Illinois 2023-2024 Regular Session

Illinois House Bill HB1197 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0121
2	1		HB1197 EnrolledLRB103 25003 AMQ 51337 b HB1197 Enrolled LRB103 25003 AMQ 51337 b
3	2		HB1197 Enrolled LRB103 25003 AMQ 51337 b
4		-	AN ACT concerning regulation.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Solicitation for Charity Act is amended by
8		-	changing Sections 1 and 4 as follows:
9		-	(225 ILCS 460/1) (from Ch. 23, par. 5101)
10		-	Sec. 1. Definitions. The following words and phrases as
11		-	used in this Act shall have the following meanings unless a
12		-	different meaning is required by the context.
13		-	(a) "Charitable organization" means any benevolent,
14		-	philanthropic, patriotic, or eleemosynary person or one
15		-	purporting to be such which solicits and collects funds for
16		-	charitable purposes and includes each local, county, or area
17		-	division within this State of such charitable organization,
18		-	provided such local, county, or area division has authority
19		-	and discretion to disburse funds or property otherwise than by
20		-	transfer to any parent organization.
21		-	(b) "Contribution" means the promise or grant of any money
22		-	or property of any kind or value, including the promise to pay,
23		-	except payments by union members of an organization. Reference
24		-	to the dollar amount of "contributions" in this Act means in
25		-	the case of promises to pay, or payments for merchandise or
26		-	rights of any other description, the value of the total amount
	3	+	1 AN ACT concerning regulation.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Solicitation for Charity Act is amended by
	7	+	5 changing Sections 1 and 4 as follows:
	8	+	6 (225 ILCS 460/1) (from Ch. 23, par. 5101)
	9	+	7 Sec. 1. Definitions. The following words and phrases as
	10	+	8 used in this Act shall have the following meanings unless a
	11	+	9 different meaning is required by the context.
	12	+	10 (a) "Charitable organization" means any benevolent,
	13	+	11 philanthropic, patriotic, or eleemosynary person or one
	14	+	12 purporting to be such which solicits and collects funds for
	15	+	13 charitable purposes and includes each local, county, or area
	16	+	14 division within this State of such charitable organization,
	17	+	15 provided such local, county, or area division has authority
	18	+	16 and discretion to disburse funds or property otherwise than by
	19	+	17 transfer to any parent organization.
	20	+	18 (b) "Contribution" means the promise or grant of any money
	21	+	19 or property of any kind or value, including the promise to pay,
	22	+	20 except payments by union members of an organization. Reference
	23	+	21 to the dollar amount of "contributions" in this Act means in
	24	+	22 the case of promises to pay, or payments for merchandise or
	25	+	23 rights of any other description, the value of the total amount
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33		-	promised to be paid or paid for such merchandise or rights and
34		-	not merely that portion of the purchase price to be applied to
35		-	a charitable purpose. Contribution shall not include the
36		-	proceeds from the sale of admission tickets by any
37		-	not-for-profit music or dramatic arts organization which
38		-	establishes, by such proof as the Attorney General may
39		-	require, that it has received an exemption under Section
40		-	501(c)(3) of the Internal Revenue Code and which is organized
41		-	and operated for the presentation of live public performances
42		-	of musical or theatrical works on a regular basis. For
43		-	purposes of this subsection, union member dues and donated
44		-	services shall not be deemed contributions.
45		-	(c) "Person" means any individual, organization, group,
46		-	association, partnership, corporation, trust, or any
47		-	combination of them.
48		-	(d) "Professional fund raiser" means any person who for
49		-	compensation or other consideration, conducts, manages, or
50		-	carries on any solicitation or fund raising drive or campaign
51		-	in this State or from this State or on behalf of a charitable
52		-	organization residing within this State for the purpose of
53		-	soliciting, receiving, or collecting contributions for or on
54		-	behalf of any charitable organization or any other person, or
55		-	who engages in the business of, or holds himself or herself out
56		-	to persons in this State as independently engaged in the
57		-	business of soliciting, receiving, or collecting contributions
58		-	for such purposes. A bona fide director, officer, employee, or
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	34	+	1 promised to be paid or paid for such merchandise or rights and
	35	+	2 not merely that portion of the purchase price to be applied to
	36	+	3 a charitable purpose. Contribution shall not include the
	37	+	4 proceeds from the sale of admission tickets by any
	38	+	5 not-for-profit music or dramatic arts organization which
	39	+	6 establishes, by such proof as the Attorney General may
	40	+	7 require, that it has received an exemption under Section
	41	+	8 501(c)(3) of the Internal Revenue Code and which is organized
	42	+	9 and operated for the presentation of live public performances
	43	+	10 of musical or theatrical works on a regular basis. For
	44	+	11 purposes of this subsection, union member dues and donated
	45	+	12 services shall not be deemed contributions.
	46	+	13 (c) "Person" means any individual, organization, group,
	47	+	14 association, partnership, corporation, trust, or any
	48	+	15 combination of them.
	49	+	16 (d) "Professional fund raiser" means any person who for
	50	+	17 compensation or other consideration, conducts, manages, or
	51	+	18 carries on any solicitation or fund raising drive or campaign
	52	+	19 in this State or from this State or on behalf of a charitable
	53	+	20 organization residing within this State for the purpose of
	54	+	21 soliciting, receiving, or collecting contributions for or on
	55	+	22 behalf of any charitable organization or any other person, or
	56	+	23 who engages in the business of, or holds himself or herself out
	57	+	24 to persons in this State as independently engaged in the
	58	+	25 business of soliciting, receiving, or collecting contributions
	59	+	26 for such purposes. A bona fide director, officer, employee, or
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60	61
61		-	unpaid volunteer of a charitable organization shall not be
62		-	deemed a professional fund raiser unless the person is in a
63		-	management position and the majority of the individual's
64		-	salary or other compensation is computed on a percentage basis
65		-	of funds to be raised, or actually raised.
