Illinois Charitable Organization Laws

ILLINOIS CHARITABLE ORGANIZATION LAWS

Exemptions

760 ILCS 55/4

THE ILLINOIS CHARITABLE TRUST ACT

SOLICITATION FOR CHARITY ACT

ILLINOIS CRIMINAL CODE SECTION 17-2

Three Illinois statutes, the Charitable Trust Act (760 ILCS 55/1), the Solicitation for Charity Act

(225 ILCS 460/1), and Section 17-2 of the Criminal Code (720 ILCS 5/17-2) govern the

activities of Illinois charitable organizations. The Illinois Attorney General administers these

statutes both as a source of public information and as an aid in fulfilling his common law duty

to protect charitable funds. The Charitable Trust Act and Section 17-2 of the Criminal Code

became law in 1961 and the Solicitation Act became law in 1963. The legislature has

amended these statutes; the most recent amendment to the Charitable Trust Act taking effect

July 27, 2015; the most recent amendment to Section 17-2 of the Criminal Code taking effect

August 18, 2017; and the most recent amendment to the Solicitation Act taking effect July

27, 2015. This booklet contains the complete text of the Charitable Trust Act, the Solicitation

for Charity Act and Section 17-2 of the Criminal Code, current as of January 1, 2019.

If you have any specific questions please write to the Office of the Illinois Attorney General,

Charitable Trust Bureau, 100 W. Randolph St., 11th Floor Chicago, Illinois 60601; telephone

(312) 814-2595; TTY (312) 814-3374.

Sincerely,

Attorney General Kwame Raoul

Sec. 4. (a) This Act does not apply to the United

States, any State, territory or possession of the

United States, the District of Columbia, the

Commonwealth of Puerto Rico, or to any of their

agencies or to any governmental subdivision; or

to a corporation sole, or other religious

corporation, trust or organization which holds

property for religious, charitable, hospital or

educational purposes or for the purpose of

operating cemeteries or a home or homes for the

aged; nor to any agency or organization,

incorporated or unincorporated, affiliated with and

directly supervised by such a religious corporation

or organization; or to an officer, director or trustee

of any such religious corporation, trust or

organization who holds property in his official

capacity for like purposes; or to a charitable

organization foundation, trust or corporation

organized for the purpose of and engaged in the

operation of schools or hospitals.

(b)

As an alternative means of satisfying the

duties and obligations otherwise imposed by this

Act, any veterans organization chartered or

incorporated under federal law and any veterans

organization which is affiliated with and

Table of Contents*

Text of the Charitable Trust Act,

760 ILCS 55/1 et seq. ..............................

1-4

Definitions ................................................. 1

Exemptions............................................... 1

Registration .............................................. 1

Annual Reports ......................................... 2

Charitable Trust for the Benefit of a Minor

or Person with a Disability; Report.............3

Administrative Subpoenas………………....3

Public Records………………………………3

Duties of Trustees…………………………..3

Termination and Transfer

of Certain Trusts ....................................... 3

Misuse of Charitable Assets ..................... 4

Terrorist Acts………………………………...4

Penalties for Personal Use

of Charitable Assets ................................. 4

Text of the Solicitation for Charity Act,

225 ILCS 460/1 et seq. .......................... 4-13

Definitions................................................. 5

Registration of Charities ........................... 5

Exemptions ............................................... 6

Annual Reports of Charities ...................... 7

Service of Process .................................... 8

Professional Fund Raiser Registration……8

Professional Fundraising Consultant

Registration .............................................. 9

Professional Fund Raiser Contracts ......... 9

Public Safety Personnel Organization . . . 10

Professional Solicitor Registration .......... 10

Civil Actions by the Attorney General ... 10

Administrative Subpoenas ...................... 11

Unauthorized Solicitations ...................... 11

Registration not an Endorsement ............ 11

Fundraising Requirements ...................... 12

Misuse of Charitable Assets ................... 12

Terrorist Acts .......................................... 12

Public Disclosure in Solicitations ............. 13

Statutory Misrepresentations .................. 13

Penalties for Personal Use of

Charitable Assets ................................... 13

Text of Sec. 17-2 of the Criminal Code,

720 ILCS 5/17-2……………………………13-15

False Personation .......................................

* The categories in this Table of Contents are

included in the text of this booklet for information

purposes only, and are not part of the actual text

of the statute.

CHARITABLE TRUST ACT

An Act providing for the reporting of and the

enforcement of certain charitable trusts. 760

ILCS 55/1 et seq.

760 ILCS 55/1

Sec. 1. This Act may be cited as Charitable

Trust Act.

760 ILCS 55/2

Sec. 2. This Act applies to any and all trustees,

as defined in Section 3 [760 ILCS 55/3], holding

property of a value in excess of $4,000.

Definitions

760 ILCS 55/3

Sec. 3. "Trustee" means any person, individual,

group of individuals, association, corporation,

not-for-profit corporation, estate representative, or

other legal entity holding property for or solicited

for any charitable purpose; or any chief operating

officer, director, executive director or owner of a

corporation soliciting or holding property for a

charitable purpose.

recognized in the bylaws of a congressionally

chartered or incorporated veterans organization

may register with the Attorney General as

provided in Section 5 of this Act [760 ILCS 55/5]

and comply with the filing requirements set forth

in subsection (d) of Section 4 of the Solicitation

for Charity Act [225 ILCS 460/4].

(c)

Any person who would be subject to the

provisions of Section 2 of this Act [760 ILCS 55/2]

solely by virtue of acting as agent in receiving,

collecting, holding or transporting used or second

hand personal property for a charitable

organization, a veterans organization or an

affiliate as described in subsection (b) shall be

relieved of all duties and obligations otherwise

imposed by this Act upon filing with the Attorney

General the documents required under subsection

(e) of Section 4 of the Solicitation for Charity Act

[225 ILCS 460/4].

Registration

760 ILCS 55/5

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, 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 impose a civil

penalty of not less than $500 nor more than

$1,000 against the organization or trust estate

that failed 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.

760 ILCS 55/5A

Sec. 5A. Organizations that have been

approved for participation under the Voluntary

Payroll Deductions Act of 1983 [5 ILCS 340/1

et seq.] shall be reported to the Attorney

General by the Comptroller no later than May 1

of each year.

760 ILCS 55/6

Sec. 6. (a) Every trustee subject to this Act

who has received property for charitable

purposes shall file and register with the

Attorney General, within 6 months after any

part of the income or principal is received for

application to the charitable purpose, and prior

to disbursements, a copy of the trust

agreement, articles of incorporation or other

written instrument, if any, providing for his title,

powers or duties. In the event a trustee subject

to this Act is holding property for charitable

purposes under no such written instrument,

such trustee nevertheless shall file, in lieu of

such instrument, a statement in writing setting

forth his title, powers and duties with respect to

the property he is so holding. If any part of the

income or principal is authorized or required to

be applied to a charitable purpose, whether a

remainder interest or charitable lead interest, at

the time this Act takes effect, the filing shall be

made within 6 months after the effective date of

this Act. Upon complying with the requirement

of this Section, banks and trust companies,

authorized to accept and execute trusts in this

State, and an individual or individuals duly

appointed, qualified and acting as cofiduciary

or cofiduciaries with any such bank or trust

company, shall be exempt from all other

provisions and requirements of this Act, but

shall be required to annually file a copy of the

federal Internal Revenue report or return for the

trust within the time of its federal due date, with

the Attorney General in lieu of other reporting.

