or required  to  be  applied  to  a  charitable
purpose  at the time this Act takes effect, the first report,
unless the filing thereof is suspended, shall be filed within
6 months after the effective date of this Act.  In  addition,
every  trustee  registered  hereunder that received more than
$25,000 $15,000 in revenue during a trust fiscal year or  has
possession of more than $25,000 $15,000 of assets at any time
during  a  fiscal  year shall file an annual financial report
within 6 months of the close of the trust's or organization's
fiscal year, and if a calendar year the report shall  be  due
on  each  June  30  of  the  following  year.   Every trustee
registered hereunder that did not receive more  than  $25,000
$15,000  in  revenue  or  hold  more  than $25,000 $15,000 in
assets during a fiscal year  shall  file  only  a  simplified
summary   financial   statement  disclosing  only  the  gross
receipts, total disbursements, and assets on hand at the  end
of the year, on forms prescribed by the Attorney General.
    (e)  The periodic reporting provisions of this Act do not
apply  to  any trustee of a trust which is the subject matter
of an adversary proceeding pending in the  circuit  court  in
this State.  However, upon commencement of the proceeding the
trustee  shall  file  a  report  with  the  Attorney  General
informing him of that fact together with the title and number
of  the cause and the name of the court.  Upon entry of final
judgment in the cause the trustee shall in like manner report
that fact to the Attorney General and fully account  for  all
periods of suspension.
    (f)  The Attorney General in his discretion may, pursuant
to rules and regulations promulgated by the Attorney General,
accept  executed  copies  of federal Internal Revenue returns
and reports as a portion of the annual reporting.  The report
shall include a statement of any changes in  purpose  or  any
other   information   required   to   be   contained  in  the
registration form filed on behalf of the  organization.   The
report  shall  be  signed  under  penalty  of  perjury by the
president and the  chief  fiscal  officer  of  any  corporate
organization  or  by  2  trustees  if not a corporation.  One
signature shall be accepted if there is only one  officer  or
trustee.
    (g)  The  Attorney  General shall cancel the registration
of any trust or organization that wilfully  fails  to  comply
with  subsections (a), (b), (c) or (d) of this Section within
the time prescribed, and the assets of the  organization  may
through  court  proceedings  be  collected,  debts  paid  and
proceeds   distributed   under  court  supervision  to  other
charitable purposes upon an  action  filed  by  the  Attorney
General  as  law  and  equity  allow.    Upon  timely written
request, the due date for  filing  may  be  extended  by  the
Attorney  General  for  a  period  of  60  days.   Notice  of
registration  cancellation shall be mailed by regular mail to
the registrant at the registration file  address  or  to  its
registered  agent  or  president 21 days before the effective
date  of   the   cancellation.    Reports   submitted   after
registration is canceled shall require reregistration.
    (h)  Every  trustee registered hereunder that received in
any fiscal year more than $25,000 $15,000 in revenue or  held
more  than  $25,000  $15,000 in assets shall pay a fee of $15
along with each annual financial  report  filed  pursuant  to
this  Act.    If an annual report is not timely filed, a late
filing fee of an additional $100 is imposed and shall be paid
as a condition of filing a late report.    Reports  submitted
without the proper fee shall not be accepted for filing.
(Source: P.A. 90-469, eff. 8-17-97.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

[ Top ]