66		-	(e) "Professional fund raising consultant" means any
67		-	person who is retained by a charitable organization or trustee
68		-	for a fixed fee or rate that is not computed on a percentage of
69		-	funds to be raised, or actually raised, under a written
70		-	agreement, to only plan, advise, consult, or prepare materials
71		-	for a solicitation of contributions in this State, but who
72		-	does not manage, conduct or carry on a fundraising campaign
73		-	and who does not solicit contributions or employ, procure, or
74		-	engage any compensated person to solicit contributions and who
75		-	does not at any time have custody or control of contributions.
76		-	A volunteer, employee, or salaried officer of a charitable
77		-	organization or trustee maintaining a permanent establishment
78		-	or office in this State is not a professional fundraising
79		-	consultant. An attorney, investment counselor, or banker who
80		-	advises an individual, corporation, or association to make a
81		-	charitable contribution is not a professional fundraising
82		-	consultant as a result of the advice.
83		-	(f) "Charitable purpose" means any charitable, benevolent,
84		-	philanthropic, patriotic, or eleemosynary purpose.
85		-	(g) "Charitable Trust" means any relationship whereby
86		-	property is held by a person for a charitable purpose.
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88	63
89		-	(h) "Education Program Service" means any activity which
90		-	provides information to the public of a nature that is not
91		-	commonly known or facts which are not universally regarded as
92		-	obvious or as established by common understanding and which
93		-	informs the public of what it can or should do about a
94		-	particular issue.
95		-	(i) "Primary Program Service" means the program service
96		-	upon which an organization spends more than 50% of its program
97		-	service funds or the program activity which represents the
98		-	largest expenditure of funds in the fiscal period.
99		-	(j) "Professional solicitor" means any natural person who
100		-	is employed or retained for compensation by a professional
101		-	fund raiser to solicit, receive, or collect contributions for
102		-	charitable purposes from persons in this State or from this
103		-	State or on behalf of a charitable organization residing
104		-	within this State.
105		-	(k) "Program Service Activity" means the actual charitable
106		-	program activities of a charitable organization for which it
107		-	expends its resources.
108		-	(l) "Program Service Expense" means the expenses of
109		-	charitable program activity and not management expenses or
110		-	fund raising expenses. In determining Program Service Expense,
111		-	management and fund raising expenses may not be included.
112		-	(m) "Public Safety Personnel Organization" means any
113		-	person who uses any of the words "officer", "police",
114		-	"policeman", "policemen", "troopers", "sheriff", "law
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117		-	enforcement", "fireman", "firemen", "paramedic", or similar
118		-	words in its name or in conjunction with solicitations, or in
119		-	the title or name of a magazine, newspaper, periodical,
120		-	advertisement book, or any other medium of electronic or print
121		-	publication, and is not a governmental entity. No organization
122		-	may be a Public Safety Personnel Organization unless 80% or
123		-	more of its voting members or trustees are active or retired
124		-	police officers, police officers with disabilities, peace
125		-	officers, firemen, fire fighters, emergency medical
126		-	technicians - ambulance, emergency medical technicians -
127		-	intermediate, emergency medical technicians - paramedic,
128		-	ambulance drivers, or other medical assistance or first aid
129		-	personnel.
130		-	(m-5) "Public Safety Personnel" includes police officers,
131		-	peace officers, firemen, fire fighters, emergency medical
132		-	technicians - ambulance, emergency medical technicians -
133		-	intermediate, emergency medical technicians - paramedic,
134		-	ambulance drivers, and other medical assistance or first aid
135		-	personnel.
136		-	(n) "Trustee" means any person, individual, group of
137		-	individuals, association, corporation, not for profit
138		-	corporation, or other legal entity holding property for or
139		-	solicited for any charitable purpose; or any officer,
140		-	director, executive director or other controlling persons of a
141		-	corporation soliciting or holding property for a charitable
142		-	purpose.
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	70	+	1 unpaid volunteer of a charitable organization shall not be
	71	+	2 deemed a professional fund raiser unless the person is in a
	72	+	3 management position and the majority of the individual's
	73	+	4 salary or other compensation is computed on a percentage basis
	74	+	5 of funds to be raised, or actually raised.
	75	+	6 (e) "Professional fund raising consultant" means any
	76	+	7 person who is retained by a charitable organization or trustee
	77	+	8 for a fixed fee or rate that is not computed on a percentage of
	78	+	9 funds to be raised, or actually raised, under a written
	79	+	10 agreement, to only plan, advise, consult, or prepare materials
	80	+	11 for a solicitation of contributions in this State, but who
	81	+	12 does not manage, conduct or carry on a fundraising campaign
	82	+	13 and who does not solicit contributions or employ, procure, or
	83	+	14 engage any compensated person to solicit contributions and who
	84	+	15 does not at any time have custody or control of contributions.