(b) If the settlor is still living, any trust which is

merely registered because it is a charitable

remainder interest or charitable lead interest trust,

and the charitable interest is not matured, whether

revocable or irrevocable, the trust may upon

written request be registered as a confidential

registration. A confidential registration shall mean

the Attorney General shall hold the file

confidentially and not make any filings therein

public, unless necessary and pursuant to

litigation. The Attorney General may, however,

disclose a confidential registration file for

statistical reasons if all indications of name and

identity are blocked out, but at all times

maintaining the confidentiality as required in this

subsection.

Annual Reports

760 ILCS 55/7

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 in revenue during a trust fiscal year

or has possession of more than $25,000 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 in revenue or hold more than

$25,000 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 willfully

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 in

revenue or held more than $25,000 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.

Charitable Trust for the Benefit of a

Minor or Person with a Disability;

Report.

760 ILCS 55/7.5

Sec. 7.5. Charitable trust for the benefit of

a minor or person with a disability; report.

(a) In the case of a charitable trust established

for the benefit of a minor or person with a

disability, the person or trustee responsible for

the trust, if not the guardian or parent, shall

report its existence by certified or registered

United States mail to the parent or guardian of

the minor or person with a disability within 30

days after formation of the trust and every 6

months thereafter. The written report shall

include the name and address of the trustee or

trustees responsible for the trust, the name

and address of the financial institution at which

funds for the trust are held, the amount of

funds raised for the trust, and an itemized list

of expenses for administration of the trust.

The guardian of the estate of the minor or

person with a disability shall report the

existence of the trust as part of the ward's

estate to the court that appointed the guardian

as part of its responsibility to manage the

ward's estate as established under Section 11-

13 of the Probate Act of 1975. Compliance

with this Section in no way affects other

requirements for trustee registration and

reporting under this Act or any accountings or

authorizations required by the court handling

the ward's estate.

(b) If a person or trustee fails to report the

existence of the trust to the minor's parent or

guardian or to the parent or guardian of the

person with a disability as required in this

Section, the person or trustee is subject to

injunction, to removal, to account, and to other

appropriate relief before a court of competent

jurisdiction exercising chancery jurisdiction.

trust for the benefit of a minor or person with a

disability is a trust, including a special needs

trust, that receives funds solicited from the

public under representations that such will (i)

benefit a needy minor or person with a

disability, (ii) pay the medical or living

expenses of the minor or person with a

disability, or (iii) be used to assist in family

expenses of the minor or person with a

disability.

(d) Each and every trustee of a charitable trust

for the benefit of a minor or person with a

disability must register under this Act and in

addition must file an annual report as required

by Section 7 of this Act.

760 ILCS 55/8

Sec. 8. The Attorney General may make

additional rules and regulations necessary for

the administration of this Act.

Administrative Subpoenas

760 ILCS 55/9

Sec. 9. The Attorney General may investigate

transactions and relationships of trustees subject

to this Act for the purpose of determining whether

the property held for charitable purposes is

properly administered. He may require any agent,

trustee, fiduciary, beneficiary, institution,

association, or corporation, or other person to

appear, at a named time and place, in the county

designated by the Attorney General, where the

person resides or is found, to give information

under oath and to produce books, memoranda,

papers, documents of title and evidence of

assets, liability, receipts, or disbursements in the

possession or control of the person ordered to

appear.

760 ILCS 55/10

Sec. 10. When the Attorney General requires

the attendance of any person, as provided in

Section 9 [760 ILCS 55/9], he shall issue an order

setting forth the time when and the place where

attendance is required and shall cause the same

to be served upon the person in the manner

provided for service of process in civil cases at

least 14 days before the date fixed for attendance.

Such order shall have the same force and effect

as a subpoena and, upon application of the

Attorney General, obedience to the order may be

enforced by the circuit court in the county where

the person receiving it resides or is found, in the

same manner as though the notice were a

subpoena. Such court may, in case of contumacy

or refusal to obey the order issued by the Attorney

General, issue an order requiring such person to

appear before the Attorney General or to produce

documentary evidence, if so ordered, or to give

evidence touching the matter in question, and any

failure to obey such order of the court may be

punished by that court as a contempt upon itself.

The investigation or hearing may be made by or

before any Assistant Attorney General designated

in writing by the Attorney General to conduct such

investigation or hearing on his behalf. Witnesses

ordered to appear shall be paid the same fees

and mileage as are paid witnesses in the circuit

courts of this State, and witnesses whose

depositions are taken and the persons taking the

same shall severally be entitled to the same fees

as are paid for like services in the circuit courts of

this State. The Attorney General or the Assistant

Attorney General acting in his behalf is

empowered to administer the necessary oath or

affirmation to such witnesses.

Public Records

760 ILCS 55/11

Sec. 11. Subject to reasonable rules and

regulations adopted by the Attorney General, the

with the Attorney General shall be open to public

inspection.

760 ILCS 55/12

Sec. 12. The Attorney General may institute

appropriate proceedings to secure compliance

with this Act and to secure the proper

administration of any trust or other relationship to

which this Act applies. Venue shall be proper in

any county where the Attorney General accepts

and maintains the list of registrations. In

furtherance of judicial economy, actions filed for

violation of this Act may name multiple trustees,

trusts, and organizations in a joint action where

each has engaged in similar conduct in violation

of this Act or where similar relief is sought against

those defendants for violation of this Act.

760 ILCS 55/13

Sec. 13. This Act shall apply regardless of any

contrary provisions of any instrument.

760 ILCS 55/14

Sec. 14. If any provision of this Act or the

application thereof to any person or circumstance

is held invalid, the invalidity shall not affect other

provisions or applications of the Act which can be

given effect without the invalid provision or

application, and to this end the provisions of this

Act are severable.

Duties of Trustees

760 ILCS 55/15

Sec. 15. (a) Charitable trustees are subject to

certain duties otherwise defined in Illinois statutes

and case law, which include but are not limited to

the following:

(1)

To avoid "self-dealing" and conflicts of interest;

(2)

To avoid wasting charitable assets;

(3)

To avoid incurring penalties, fines, and

unnecessary taxes;

(4)

To adhere and conform the charitable

organization to its charitable purpose;

(5)

To not make non-program loans, gifts, or

advances to any person, except as allowed by the

General Not For Profit Corporation Act of 1986

[805 ILCS 105/101.01 et seq.];

(6)

To utilize the trust in conformity with its

purposes for the best interest of the beneficiaries;

(7)

To timely file registration and financial reports

required by this Act; and

(8)

To comply and to cause the charitable

organization to comply with this Act and, if

incorporated, the General Not For Profit

Corporation Act of 1986 [805 ILCS 105/101.01 et

seq.].

(b) 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 in this Act. All books and

records shall be open for inspection at all

reasonable times by the Attorney General or his

authorized representative.

Termination and Transfer of Certain

Trusts

760 ILCS 55/15.5

Sec. 15.5. Termination and transfer of certain

trusts.

(a)

If a trustee who is subject to this Act

determines that the continued administration of

a trust has become impractical because of the

trust's small size or because of changed

circumstances that adversely affect the

charitable purpose or purposes of the trust,

then after notifying each named charitable

organization, if any, for the benefit of which the

trust was created and after obtaining the

consent of the Attorney General, the trustee

may amend the terms of the governing

instrument of the trust to the extent necessary

to terminate the trust and to transfer the trust

assets as provided in subsection (c) or (d). The

Attorney General shall consent to the

termination of the trust and the transfer of the

trust assets only after having determined that

the termination and transfer are necessary or

appropriate, in the case of termination because

of the trust's small size, to implement the

charitable purpose or purposes of the trust or,

in the case of termination because of changed

circumstances, to fulfill the general intent of the

donor of the trust as expressed in the

governing instrument of the trust.

(b)

For purposes of subsection (a), the term

"small size" shall mean a trust for which the

annual expenses of administration, including

the trustee's fees, the investment management

and accounting fees and excise taxes would, if

charged entirely against income, exceed 25%

of the income of the trust, and the term

"changed circumstances" shall mean a

condition in which the charitable purpose or

purposes of the trust shall, in the judgment of

the trustee, have become illegal, unnecessary,

incapable of fulfillment, or inconsistent with the

charitable needs of the community.

(c)

Subject to subsection (d) with respect to a

trust terminated because of the trust's small

size, the trustee shall transfer the trust assets

of the terminated trust to a community

foundation or similar publicly-supported

organization described in Section 170

(b)(1)(A)(vi) of the Internal Revenue Code of

1986 [26 U.S.C. § 170], to be administered, in

the case of termination because of the trust's

small size, in implementation of the charitable

purpose or purposes of the trust or, in the case

of termination because of changed

circumstances, in accordance with the general

intent of the donor of the trust as expressed in

the governing instrument of the trust.

(d)

If a trust terminated because of the trust's

small size was created for the benefit of a

named charitable organization which has

established an endowment fund and if the

principal of the endowment fund is under its

irrevocable terms no more expendable by the

organization than is the principal of the trust

under the terms of the governing instrument of

the trust, the charitable organization may direct

the trustee to transfer the trust assets of the

trust to the endowment fund, to be

administered in implementation of the

charitable purpose or purposes of the trust.

(e)

A trustee need not obtain the approval of

any court in order to terminate a trust and to

transfer the trust assets as provided in this

Section.

(f)

The provisions of this Section are an

alternative to and not in abrogation of any other

course of action provided by law. A trustee shall

not incur any civil or criminal liability by reason of

acting in accordance with this Section.

Misuse of Charitable Assets

760 ILCS 55/16

Sec. 16. (a) Any person who, intentionally and

in breach of fiduciary duty with malice, misuses

charitable assets is subject to punitive damages

in an appropriate amount upon a trial on the

issue.

(b) Upon an application to the chancery division of

the circuit court in which the Attorney General

alleges that a charitable trust needs to be

protected or the trustees of a charitable

organization or trust have engaged in a breach of

fiduciary duty toward the organization, and

injunctive relief and removal of the trustees is

sought, the Court shall exercise its discretion as

the equities require and may, as part of the

injunctive relief, and after a hearing where the

trustees shall have an opportunity to be heard,

appoint temporarily or permanently a receiver or

additional trustees to protect and operate the

organization and may temporarily, or as ultimate

relief for breach of duty or to protect the trust,

permanently remove any charitable organization's

trustees, corporate officers, directors and

members from office and appoint replacements to

protect the public interest.

Terrorist Acts

760 ILCS 55/16.5

Sec. 16.5. Terrorist acts.

(a)

Any person or organization subject to

registration under this Act, who knowingly acts to

further, directly or indirectly, or knowingly uses

charitable assets to conduct or further, directly or

indirectly, an act or actions as set forth in Article

29D of the Criminal Code of 1961[720 ILCS

5/29D-5 et seq.], is thereby engaged in an act or

actions contrary to public policy and antithetical to

charity, and all funds, assets, and records of the

person or organization shall be subject to

temporary and permanent injunction from use or

expenditure and the appointment of a temporary

and permanent receiver to take possession of all

of the assets and related records.

(b)

An ex parte action may be commenced by the

Attorney General, and, upon a showing of

probable cause of a violation of this Section or

Article 29D of the Criminal Code of 1961, an

immediate seizure of books and records by the

Attorney General by and through his or her

assistants or investigators or the Department of

State Police and freezing of all assets shall be

made by order of a court to protect the public,

protect the assets, and allow a full review of the

records.

(c)

Upon a finding by a court after a hearing that

a person or organization has acted or is in

violation of this Section, the person or

organization shall be permanently enjoined from

soliciting funds from the public, holding charitable

funds, or acting as a trustee or fiduciary within

Illinois. Upon a finding of violation all assets and

funds held by the person or organization shall be

forfeited to the People of the State of Illinois or

otherwise ordered by the court to be accounted

for and marshaled and then delivered to

charitable causes and uses within the State of

Illinois by court order.

(d)

A determination under this Section may be

made by any court separate and apart from any

criminal proceedings and the standard of proof

shall be that for civil proceedings.

(e)

Any knowing use of charitable assets to

conduct or further, directly or indirectly, an act or

actions set forth in Article 29D of the Criminal

Code of 1961 shall be a misuse of charitable

assets and breach of fiduciary duty relative to all

other Sections of this Act.

Penalties for Personal Use of

Charitable Assets

760 ILCS 55/17

Sec. 17. Any trustee who with malice and

without lawful authority, in violation of the trust

purposes or by intentional breach of fiduciary

duty, intentionally disburses or causes charitable

trust funds to be used for his personal benefit or

personal use in an amount in excess of $1,000

within a 5 year period is guilty of a Class 2 felony

and is subject to punitive damages up to or equal

to the amount misused and is subject to a civil

penalty of up to $50,000 for each intentional

knowing violation.

760 ILCS 55/18

Sec. 18. All copies of registration materials or

financial documents filed with the Attorney

General pursuant to the provisions of this Act

shall, when certified by him or by his designated

Assistant Attorney General, be taken and

received in all courts, public offices and official

bodies as business records of the filer.

760 ILCS 55/19

Sec. 19. There is created in the State Treasury

the Illinois Charity Bureau Fund. All fees and

penalties collected by the Attorney General

pursuant to this Act shall be deposited in the

Illinois Charity Bureau Fund in the State Treasury.

Moneys in the Fund shall be appropriated to the

Attorney General for charitable trust enforcement

purposes and dissemination of public information.

SOLICITATION FOR

CHARITY ACT

An Act to regulate solicitation and collection of

funds for charitable purposes, providing for

violations thereof, and making an appropriation

therefor. 225 ILCS 460/1 et seq.

225 ILCS 460/0.01

Sec. 0.01. Short title. This Act may be cited

as the Solicitation for Charity Act.

Definitions

225 ILCS 460/1

Sec. 1. The following words and phrases as

used in this Act shall have the following

meanings unless a different meaning is

required by the context.

(a)

"Charitable organization" means any

benevolent, philanthropic, patriotic, or

eleemosynary person or one purporting to be

such which solicits and collects funds for

charitable purposes and includes each local,

county, or area division within this State of

such charitable organization, provided such

local, county or area division has authority and

discretion to disburse funds or property

otherwise than by transfer to any parent

organization.

(b)

"Contribution" means the promise or grant

of any money or property of any kind or value,

including the promise to pay, except payments

by union members of an organization.