	85	+	16 A volunteer, employee, or salaried officer of a charitable
	86	+	17 organization or trustee maintaining a permanent establishment
	87	+	18 or office in this State is not a professional fundraising
	88	+	19 consultant. An attorney, investment counselor, or banker who
	89	+	20 advises an individual, corporation, or association to make a
	90	+	21 charitable contribution is not a professional fundraising
	91	+	22 consultant as a result of the advice.
	92	+	23 (f) "Charitable purpose" means any charitable, benevolent,
	93	+	24 philanthropic, patriotic, or eleemosynary purpose.
	94	+	25 (g) "Charitable Trust" means any relationship whereby
	95	+	26 property is held by a person for a charitable purpose.
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145		-	(o) "Reviewed financial statements" means procedures
146		-	performed on financial statements in accordance with
147		-	statements on standards for accounting and review services
148		-	issued by the American Institute of Certified Public
149		-	Accountants, in which a certified public accountant obtains
150		-	limited assurance as a basis for reporting whether the
151		-	accountant is aware of any material modifications that should
152		-	be made to the financial statements for them to be in
153		-	accordance with the specified basis of accounting. This
154		-	subsection is inoperative on and after January 1, 2029.
155		-	(Source: P.A. 99-143, eff. 7-27-15.)
156		-	(225 ILCS 460/4) (from Ch. 23, par. 5104)
157		-	Sec. 4. Annual reporting for charities.
158		-	(a) Every charitable organization registered pursuant to
159		-	Section 2 of this Act which shall receive in any 12-month
160		-	period ending upon its established fiscal or calendar year
161		-	contributions in excess of $500,000 $300,000 and every
162		-	charitable organization whose fund raising functions are not
163		-	carried on solely by staff employees or persons who are unpaid
164		-	for such services, if the organization shall receive in any
165		-	12-month period ending upon its established fiscal or calendar
166		-	year contributions in excess of $25,000, shall file a written
167		-	report with the Attorney General upon forms prescribed by him
168		-	or her, on or before June 30 of each year if its books are kept
169		-	on a calendar basis, or within 6 months after the close of its
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172		-	fiscal year if its books are kept on a fiscal year basis, which
173		-	written report shall include a financial statement covering
174		-	the immediately preceding 12-month period of operation. Such
175		-	financial statement shall include a balance sheet and
176		-	statement of income and expense, and shall be consistent with
177		-	forms furnished by the Attorney General clearly setting forth
178		-	the following: gross receipts and gross income from all
179		-	sources, broken down into total receipts and income from each
180		-	separate solicitation project or source; cost of
181		-	administration; cost of solicitation; cost of programs
182		-	designed to inform or educate the public; funds or properties
183		-	transferred out of this State, with explanation as to
184		-	recipient and purpose; cost of fundraising; compensation paid
185		-	to trustees; and total net amount disbursed or dedicated for
186		-	each major purpose, charitable or otherwise. Such report shall
187		-	also include a statement of any changes in the information
188		-	required to be contained in the registration form filed on
189		-	behalf of such organization. The report shall be signed by the
190		-	president or other authorized officer and the chief fiscal
191		-	officer of the organization who shall certify that the
192		-	statements therein are true and correct to the best of their
193		-	knowledge, and shall be accompanied by an opinion signed by an
194		-	independent certified public accountant that the financial
195		-	statement therein fairly represents the financial operations
196		-	of the organization in sufficient detail to permit public
197		-	evaluation of its operations. Said opinion may be relied upon
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200		-	by the Attorney General.
201		-	(b) Every organization registered pursuant to Section 2 of
202		-	this Act which shall receive in any 12-month period ending
203		-	upon its established fiscal or calendar year of any year
204		-	contributions:
205		-	(1) in excess of $15,000, but not in excess of
206		-	$25,000, during a fiscal year shall file only a simplified
207		-	summary financial statement disclosing only the gross
208		-	receipts, total disbursements, and assets on hand at the
209		-	end of the year on forms prescribed by the Attorney
210		-	General; or
211		-	(2) in excess of $25,000, but not in excess of
212		-	$300,000, if it is not required to submit a report under
213		-	subsection (a) of this Section, shall file a written
214		-	report with the Attorney General upon forms prescribed by
215		-	him, on or before June 30 of each year if its books are
216		-	kept on a calendar basis, or within 6 months after the
217		-	close of its fiscal year if its books are kept on a fiscal
218		-	year basis, which shall include a financial statement
219		-	covering the immediately preceding 12-month period of
220		-	operation limited to a statement of such organization's
221		-	gross receipts from contributions, the gross amount
222		-	expended for charitable educational programs, other
223		-	charitable programs, management expense, and fund raising
224		-	expenses including a separate statement of the cost of any
225		-	goods, services, or admissions supplied as part of its
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	106	+	1 (h) "Education Program Service" means any activity which
	107	+	2 provides information to the public of a nature that is not
	108	+	3 commonly known or facts which are not universally regarded as
	109	+	4 obvious or as established by common understanding and which
	110	+	5 informs the public of what it can or should do about a
	111	+	6 particular issue.
	112	+	7 (i) "Primary Program Service" means the program service
	113	+	8 upon which an organization spends more than 50% of its program
	114	+	9 service funds or the program activity which represents the
	115	+	10 largest expenditure of funds in the fiscal period.
	116	+	11 (j) "Professional solicitor" means any natural person who
	117	+	12 is employed or retained for compensation by a professional
	118	+	13 fund raiser to solicit, receive, or collect contributions for
	119	+	14 charitable purposes from persons in this State or from this
	120	+	15 State or on behalf of a charitable organization residing
	121	+	16 within this State.