Reference to the dollar amount of

"contributions" in this Act means in the case of

promises to pay, or payments for merchandise

or rights of any other description, the value of

the total amount promised to be paid or paid for

such merchandise or rights and not merely that

portion of the purchase price to be applied to a

charitable purpose. Contribution shall not

include the proceeds from the sale of

admission tickets by any not-for-profit music or

dramatic arts organization which establishes,

by such proof as the Attorney General may

require, that it has received an exemption

under Section 501(c)(3) of the Internal

Revenue Code [26 U.S.C. § 501 et seq.] and

which is organized and operated for the

presentation of live public performances of

musical or theatrical works on a regular basis.

For purposes of this subsection, union member

dues and donated services shall not be

deemed contributions.

(c)

"Person" means any individual,

organization, group, association, partnership,

corporation, trust or any combination of them.

(d)

"Professional fund raiser" means any

person who for compensation or other

consideration, conducts, manages, or carries

on any solicitation or fund raising drive or

campaign in this State or from this State or on

behalf of a charitable organization residing

within this State for the purpose of soliciting,

receiving, or collecting contributions for or on

behalf of any charitable organization or any

other person, or who engages in the business

of, or holds himself out to persons in this State

as independently engaged in the business of

soliciting, receiving, or collecting contributions

for such purposes. A bona fide director, officer,

employee or unpaid volunteer of a charitable

organization shall not be deemed a

professional fund raiser unless the person is in

a management position and the majority of the

individual's salary or other compensation is

computed on a percentage basis of funds to be

raised, or actually raised.

(e)

"Professional fund raising consultant" means

any person who is retained by a charitable

organization or trustee for a fixed fee or rate that

is not computed on a percentage of funds to be

raised, or actually raised, under a written

agreement, to only plan, advise, consult, or

prepare materials for a solicitation of contributions

in this State, but who does not manage, conduct

or carry on a fundraising campaign and who does

not solicit contributions or employ, procure, or

engage any compensated person to solicit

contributions and who does not at any time have

custody or control of contributions. A volunteer,

employee or salaried officer of a charitable

organization or trustee maintaining a permanent

establishment or office in this State is not a

professional fundraising consultant. An attorney,

investment counselor, or banker who advises an

individual, corporation or association to make a

charitable contribution is not a professional

fundraising consultant as a result of the advice.

(f)

"Charitable purpose" means any charitable,

benevolent, philanthropic, patriotic, or

eleemosynary purpose.

(g)

"Charitable Trust" means any relationship

whereby property is held by a person for a

charitable purpose.

(h)

"Education Program Service" means any

activity which provides information to the public of

a nature that is not commonly known or facts

which are not universally regarded as obvious or

as established by common understanding and

which informs the public of what it can or should

do about a particular issue.

(i)

"Primary Program Service" means the program

service upon which an organization spends more

than 50% of its program service funds or the

program activity which represents the largest

expenditure of funds in the fiscal period.

(j)

"Professional solicitor" means any natural

person who is employed or retained for

compensation by a professional fund raiser to

solicit, receive, or collect contributions for

charitable purposes from persons in this State or

from this State or on behalf of a charitable

organization residing within this State.

(k)

"Program Service Activity" means the actual

charitable program activities of a charitable

organization for which it expends its resources.

(l)

"Program Service Expense" means the

expenses of charitable program activity and not

management expenses or fund raising expenses.

In determining Program Service Expense,

management and fund raising expenses may not

be included.

"Public Safety Personnel Organization" means

any person who uses any of the words "officer",

"police", "policeman", "policemen", "troopers",

"sheriff", "law enforcement", "fireman",

"firemen", "paramedic", or similar words in its

name or in conjunction with solicitations, or in

the title or name of a magazine, newspaper,

periodical, advertisement book, or any other

medium of electronic or print publication, and is

not a governmental entity. No organization may

be a Public Safety Personnel Organization

unless 80% or more of its voting members or

trustees are active or retired police officers,

police officers with disabilities, peace officers,

firemen, fire fighters, emergency medical

technicians - ambulance, emergency medical

technicians - intermediate, emergency medical

technicians - paramedic, ambulance drivers, or

other medical assistance or first aid personnel.

(M-5) "Public Safety Personnel" includes police

officers, peace officers, firemen, fire fighters,

emergency medical technicians - ambulance,

emergency medical technicians - intermediate,

emergency medical technicians - paramedic,

ambulance drivers, and other medical assistance

or first aid personnel.

(m)

"Trustee" means any person, individual,

group of individuals, association, corporation, not

for profit corporation, or other legal entity holding

property for or solicited for any charitable

purpose; or any officer, director, executive director

or other controlling persons of a corporation

soliciting or holding property for a charitable

purpose.

Registration of Charities

225 ILCS 460/2

Sec. 2. Registration; rules; penalties.

(a)

Every charitable organization, except as

otherwise provided in Section 3 of this Act [225

ILCS 460/3], 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:

The name of the organization and the name or

names under which it intends to solicit

contributions.

The names and addresses of the officers,

directors, trustees, and chief executive officer of

the organization.

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.

Where and when the organization was legally

established, the form of its organization and its

tax exempt status.

The purpose for which the organization is

organized and the purpose or purposes for which

the contributions to be solicited will be used.

The date on which the fiscal year of the

organization ends.

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.

The names and addresses of any professional

fund raisers who are acting or have agreed to act

on behalf of the organization.

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 [225 ILCS

460/4], 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 [225 ILCS

460/2], it shall file the annual report required

under Section 4 of this Act [225 ILCS 460/4] 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 [225 ILCS 460/4] 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

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 impose a civil

penalty of not less than $500 nor more than

$1,000 against the organization or trust estate

that failed to register or failed 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.

Exemptions

225 ILCS 460/3

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 [225 ILCS 460/2]:

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.

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

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.

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 [225 ILCS 460/3] where such

solicitation is confined to the membership of the

subsidiary, parent or superior organization.

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.

Any bona fide union, bona fide political

organization or bona fide political action

committee, which does not solicit funds for a

charitable purpose.

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 [225 ILCS 460/2].

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.

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.

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.

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 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.

Annual Reports of Charities

225 ILCS 460/4

Sec. 4. (a) Every charitable organization

registered pursuant to Section 2 of this Act [225

ILCS 460/2] which shall receive in any 12 month

period ending upon its established fiscal or

calendar year contributions in excess of

$300,000, 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 [225 ILCS 460/2] 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

$300,000, 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 [225 ILCS 460/2] in which such

organization would have been exempt from

registration pursuant to Section 3 of this Act [225

ILCS 460/3] 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

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.

Service of Process

225 ILCS 460/5

Sec. 5. Any charitable organization, trustee,

person, professional fund raiser or professional

solicitor, which or who solicits, receives, or

collects contributions in this State, but does not

maintain an office within the State or cannot be

located within the State shall be subject to service

of process, as follows:

(a)

By service thereof on its registered agent

within the State, or if there be no such registered

agent, then upon the person who has been

designated in the registration statement as having

custody of books and records within this State;

where service is effected upon the person so

designated in the registration statement a copy of

the process shall, in addition, be mailed to the

registrant's last known address;

(b)

When any corporate person has solicited,

received, or collected contributions in this State,

but maintains no office within the State, has no

registered agent within the State, and no

designated person having custody of its books

and records within the State, or when a registered

agent or person having custody of its books and

records within the State cannot be found as

shown by the return of the sheriff of the county in

which such registered agent or person having

custody of books and records has been

represented by the charitable organization or

person as maintaining an office, service may be

made by delivering to and leaving with the

Secretary of State, or with any deputy or clerk in

the corporation department of his office, three

copies thereof;

(c)

Following service upon the Secretary of State

the provisions of law relating to service of process

on foreign corporations shall thereafter govern;

(d)

Long arm service in accordance with law;

(e)

The solicitation, receipt, or collection of any

contribution within this State by any charitable

organization or any person shall be deemed to be

their agreement that any process against it or him

which is so served in accordance with the

provisions of this Section shall be of the same

legal force and effect as if served personally

within this State and that the courts of this State

shall have personal jurisdiction over such

organizations, persons and trustees;

(f)

Venue over persons required to be registered

under this Act shall be proper in any county where

the Attorney General accepts and maintains the

list of registrations. In furtherance of judicial

economy, actions filed for violation of this Act may

name multiple trustees, trusts, and organizations

in a single or joint action where those joined have

each engaged in similar conduct in violation of

this Act or where similar relief is sought against

those defendants for violation of this Act.

Professional Fund Raiser

Registration

225 ILCS 460/6

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 [ 225 ILCS 460/2], or for any

organization as described in Section 3 of this Act

[225 ILCS 460/3] 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

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, including all required schedules, 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.

(d-5) The calendar year written financial report

of every professional fund raiser who conducts,

manages, or carries on a fund raising

campaign involving the collection or resale of

any automobiles, motorcycles, other motor

vehicles, boats, yachts, or other water craft

collected in Illinois during the report year, and

the distribution of funds from the collection or

resale of such motor vehicles and water crafts

to the charitable organization, must include a

schedule detailing the following information for

each motor vehicle and water craft collected or

resold:

(1) The vehicle or hull identification number.

(2) The gross resale amount of the vehicle.

(3) The total amount distributed to the

charitable organization from the collection or

resale of the motor vehicle or water craft.

(4) Any and all fees, compensation, or other

consideration paid to or retained by the

professional fund raiser from the collection or

resale of the motor vehicle or water craft.

(5) The identity of any other professional fund

raiser that participated in the collection or resale

of the vehicle and any fees, compensation, or

other consideration paid to or retained by that

other professional fund raiser from the collection

or resale of the motor vehicle or water craft.

The calendar year written financial report of

every professional fund raiser who conducts,

manages, or carries on a fund raising campaign

involving the collection or resale of any

automobile, motorcycle, other motor vehicle, boat,

yacht, or other water craft collected in Illinois

during the report year, but who does not distribute

funds from such collection or resale to the

charitable organization, must include a schedule

detailing the following information for each motor

vehicle and water craft collected or resold:

(1) The vehicle or hull identification number.

(2) Any and all fees, compensation, or other

consideration paid to or retained by the

professional fund raiser from the collection or

resale of the motor vehicle or water craft.

(3) The identity of the person or entity involved in

the fund raising campaign who does distribute

funds from the collection or resale of the vehicle

to the charitable organization.

(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), (d), and (d-5) 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.

Professional Fundraising

Consultant Registration

225 ILCS 460/6.5

Sec. 6.5. Each person or entity that undertakes

activities as a professional fundraising consultant,

and that is not subject to the requirement to

shall register with the Attorney General, and

reconfirm the registration every 2 years or upon

such longer period as the Attorney General shall

prescribe. Application for registration or re-

registration shall be in writing, under oath in the

form prescribed by the Attorney General, and the

Attorney General shall mail registration forms to

the address of any registered professional

fundraising consultant. Such form shall contain an

affidavit to the effect that the professional

fundraising consultant has not or will not at any

time have custody or control of charitable

contributions. Failure to register pursuant to this

Section shall subject the party to a fine in an

amount not to exceed $100.

Professional Fund Raiser Contracts

225 ILCS 460/7

Sec. 7. (a) All contracts entered into by a

professional fund raiser to conduct a fundraising

campaign for a charitable purpose or charitable

organization must be in writing in conformity with

this Act. A true and correct copy of each contract

shall be filed by the professional fund raiser and

the charitable trustee or organization who is party

thereto with the Attorney General prior to the

conduct of a fundraising campaign under the

contract and annually by the professional fund

raiser at and with each reregistration. Each

professional fund raiser shall pay an annual filing

fee of $25 for each active contract filed or on file

under this Act. The fee shall be paid at initial and

annual re-registration. True and correct copies of

such contracts shall be kept on file in the offices

of the charitable organization and the professional

fund raiser during the term thereof and until the

expiration of a period of 3 years subsequent to the

date the solicitation of contributions provided for

therein actually terminates. Any person who

violates the provisions of this Section is guilty of

a Class A misdemeanor.

(b)

Any contract between a trust or charitable

organization and a professional fund raiser must

contain an estimated reasonable budget

disclosing the target amount of funds to be raised

over the contract period, the type and amount of

projected expenses related thereto, and the

amount projected to be paid to the charitable

organization. In addition, the contract shall

disclose the period of its duration, the geographic

scope for fundraising, describe the methods of

fundraising to be employed and provide

assurance of record keeping and accountability.

If the contract provides that the professional fund

raiser will retain or be paid a stated percentage of

the gross amount raised, an estimate of the target

gross amount to be raised and to be paid to

charity shall be stated in the contract. If the

contract provides for payment on an hourly rate

for fund raising, the total estimated hourly amount,

as well as the estimated number of hours to be

spent in fund raising, shall be stated.

(c)

All professional fund raiser contracts shall

be approved and accepted by a majority of the

charitable organization's trustees, and in the

case of a not for profit charitable corporation,

by its president and at least one member of its

Board of Directors, and the contract shall recite

said approval and acceptance by certification

by a trustee or the corporation's president.

(d)

All professional fund raiser contracts shall

disclose the amounts of all commissions,

salaries and fees charged by the fund raiser, its

agents, employees and solicitors and the

method used for computing such.

(e)

If the professional fund raiser, its agents,

solicitors or employees or members of the

families thereof own an interest in, manage or

are a supplier or vendor of fund raising goods

or services, the relationship shall be fully

disclosed in the contract, as well as the method

of determining the related supplier's or vendor's

charges.

(f)

If the professional fund raiser, in the course

of raising funds, is also providing charitable

education program services to the public, the

charitable organization shall approve or provide

to the fund raiser a written text of all public

educational program materials to be

disseminated when fund raising, copies of

which shall be maintained by the parties.

(g)

Any person who knowingly violates any

provision of this Section may be subject to

injunctive relief and removal from office.

Failure to file a contract and pay the prescribed

annual contract filing fee prior to conducting a

fund raiser for an organization shall in addition

to other relief subject the professional fund

raiser to a late filing fee of $1,000 for each

contract not timely filed.

(h)

A professional fund raiser or professional

solicitor that materially fails to comply with this

Section shall not be entitled to collect or retain

any compensation, commission, fee or salary

received in any campaign in which the violation

occurs. Upon application, by the Attorney

General to a court of competent jurisdiction, the

court may apply equitable considerations in

enforcing this Section.

Public Safety Personnel

Organization

225 ILCS 460/7.5

Sec. 7.5. Public Safety Personnel

Organization.

(a)

Every public safety personnel organization

that solicits contributions from the public shall,

in addition to other provisions of this Act:

(1)

Have as a condition of public solicitation a

provision included in every professional fund

raiser contract providing that the professional

fund raiser shall: (A) maintain and deliver to the

organization a list of the names and addresses

of all contributors and purchasers of

merchandise, goods, services, memberships,

and advertisements; (B) deliver the list of the

current year semiannually of each contribution

or purchase and specify the amount of the

contribution or purchase and the date of the

transaction; and (C) assign ownership of the

list to the public safety personnel organization.