	122	+	17 (k) "Program Service Activity" means the actual charitable
	123	+	18 program activities of a charitable organization for which it
	124	+	19 expends its resources.
	125	+	20 (l) "Program Service Expense" means the expenses of
	126	+	21 charitable program activity and not management expenses or
	127	+	22 fund raising expenses. In determining Program Service Expense,
	128	+	23 management and fund raising expenses may not be included.
	129	+	24 (m) "Public Safety Personnel Organization" means any
	130	+	25 person who uses any of the words "officer", "police",
	131	+	26 "policeman", "policemen", "troopers", "sheriff", "law
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227	133
228		-	solicitations, and the disposition of the net proceeds
229		-	from contributions, including compensation paid to
230		-	trustees, consistent with forms furnished by the Attorney
231		-	General. Such report shall also include a statement of any
232		-	changes in the information required to be contained in the
233		-	registration form filed on behalf of such organization.
234		-	The report shall be signed by the president or other
235		-	authorized officer and the chief fiscal officer of the
236		-	organization who shall certify that the statements therein
237		-	are true and correct to the best of their knowledge; or .
238		-	(3) in excess of $300,000, but not in excess of
239		-	$500,000, if it is not required to submit a report under
240		-	subsection (a), shall file a written report with the
241		-	Attorney General upon forms prescribed by the Attorney
242		-	General, on or before June 30 of each year if its books are
243		-	kept on a calendar basis, or within 6 months after the
244		-	close of its fiscal year if its books are kept on a fiscal
245		-	year basis, which written report shall include a financial
246		-	statement covering the immediately preceding 12-month
247		-	period of operation limited to a statement of such
248		-	organization's gross receipts from contributions, the
249		-	gross amount expended for charitable educational programs,
250		-	other charitable programs, management expense, and fund
251		-	raising expenses, including a separate statement of the
252		-	cost of any goods, services, or admissions supplied as
253		-	part of its solicitations, and the disposition of the net
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255	135
256		-	proceeds from contributions, including compensation paid
257		-	to trustees, consistent with forms furnished by the
258		-	Attorney General. Such report shall also include a
259		-	statement of any changes in the information required to be
260		-	contained in the registration form filed on behalf of such
261		-	organization. The report shall be signed by the president
262		-	or other authorized officer and the chief fiscal officer
263		-	of the organization who shall certify that the statements
264		-	therein are true and correct to the best of their
265		-	knowledge and shall be accompanied by reviewed financial
266		-	statements, including a report signed by an independent
267		-	certified public accountant stating that the independent
268		-	certified public accountant is not aware of any material
269		-	modifications that should be made to the financial
270		-	statements in order to permit public evaluation of its
271		-	operations. The report may be relied upon by the Attorney
272		-	General.
273		-	(c) For any fiscal or calendar year of any organization
274		-	registered pursuant to Section 2 of this Act in which such
275		-	organization would have been exempt from registration pursuant
276		-	to Section 3 of this Act if it had not been so registered, or
277		-	in which it did not solicit or receive contributions, such
278		-	organization shall file, on or before June 30 of each year if
279		-	its books are kept on a calendar basis, or within 6 months
280		-	after the close of its fiscal year if its books are kept on a
281		-	fiscal year basis, instead of the reports required by
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284		-	subdivisions (a) or (b) of this Section, a statement certified
285		-	under penalty of perjury by its president and chief fiscal
286		-	officer stating the exemption and the facts upon which it is
287		-	based or that such organization did not solicit or receive
288		-	contributions in such fiscal year. The statement shall also
289		-	include a statement of any changes in the information required
290		-	to be contained in the registration form filed on behalf of
291		-	such organization.
292		-	(d) As an alternative means of satisfying the duties and
293		-	obligations otherwise imposed by this Section, any veterans
294		-	organization chartered or incorporated under federal law and
295		-	any veterans organization which is affiliated with, and
296		-	recognized in the bylaws of, a congressionally chartered or
297		-	incorporated organization may, at its option, annually file
298		-	with the Attorney General the following documents:
299		-	(1) A copy of its Form 990, as filed with the Internal
300		-	Revenue Service.
301		-	(2) Copies of any reports required to be filed by the
302		-	affiliate with the congressionally chartered or
303		-	incorporated veterans organization, as well as copies of
304		-	any reports filed by the congressionally chartered or
305		-	incorporated veterans organization with the government of
306		-	the United States pursuant to federal law.
307		-	(3) Copies of all contracts entered into by the
308		-	congressionally chartered or incorporated veterans
309		-	organization or its affiliate for purposes of raising
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	142	+	1 enforcement", "fireman", "firemen", "paramedic", or similar
	143	+	2 words in its name or in conjunction with solicitations, or in
	144	+	3 the title or name of a magazine, newspaper, periodical,
	145	+	4 advertisement book, or any other medium of electronic or print
	146	+	5 publication, and is not a governmental entity. No organization
	147	+	6 may be a Public Safety Personnel Organization unless 80% or
	148	+	7 more of its voting members or trustees are active or retired
	149	+	8 police officers, police officers with disabilities, peace
	150	+	9 officers, firemen, fire fighters, emergency medical
	151	+	10 technicians - ambulance, emergency medical technicians -
	152	+	11 intermediate, emergency medical technicians - paramedic,
	153	+	12 ambulance drivers, or other medical assistance or first aid
	154	+	13 personnel.
	155	+	14 (m-5) "Public Safety Personnel" includes police officers,
	156	+	15 peace officers, firemen, fire fighters, emergency medical
	157	+	16 technicians - ambulance, emergency medical technicians -
	158	+	17 intermediate, emergency medical technicians - paramedic,
	159	+	18 ambulance drivers, and other medical assistance or first aid
	160	+	19 personnel.
	161	+	20 (n) "Trustee" means any person, individual, group of
	162	+	21 individuals, association, corporation, not for profit
	163	+	22 corporation, or other legal entity holding property for or
	164	+	23 solicited for any charitable purpose; or any officer,
	165	+	24 director, executive director or other controlling persons of a
	166	+	25 corporation soliciting or holding property for a charitable
	167	+	26 purpose.
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311	169
312		-	funds in this State, such copies to be filed with the
313		-	Attorney General no more than 30 days after execution of
314		-	the contracts.
315		-	(e) As an alternative means of satisfying all of the
316		-	duties and obligations otherwise imposed by this Section, any
317		-	person, pursuant to a contract with a charitable organization,
318		-	a veterans organization, or an affiliate described or referred
319		-	to in subsection (d), who receives, collects, holds, or
320		-	transports as the agent of the organization or affiliate for
321		-	purposes of resale any used or second hand personal property,
322		-	including, but not limited to, household goods, furniture, or
323		-	clothing donated to the organization or affiliate may, at its
324		-	option, annually file with the Attorney General the following
325		-	documents, accompanied by an annual filing fee of $15:
326		-	(1) A notarized report including the number of
327		-	donations of personal property it has received on behalf
328		-	of the charitable organization, veterans organization, or
329		-	affiliate during the preceding year. For purposes of this
330		-	report, the number of donations of personal property shall
331		-	refer to the number of stops or pickups made regardless of
332		-	the number of items received at each stop or pickup. The
333		-	report may cover the person's fiscal year, in which case
334		-	it shall be filed with the Attorney General no later than
335		-	90 days after the close of that fiscal year.
336		-	(2) All contracts with the charitable organization,
337		-	veterans organization, or affiliate under which the person
338	170
339	171
340		-	has acted as an agent for the purposes listed above.
341		-	(3) All contracts by which the person agreed to pay
342		-	the charitable organization, veterans organization, or
343		-	affiliate a fixed amount for, or a fixed percentage of the
344		-	value of, each donation of used or second hand personal
345		-	property. Copies of all such contracts shall be filed no
346		-	later than 30 days after they are executed.
347		-	(f) The Attorney General may seek appropriate equitable
348		-	relief from a court, enter into a binding nonjudicial
349		-	settlement agreement, or or, in his discretion, cancel the
350		-	registration of any organization which fails to comply with
351		-	subsection subdivision (a), (b), or (c) of this Section within
352		-	the time therein prescribed, or fails to furnish such
353		-	additional information as is requested by the Attorney General
354		-	within the required time; except that the time may be extended
355		-	by the Attorney General for a period not to exceed 60 days upon
356		-	a timely written request and for good cause stated. Unless
357		-	otherwise stated herein, the Attorney General shall, by rule,
358		-	set forth the standards used to determine whether a
359		-	registration shall be cancelled as authorized by this
360		-	subsection. Such standards shall be stated as precisely and
361		-	clearly as practicable, to inform fully those persons
362		-	affected. Notice of such cancellation shall be mailed to the
363		-	registrant at least 15 days before the effective date thereof.
364		-	(g) The Attorney General in his or her discretion may,
365		-	pursuant to rule, accept executed copies of federal Internal
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366	174
367	175
368		-	Revenue returns and reports as a portion of the foregoing
369		-	annual reporting in the interest of minimizing paperwork,
370		-	except there shall be no substitute for the independent
371		-	certified public accountant audit opinion required by this
372		-	Act.
373		-	(h) The Attorney General after canceling the registration
374		-	of any trust or organization which fails to comply with this
375		-	Section within the time therein prescribed may by court
376		-	proceedings, in addition to all other relief, seek to collect
377		-	the assets and distribute such under court supervision to
378		-	other charitable purposes.
379		-	(h-5) The Attorney General, within a binding nonjudicial
380		-	settlement agreement, may accept a written assurance of
381		-	discontinuance of any method, act, or practice alleged to be a
382		-	violation of subsection (a), (b), or (c) from the person who
383		-	has engaged in the method, act, or practice. The Attorney
384		-	General may at any time reopen a matter in which an assurance
385		-	of discontinuance is accepted for further proceedings if the
386		-	Attorney General determines that reopening the matter is in
387		-	the public interest. Evidence of a violation of an assurance
388		-	of discontinuance is prima facie evidence of a violation of
389		-	this Act in any subsequent proceeding brought by the Attorney
390		-	General.
391		-	(i) Every trustee, person, and organization required to
392		-	file an annual report shall pay a filing fee of $15 with each
393		-	annual financial report filed pursuant to this Section. If a
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	178	+	1 (o) "Reviewed financial statements" means procedures
	179	+	2 performed on financial statements in accordance with
	180	+	3 statements on standards for accounting and review services
	181	+	4 issued by the American Institute of Certified Public
	182	+	5 Accountants, in which a certified public accountant obtains
	183	+	6 limited assurance as a basis for reporting whether the
	184	+	7 accountant is aware of any material modifications that should
	185	+	8 be made to the financial statements for them to be in
	186	+	9 accordance with the specified basis of accounting. This
	187	+	10 subsection is inoperative on and after January 1, 2029.