The obligation required by this subdivision (1)

does not apply to a professional fund raiser under

the following conditions:

(i)

the professional fund raiser does not have

access to information to create and maintain the

list and the public safety personnel organization

obtained the information to create and maintain

the list under the fund raising campaign by other

means; or

(ii)

the public safety personnel organization and

the professional fund raiser agree to waive the

obligation required by this subdivision (1).

(2)

Act in accordance with Section 17-2 of the

criminal code of 1961 [720 ILCS 5/17-2], and

violation of this Section shall also be subject to

separate civil remedy hereunder.

(b)

Any professional fund raiser who willfully

violates the provisions of this Section may in

addition to other remedies be subject to a fine of

$2,000 for each violation, forfeiture of all

solicitation fees, and enjoined from operating and

soliciting the public.

(c)

This Section does not apply to a contract that

is in effect on the effective date of this

amendatory Act of the 91st General Assembly

(unless the contract is extended, renewed, or

revised on or after the effective date of this

amendatory Act of the 91st General Assembly, in

which case this Section applies to the contract on

and after the date on which the extension,

renewal, or revision takes place).

Professional Solicitor Registration

225 ILCS 460/8

Sec. 8. (a) No person shall act as a professional

solicitor in the employ of a professional fund

raiser required to register pursuant to Section 6 of

this Act [225 ILCS 460/6] before he has registered

with the Attorney General or after the expiration or

cancellation of such registration or any renewal

thereof. Application for registration or re-

registration shall be in writing, under oath, in the

form prescribed by the Attorney General. It shall

describe the method and amount the solicitor will

be paid and the charities for which the solicitor will

be soliciting. Such 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 for additional one year periods.

(b)

Any person who violates the provisions of this

Section is guilty of a Class A misdemeanor.

(c)

No person convicted of a felony may register

as a professional solicitor. No person convicted of

a misdemeanor involving fiscal wrongdoing,

breach of fiduciary duty, or a violation of this Act

may register as a professional solicitor.

(d)

Any person who violates the provisions of this

Section 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 a court may order that such

fees, salaries, commissions, or compensation

shall be forfeited and distributed for charitable

use.

Civil Actions by the Attorney General

225 ILCS 460/9

Sec. 9. (a) An action for violation of this Act may

be prosecuted by the Attorney General in the

name of the people of the State, and in any such

action, the Attorney General shall exercise all the

powers and perform all duties which the State's

Attorney would otherwise be authorized to

exercise or to perform therein.

(b)

This Act shall not be construed to limit or

restrict the exercise of the powers or the

performance of the duties of the Attorney General

which he otherwise is authorized to exercise or

perform under any other provision of law by

statute or otherwise.

(c)

Whenever the Attorney General shall have

reason to believe that any charitable organization,

professional fund raiser, or professional solicitor

is operating in violation of the provisions of this

Act, or if any of the principal officers of any

charitable organization has refused or failed, after

notice, to produce any records of such

organization or there is employed or is about to be

employed in any solicitation or collection of

contributions for a charitable organization any

device, scheme, or artifice to defraud or for

obtaining money or property by means of any

false pretense, representation or promise, or any

false statement has been made in any

application, registration or statement required to

be filed pursuant to this Act, in addition to any

other action authorized by law, he may bring in

the circuit court an action in the name, and on

behalf of the people of the State of Illinois against

such charitable organization and any other person

who has participated or is about to participate in

such solicitation or collection by employing such

device, scheme, artifice, false representation or

promise, to enjoin such charitable organization or

other person from continuing such solicitation or

collection or engaging therein or doing any acts in

furtherance thereof, or to cancel any registration

statement previously filed with the Attorney

General.

In connection with such proposed action the

Attorney General is authorized to take proof in the

manner provided in Section 2-1003 of the Code of

Civil Procedure [735 ILCS 5/2-1003].

(d)

Upon a showing by the Attorney General in an

application for an injunction that any person

engaged in the solicitation or collection of funds

for charitable purposes, either as an individual or

as a member of a copartnership, or as an officer

of a corporation or as an agent for some other

person, or copartnership or corporation, has been

convicted in this State or elsewhere of a felony or

of a misdemeanor where such felony or

misdemeanor involved the misappropriation,

misapplication or misuse of the money or property

of another, he may enjoin such persons from

engaging in any solicitation or collection of funds

for charitable purposes.

(e)

The Attorney General may exercise the

authority granted in this Section against any

charitable organization or person which or who

operates under the guise or pretense of being

an organization exempted by the provisions of

Section 3 and is not in fact an organization

entitled to such an exemption.

(f)

In any action brought under the provisions of

this Act, the Attorney General is entitled to

recover costs for the use of this State.

(g)

Any person who knowingly violates this

Section may be enjoined from such conduct,

removed from office, enjoined from acting for

charity and subject to punitive damages as

deemed appropriate by the circuit court.

(h)

Any person who violates this Section shall

not be entitled to keep or receive monies, fees,

salaries, commissions or any compensation, as

a result of the solicitations or fund raising

campaigns, and at the request of the Attorney

General such monies, fees, salaries,

commissions or any compensation shall be

forfeited and subject to distribution to charitable

use as a court of equity determines.

(i)

The Attorney General may publish an annual

report of all charitable organizations based on

information contained in reports filed hereunder

stating the amount of money each organization

received through solicitation and the amount of

money which was expended on program

service activity and the percentage of the

solicited assets that were expended on

charitable activity.

(j)

The Attorney General shall cancel the

registration of any organization, professional

fund raiser, or professional solicitor who

violates the provisions of this Section.

(k)

Any person who solicits financial

contributions or the sale of merchandise,

goods, services, memberships, or

advertisements in violation of the prohibitions

of subsection (d-1) of Section 11 of this Act, or

commits false personation, use of title, or

solicitation as defined by Section 17-2 of the

Criminal Code of 1961 [720 ILCS 5/17-2] shall,

in addition to any other penalties provided for

by law, be subject to civil remedy by cause of

action brought by the Attorney General or a

Public Safety Personnel Organization affected

by the violation.

In addition to equitable relief, a successful

claimant or the Attorney General shall recover

damages of triple the amount collected as a

result of solicitations made in violation of this

Act, plus reasonable attorney's fees and costs.

A plaintiff in any suit filed under this Section

shall serve a copy of all pleadings on the

Attorney General and the State's Attorney for

the county in which the suit is filed.

Administrative Subpoenas

225 ILCS 460/10

Sec. 10. When the Attorney General requires

the attendance of any persons, as provided in

Section 9 [225 ILCS 460/9], he shall issue an

order setting forth the time when and the place

where attendance is required and shall cause

the same to be served upon the person in the

manner provided for service of process in civil

cases at least 14 days before the date fixed for

attendance. Such order shall have the same force

and effect as a subpoena and, upon application of

the Attorney General, obedience to the order may

be enforced by any court having jurisdiction in the

county where the person receiving it resides or is

found, in the same manner as though the notice

were a subpoena. Such court may, in case of

contumacy or refusal to obey the order issued by

the Attorney General, issue an order requiring

such person to appear before the Attorney

General or to produce documentary evidence, if

so ordered, or to give evidence touching the

matter in question, and any failure to obey such

order of the court may be punished by that court

as a contempt upon itself. The investigation or

hearing may be made by or before any Assistant

Attorney General designated in writing by the

Attorney General to conduct such investigation or

hearing on his behalf. Witnesses ordered to

appear shall be paid the same fees and mileage

as are paid witnesses in the circuit courts of this

State, and witnesses whose depositions are taken

and the persons taking the same shall severally

be entitled to the same fees as are paid for like

services in the circuit courts of this State. The

Attorney General or the Assistant Attorney

General acting in his behalf is empowered to

administer the necessary oath or affirmation to

such witnesses.