	188	+	11 (Source: P.A. 99-143, eff. 7-27-15.)
	189	+	12 (225 ILCS 460/4) (from Ch. 23, par. 5104)
	190	+	13 Sec. 4. Annual reporting for charities.
	191	+	14 (a) Every charitable organization registered pursuant to
	192	+	15 Section 2 of this Act which shall receive in any 12-month
	193	+	16 period ending upon its established fiscal or calendar year
	194	+	17 contributions in excess of $500,000 $300,000 and every
	195	+	18 charitable organization whose fund raising functions are not
	196	+	19 carried on solely by staff employees or persons who are unpaid
	197	+	20 for such services, if the organization shall receive in any
	198	+	21 12-month period ending upon its established fiscal or calendar
	199	+	22 year contributions in excess of $25,000, shall file a written
	200	+	23 report with the Attorney General upon forms prescribed by him
	201	+	24 or her, on or before June 30 of each year if its books are kept
	202	+	25 on a calendar basis, or within 6 months after the close of its
394	203
395	204
396		-	proper and complete annual report is not timely filed, a late
397		-	filing fee of an additional $100 is imposed and shall be paid
398		-	as a condition of filing a late report. Reports submitted
399		-	without the proper fee shall not be accepted for filing.
400		-	Payment of the late filing fee and acceptance by the Attorney
401		-	General shall both be conditions of filing a late report. All
402		-	late filing fees shall be used to provide charitable trust
403		-	enforcement and dissemination of charitable trust information
404		-	to the public and shall be maintained in a separate fund for
405		-	such purpose known as the Illinois Charity Bureau Fund.
406		-	(j) There is created hereby a separate special fund in the
407		-	State Treasury to be known as the Illinois Charity Bureau
408		-	Fund. That Fund shall be under the control of the Attorney
409		-	General, and the funds, fees, and penalties deposited therein
410		-	shall be used by the Attorney General to enforce the
411		-	provisions of this Act and to gather and disseminate
412		-	information about charitable trustees and organizations to the
413		-	public.
414		-	(k) The changes made to this Section by this amendatory
415		-	Act of the 103rd General Assembly are inoperative on and after
416		-	January 1, 2029.
417		-	(Source: P.A. 100-201, eff. 8-18-17.)
418		-	Section 99. Effective date. This Act takes effect January
419		-	1, 2024.
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	213	+	1 fiscal year if its books are kept on a fiscal year basis, which
	214	+	2 written report shall include a financial statement covering
	215	+	3 the immediately preceding 12-month period of operation. Such
	216	+	4 financial statement shall include a balance sheet and
	217	+	5 statement of income and expense, and shall be consistent with
	218	+	6 forms furnished by the Attorney General clearly setting forth
	219	+	7 the following: gross receipts and gross income from all
	220	+	8 sources, broken down into total receipts and income from each
	221	+	9 separate solicitation project or source; cost of
	222	+	10 administration; cost of solicitation; cost of programs
	223	+	11 designed to inform or educate the public; funds or properties
	224	+	12 transferred out of this State, with explanation as to
	225	+	13 recipient and purpose; cost of fundraising; compensation paid
	226	+	14 to trustees; and total net amount disbursed or dedicated for
	227	+	15 each major purpose, charitable or otherwise. Such report shall
	228	+	16 also include a statement of any changes in the information
	229	+	17 required to be contained in the registration form filed on
	230	+	18 behalf of such organization. The report shall be signed by the
	231	+	19 president or other authorized officer and the chief fiscal
	232	+	20 officer of the organization who shall certify that the
	233	+	21 statements therein are true and correct to the best of their
	234	+	22 knowledge, and shall be accompanied by an opinion signed by an
	235	+	23 independent certified public accountant that the financial
	236	+	24 statement therein fairly represents the financial operations
	237	+	25 of the organization in sufficient detail to permit public
	238	+	26 evaluation of its operations. Said opinion may be relied upon
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	249	+	1 by the Attorney General.
	250	+	2 (b) Every organization registered pursuant to Section 2 of
	251	+	3 this Act which shall receive in any 12-month period ending
	252	+	4 upon its established fiscal or calendar year of any year
	253	+	5 contributions:
	254	+	6 (1) in excess of $15,000, but not in excess of
	255	+	7 $25,000, during a fiscal year shall file only a simplified
	256	+	8 summary financial statement disclosing only the gross
	257	+	9 receipts, total disbursements, and assets on hand at the
	258	+	10 end of the year on forms prescribed by the Attorney
	259	+	11 General; or
	260	+	12 (2) in excess of $25,000, but not in excess of
	261	+	13 $300,000, if it is not required to submit a report under
	262	+	14 subsection (a) of this Section, shall file a written
	263	+	15 report with the Attorney General upon forms prescribed by
	264	+	16 him, on or before June 30 of each year if its books are
	265	+	17 kept on a calendar basis, or within 6 months after the
	266	+	18 close of its fiscal year if its books are kept on a fiscal
	267	+	19 year basis, which shall include a financial statement
	268	+	20 covering the immediately preceding 12-month period of
	269	+	21 operation limited to a statement of such organization's
	270	+	22 gross receipts from contributions, the gross amount
	271	+	23 expended for charitable educational programs, other
	272	+	24 charitable programs, management expense, and fund raising
	273	+	25 expenses including a separate statement of the cost of any
	274	+	26 goods, services, or admissions supplied as part of its
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	285	+	1 solicitations, and the disposition of the net proceeds
	286	+	2 from contributions, including compensation paid to
	287	+	3 trustees, consistent with forms furnished by the Attorney
	288	+	4 General. Such report shall also include a statement of any
	289	+	5 changes in the information required to be contained in the
	290	+	6 registration form filed on behalf of such organization.