Unauthorized Solicitations

225 ILCS 460/11

Sec. 11. (a) No person shall for the purpose of

soliciting contributions from persons in this State,

use the name of any other person, except that of

an officer, director or trustee of the charitable

organization by or for which contributions are

solicited, without the written consent of such other

persons.

(b)

A person shall be deemed to have used the

name of another person for the purpose of

soliciting contributions if such latter person's

name is listed on any stationery, advertisement,

brochure or correspondence in or by which a

contribution is solicited by or on behalf of a

charitable organization or his name is listed or

referred to in connection with a request for a

contribution as one who has contributed to,

sponsored or endorsed the charitable

organization or its activities.

(c)

Nothing contained in this Section shall prevent

the publication of names of contributors without

their written consents, in an annual or other

periodic report issued by a charitable organization

for the purpose of reporting on its operations and

affairs to its membership or for the purpose of

reporting contributions to contributors.

(d)

No charitable organization or professional fund

raiser soliciting contributions shall use a name,

symbol, or statement so closely related or similar

to that used by another charitable organization or

governmental agency that the use thereof would

tend to confuse or mislead the public.

(d-1) No Public Safety Personnel Organization

may by words in its name or in its solicitations

claim to be representing, acting on behalf of,

assisting, or affiliated with the public safety

personnel of a particular municipal, regional, or

other geographical area, unless: (1) 80% or

more of the organization's voting members and

trustees are persons who are actively

employed or retired or disabled from employment

within the particular municipal, regional, or other

geographical area stated in the name or

solicitation; (2) all of these members are vested

with the right to vote in the election of the

managing or controlling officers of the

organization either directly or through delegates;

and (3) the organization includes in any

solicitation the actual number of active or retired

police officers, or police officers with disabilities,

peace officers, firemen, fire fighters, emergency

medical technicians - ambulance, emergency

medical technicians - intermediate, emergency

medical technicians - paramedic, ambulance

drivers, or other medical assistance or first aid

personnel who are members of the organization

who are actively employed, retired, or disabled

from employment within the particular municipal,

regional, or other geographical area referenced

in the solicitation.

(d-2) No person or organization may have a

name or use a name using the words "officer",

"police", "policeman", "policemen", "trooper",

"sheriff", "law enforcement officer", "deputy",

"chief of police", or similar words therein unless

80% or more of its trustees and voting members

are active or retired law enforcement personnel

or law enforcement personnel with disabilities.

(d-3) No person or organization may have a

name or use a name using the words "fireman",

"firemen", "fire fighter", "fire chief", "paramedic",

or similar words therein unless 80% or more of

its trustees and voting members are active or

retired fire fighters or fire fighters with disabilities,

firemen, emergency medical technicians -

ambulance, emergency medical technicians -

intermediate, emergency medical technicians -

paramedic, ambulance drivers, or other medical

assistance or first aid personnel.

(d-4) No person by words in a Public Safety

Personnel Organization name or in solicitations

made therefor shall state he or she or his or her

organization is assisting or affiliated with a local,

municipal, regional, or other governmental body

or geographical area unless 80% of its trustees

and voting members are active or retired police

officers or police officers with disabilities, law

enforcement officials, firemen, fire fighters,

emergency medical technicians - ambulance,

emergency medical technicians - intermediate,

emergency medical technicians - paramedic,

ambulance drivers, or other medical assistance

or first aid personnel of the local, municipal,

regional, or other geographical area so named or

stated. Nothing in this Act shall prohibit a Public

Safety Personnel Organization from stating the

actual number of members it has in any

geographical area.

(e)

Any person or organization that willfully

violates the provisions of this Section is guilty of

a Class A misdemeanor. Any person or

organization that willfully violates the provisions of

this Section may in addition to other remedies be

subject to a fine of $2,000 for each violation, shall

be subject to forfeiture of all solicitation fees, and

shall be enjoined from operating as a fund raiser

and soliciting the public for fundraising purposes.

Registration not an Endorsement

225 ILCS 460/12

Sec. 12. Registration under this Act shall not be

deemed to constitute an endorsement by the

State of Illinois of the charitable organization,

professional fund raiser, or professional

solicitor so registered. It shall be unlawful for

any charitable organization, professional fund

raiser, or professional solicitor to represent,

directly or indirectly, for the purpose of

solicitation and collection of funds for charitable

purposes, in any form or manner whatsoever

by advertising or otherwise, that it has

registered or otherwise complied with the

provisions of this Act. The Attorney General

may, in his discretion, cancel the registration of

any organization, professional fund raiser, or

professional solicitor which or who violates the

provisions of this Section. The Attorney

General shall, by rule, set forth the standards

by which he shall make this determination.

Such standards shall be stated as precisely

and clearly as practicable, to inform fully those

persons affected.

225 ILCS 460/13

Sec. 13. The Attorney General may enter

into reciprocal agreements with a like authority

of any other State or States for the purpose of

exchanging information made available to the

Attorney General or to such other like authority.

225 ILCS 460/14

Sec. 14. If any provision of this Act, or the

application of such provision to any persons,

body or circumstances shall be held invalid, the

remainder of this Act, or the application of such

provision to persons, bodies or circumstances

other than those as to which it shall have been

held invalid, shall not be affected thereby.

Fundraising Requirements

225 ILCS 460/15

Sec. 15. (a) Trustees of charitable trusts,

organizations and corporations have a duty to

supervise fund raising activities to ensure that

contributions are adequately protected and

devoted to the proper purpose and that

statements or representations made during

solicitations to the public are true and correct.

(b)

If any person, including a charitable

organization, a professional fund raiser or a

professional solicitor, in conducting a fund

raising campaign for a charitable organization

or for charitable or ostensibly charitable

purposes:

(1)

Represents that tickets for a show or goods

or services shall be made available to children,

disadvantaged persons or for a like charitable

purpose, and that such will be distributed by

the persons soliciting or the organization, the

tickets shall be held in trust for the use as a

charitable trust and adequate records and

accounting for same maintained.

(2)

Disseminates an educational message or

materials to the public with or in the course of

fund raising activities and allocates the costs

between fund raising and education programs,

he shall prepare and maintain written

worksheets of how the allocation is made and the

reasoning behind the allocation.

(3)

Sells or offers for sale advertising space in a

publication or ad book or periodical, he shall

maintain adequate records for all ads sold and

written document receipts shall provide the name

of the organization involved, the publication's

name, and its proposed date of publication, as

well as the number of copies proposed to be

printed or a reasonable estimate.

(4)

Engages in the dissemination of education

program services as a part of or in physical

conjunction with its solicitation of charitable

contributions, it shall record and report all

expenses incurred as fund raising unless it

allocates the expenses between fund raising and

other functions pursuant to professional

accounting standards and provisions as

promulgated and set forth by the American

Institute of Certified Public Accountants or the

Financial Accounting Standards Board from time

to time in their official publications. For purposes

of making all such allocations, the factors and

considerations utilized must be reduced to writing.