	291	+	7 The report shall be signed by the president or other
	292	+	8 authorized officer and the chief fiscal officer of the
	293	+	9 organization who shall certify that the statements therein
	294	+	10 are true and correct to the best of their knowledge; or .
	295	+	11 (3) in excess of $300,000, but not in excess of
	296	+	12 $500,000, if it is not required to submit a report under
	297	+	13 subsection (a), shall file a written report with the
	298	+	14 Attorney General upon forms prescribed by the Attorney
	299	+	15 General, on or before June 30 of each year if its books are
	300	+	16 kept on a calendar basis, or within 6 months after the
	301	+	17 close of its fiscal year if its books are kept on a fiscal
	302	+	18 year basis, which written report shall include a financial
	303	+	19 statement covering the immediately preceding 12-month
	304	+	20 period of operation limited to a statement of such
	305	+	21 organization's gross receipts from contributions, the
	306	+	22 gross amount expended for charitable educational programs,
	307	+	23 other charitable programs, management expense, and fund
	308	+	24 raising expenses, including a separate statement of the
	309	+	25 cost of any goods, services, or admissions supplied as
	310	+	26 part of its solicitations, and the disposition of the net
	311	+
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	321	+	1 proceeds from contributions, including compensation paid
	322	+	2 to trustees, consistent with forms furnished by the
	323	+	3 Attorney General. Such report shall also include a
	324	+	4 statement of any changes in the information required to be
	325	+	5 contained in the registration form filed on behalf of such
	326	+	6 organization. The report shall be signed by the president
	327	+	7 or other authorized officer and the chief fiscal officer
	328	+	8 of the organization who shall certify that the statements
	329	+	9 therein are true and correct to the best of their
	330	+	10 knowledge and shall be accompanied by reviewed financial
	331	+	11 statements, including a report signed by an independent
	332	+	12 certified public accountant stating that the independent
	333	+	13 certified public accountant is not aware of any material
	334	+	14 modifications that should be made to the financial
	335	+	15 statements in order to permit public evaluation of its
	336	+	16 operations. The report may be relied upon by the Attorney
	337	+	17 General.
	338	+	18 (c) For any fiscal or calendar year of any organization
	339	+	19 registered pursuant to Section 2 of this Act in which such
	340	+	20 organization would have been exempt from registration pursuant
	341	+	21 to Section 3 of this Act if it had not been so registered, or
	342	+	22 in which it did not solicit or receive contributions, such
	343	+	23 organization shall file, on or before June 30 of each year if
	344	+	24 its books are kept on a calendar basis, or within 6 months
	345	+	25 after the close of its fiscal year if its books are kept on a
	346	+	26 fiscal year basis, instead of the reports required by
	347	+
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	357	+	1 subdivisions (a) or (b) of this Section, a statement certified
	358	+	2 under penalty of perjury by its president and chief fiscal
	359	+	3 officer stating the exemption and the facts upon which it is
	360	+	4 based or that such organization did not solicit or receive
	361	+	5 contributions in such fiscal year. The statement shall also
	362	+	6 include a statement of any changes in the information required
	363	+	7 to be contained in the registration form filed on behalf of
	364	+	8 such organization.
	365	+	9 (d) As an alternative means of satisfying the duties and
	366	+	10 obligations otherwise imposed by this Section, any veterans
	367	+	11 organization chartered or incorporated under federal law and
	368	+	12 any veterans organization which is affiliated with, and
	369	+	13 recognized in the bylaws of, a congressionally chartered or
	370	+	14 incorporated organization may, at its option, annually file
	371	+	15 with the Attorney General the following documents:
	372	+	16 (1) A copy of its Form 990, as filed with the Internal
	373	+	17 Revenue Service.
	374	+	18 (2) Copies of any reports required to be filed by the
	375	+	19 affiliate with the congressionally chartered or
	376	+	20 incorporated veterans organization, as well as copies of
	377	+	21 any reports filed by the congressionally chartered or
	378	+	22 incorporated veterans organization with the government of
	379	+	23 the United States pursuant to federal law.
	380	+	24 (3) Copies of all contracts entered into by the
	381	+	25 congressionally chartered or incorporated veterans
	382	+	26 organization or its affiliate for purposes of raising
	383	+
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	393	+	1 funds in this State, such copies to be filed with the
	394	+	2 Attorney General no more than 30 days after execution of
	395	+	3 the contracts.
	396	+	4 (e) As an alternative means of satisfying all of the
	397	+	5 duties and obligations otherwise imposed by this Section, any
	398	+	6 person, pursuant to a contract with a charitable organization,
	399	+	7 a veterans organization, or an affiliate described or referred
	400	+	8 to in subsection (d), who receives, collects, holds, or
	401	+	9 transports as the agent of the organization or affiliate for
	402	+	10 purposes of resale any used or second hand personal property,
	403	+	11 including, but not limited to, household goods, furniture, or
	404	+	12 clothing donated to the organization or affiliate may, at its
	405	+	13 option, annually file with the Attorney General the following
	406	+	14 documents, accompanied by an annual filing fee of $15:
	407	+	15 (1) A notarized report including the number of
	408	+	16 donations of personal property it has received on behalf
	409	+	17 of the charitable organization, veterans organization, or
	410	+	18 affiliate during the preceding year. For purposes of this
	411	+	19 report, the number of donations of personal property shall
	412	+	20 refer to the number of stops or pickups made regardless of
	413	+	21 the number of items received at each stop or pickup. The
	414	+	22 report may cover the person's fiscal year, in which case
	415	+	23 it shall be filed with the Attorney General no later than
	416	+	24 90 days after the close of that fiscal year.
	417	+	25 (2) All contracts with the charitable organization,
	418	+	26 veterans organization, or affiliate under which the person
	419	+
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	429	+	1 has acted as an agent for the purposes listed above.
	430	+	2 (3) All contracts by which the person agreed to pay
	431	+	3 the charitable organization, veterans organization, or
	432	+	4 affiliate a fixed amount for, or a fixed percentage of the
	433	+	5 value of, each donation of used or second hand personal
	434	+	6 property. Copies of all such contracts shall be filed no
	435	+	7 later than 30 days after they are executed.
	436	+	8 (f) The Attorney General may seek appropriate equitable
	437	+	9 relief from a court, enter into a binding nonjudicial
	438	+	10 settlement agreement, or or, in his discretion, cancel the
	439	+	11 registration of any organization which fails to comply with
	440	+	12 subsection subdivision (a), (b), or (c) of this Section within
	441	+	13 the time therein prescribed, or fails to furnish such
	442	+	14 additional information as is requested by the Attorney General
	443	+	15 within the required time; except that the time may be extended
	444	+	16 by the Attorney General for a period not to exceed 60 days upon
	445	+	17 a timely written request and for good cause stated. Unless
	446	+	18 otherwise stated herein, the Attorney General shall, by rule,
	447	+	19 set forth the standards used to determine whether a
	448	+	20 registration shall be cancelled as authorized by this
	449	+	21 subsection. Such standards shall be stated as precisely and
	450	+	22 clearly as practicable, to inform fully those persons
	451	+	23 affected. Notice of such cancellation shall be mailed to the
	452	+	24 registrant at least 15 days before the effective date thereof.
	453	+	25 (g) The Attorney General in his or her discretion may,
	454	+	26 pursuant to rule, accept executed copies of federal Internal
	455	+
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	465	+	1 Revenue returns and reports as a portion of the foregoing
	466	+	2 annual reporting in the interest of minimizing paperwork,
	467	+	3 except there shall be no substitute for the independent
	468	+	4 certified public accountant audit opinion required by this
	469	+	5 Act.
	470	+	6 (h) The Attorney General after canceling the registration
	471	+	7 of any trust or organization which fails to comply with this
	472	+	8 Section within the time therein prescribed may by court
	473	+	9 proceedings, in addition to all other relief, seek to collect
	474	+	10 the assets and distribute such under court supervision to
	475	+	11 other charitable purposes.
	476	+	12 (h-5) The Attorney General, within a binding nonjudicial
	477	+	13 settlement agreement, may accept a written assurance of
	478	+	14 discontinuance of any method, act, or practice alleged to be a
	479	+	15 violation of subsection (a), (b), or (c) from the person who
	480	+	16 has engaged in the method, act, or practice. The Attorney
	481	+	17 General may at any time reopen a matter in which an assurance
	482	+	18 of discontinuance is accepted for further proceedings if the
	483	+	19 Attorney General determines that reopening the matter is in
	484	+	20 the public interest. Evidence of a violation of an assurance
	485	+	21 of discontinuance is prima facie evidence of a violation of
	486	+	22 this Act in any subsequent proceeding brought by the Attorney
	487	+	23 General.
	488	+	24 (i) Every trustee, person, and organization required to
	489	+	25 file an annual report shall pay a filing fee of $15 with each
	490	+	26 annual financial report filed pursuant to this Section. If a
	491	+
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	501	+	1 proper and complete annual report is not timely filed, a late
	502	+	2 filing fee of an additional $100 is imposed and shall be paid
	503	+	3 as a condition of filing a late report. Reports submitted
	504	+	4 without the proper fee shall not be accepted for filing.
	505	+	5 Payment of the late filing fee and acceptance by the Attorney
	506	+	6 General shall both be conditions of filing a late report. All
	507	+	7 late filing fees shall be used to provide charitable trust
	508	+	8 enforcement and dissemination of charitable trust information
	509	+	9 to the public and shall be maintained in a separate fund for
	510	+	10 such purpose known as the Illinois Charity Bureau Fund.
	511	+	11 (j) There is created hereby a separate special fund in the
	512	+	12 State Treasury to be known as the Illinois Charity Bureau
	513	+	13 Fund. That Fund shall be under the control of the Attorney
	514	+	14 General, and the funds, fees, and penalties deposited therein
	515	+	15 shall be used by the Attorney General to enforce the
	516	+	16 provisions of this Act and to gather and disseminate
	517	+	17 information about charitable trustees and organizations to the
	518	+	18 public.
	519	+	19 (k) The changes made to this Section by this amendatory
	520	+	20 Act of the 103rd General Assembly are inoperative on and after
	521	+	21 January 1, 2029.
	522	+	22 (Source: P.A. 100-201, eff. 8-18-17.)
	523	+	23 Section 99. Effective date. This Act takes effect January
	524	+	24 1, 2024.
	525	+
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