(5)

Engages in any public solicitation and therein

purports to relate the purpose or purposes for

which the funds are solicited, such shall then be

fully and accurately identified to the prospective

donor. If a charitable organization whose

purposes include the rendering of noneducational

program services intends to expend or budget

more than 50% of its program service

expenditures for informing or educating the public

and the funds being solicited will be used for such

purpose, the donor at his or her request must be

told that a primary use of the program funds will

be for public education.

(6)

Collects and takes control or possession of

contributions made for a charitable purpose or to

a charitable organization, they owe a fiduciary

duty to the public to deal with the said

contributions in an appropriate fiduciary manner,

to keep complete books and records for at least 3

years, to keep records in a comprehensive

manner to permit accurate reporting and auditing

as required by law, and to not commingle funds

with noncharitable funds and to be able to

account for the funds, and will be subject to

surcharge for any funds not accounted for or

wasted, in addition to other remedies available at

equity. A presumption shall exist that

expenditures not properly documented and

disclosed by records were not properly spent.

(c)

Any person who violates this Section may be

enjoined from continuing to act on behalf of the

charity for a period of up to 5 years and if the

violation is intentional or willful they shall not be

entitled to keep or receive fees, salaries,

commissions or any compensation as a result of

or on account of the solicitations or fund raising

campaigns. At the request of the Attorney General

a court shall order that the fees, salaries,

commissions, or compensation shall be forfeited

and used for a charitable use as the court

determines.

Misuse of Charitable Assets

225 ILCS 460/16

Sec. 16. (a) Any person who intentionally in

breach of fiduciary duty misuses charitable assets

is subject to punitive damages in an appropriate

amount upon a trial on the issue.

(b) Upon an application to a court of competent

jurisdiction, in which the Attorney General alleges

that a charitable trust needs to be protected or the

trustees of a charitable organization or trust have

engaged in a breach of fiduciary duty toward the

organization, and he seeks injunctive relief and

removal of such trustees, the Court may, as part

of the injunctive relief, and after a hearing where

such trustees shall have an opportunity to be

heard, appoint temporarily or permanently a

receiver or additional trustees to protect and

operate the organization and may temporarily, or

as ultimate relief for breach of duty or to protect

the trust, permanently remove any charitable

organization's trustees, corporate officers,

directors and members from office and appoint

replacements to protect the public interest.

Terrorist Acts

225 ILCS 460/16.5

Sec. 16.5. Terrorist acts.

(a)

Any person or organization subject to

registration under this Act, who knowingly acts to

further, directly or indirectly, or knowingly uses

charitable assets to conduct or further, directly or

indirectly, an act or actions as set forth in Article

29D of the Criminal Code of 1961[720 ILCS

5/29D-5 et seq.], is thereby engaged in an act or

actions contrary to public policy and antithetical to

charity, and all funds, assets, and records of the

person or organization shall be subject to

temporary and permanent injunction from use or

expenditure and the appointment of a temporary

and permanent receiver to take possession of all

of the assets and related records.

(b)

An ex parte action may be commenced by the

Attorney General, and, upon a showing of

probable cause of a violation of this Section or

Article 29D of the Criminal Code of 1961, an

immediate seizure of books and records by the

Attorney General by and through his or her

assistants or investigators or the Department of

State Police and freezing of all assets shall be

made by order of a court to protect the public,

protect the assets, and allow a full review of the

records.

(c)

Upon a finding by a court after a hearing that

a person or organization has acted or is in

violation of this Section, the person or

organization shall be permanently enjoined from

soliciting funds from the public, holding charitable

funds, or acting as a trustee or fiduciary within

Illinois. Upon a finding of violation all assets and

funds held by the person or organization shall be

forfeited to the People of the State of Illinois or

otherwise ordered by the court to be accounted

for and marshaled and then delivered to

charitable causes and uses within the State of

Illinois by court order.

(d)

A determination under this Section may be

made by any court separate and apart from any

criminal proceedings and the standard of proof

shall be that for civil proceedings.

(e)

Any knowing use of charitable assets to

conduct or further, directly or indirectly, an act or

actions set forth in Article 29D of the Criminal

Code of 1961 shall be a misuse of charitable

assets and breach of fiduciary duty relative to

all other Sections of this Act.

Public Disclosure in Solicitations

225 ILCS 460/17

Sec. 17. In any solicitation to the public for a

charitable organization by a professional fund

raiser or professional solicitor:

(a)

The public member shall be promptly

informed by statement in verbal

communications and by clear and

unambiguous disclosure in written materials

that the solicitation is being made by a paid

professional fund raiser. The fund raiser,

solicitor, and materials used shall also provide

the professional fund raiser's name and a

statement that contracts and reports regarding

the charity are on file with the Illinois Attorney

General and additionally, in verbal

communications, the solicitor's true name must

be provided.

(b)

If the professional fund raiser employs or

uses a contract which provides that it will be

paid or retain a certain percentage of the gross

amount of each contribution or shall be paid an

hourly rate for solicitation, or the contract

provides the charity will receive a fixed amount

or a fixed percentage of each contribution, the

professional fund raiser and person soliciting

shall disclose to persons being solicited the

percentage amount retained or hourly rate paid

to the professional fund raiser and solicitor

pursuant to the contract, and the amount or the

percentage to be received by the charitable

organization from each contribution, if such

disclosure is requested by the person solicited.

(c)

Any person or professional fund raiser,

professional solicitor soliciting charitable

contributions from the public on behalf of a

public safety personnel organization shall not

misrepresent that they are in fact a law

enforcement person, firefighter, or member of

the organization for whom the contributions are

being raised and if requested by the person

solicited they shall promptly provide their actual

name, the exact legal name of the organization

with which they are employed and its correct

address, as well as, the exact name of the

charitable organization.

Statutory Misrepresentations

225 ILCS 460/18

Sec. 18. In any solicitation of contributions

for a charitable organization it shall be deemed

a misrepresentation of fact if any person:

(a)

Who is a professional fund raiser or

professional solicitor fails in any solicitations to

state and disclose to persons solicited that they

are paid professional fund raisers or solicitors

if the person being solicited asks if they are

paid callers;

(b)

Who is relating the projected use of

solicited charitable funds and knowingly falsely

states in a material fashion the charitable

purposes for which the charitable funds collected

are to be used or are being used or fails to

disclose the primary program service to which

such funds are known to be devoted;

(c)

Who is a professional fund raiser or

professional solicitor and refuses or fails to

supply, upon the request of a person being

solicited, the hourly rate charge or the estimated

percentage or actual percentage, if known, which

is to be paid to or retained by the professional

fund raiser and solicitor and the amount to be

paid to the charitable organization under the fund

raising contract then in effect and the amount to

be paid to the charitable organizations;

(d)

Falsely states or represents that they are a

member of a charitable organization or that they

are a policeman, sheriff, law enforcement person,

or fireman;

(e)

Who by use of an organization's name or by its

appeal, represents that solicited funds are for

research or relates or implies that they will be

used to alleviate conditions or to eliminate a

condition, or for another specified purpose, but in

fact the funds being solicited are used primarily in

educating the public and the person soliciting fails

therewith also to disclose that the primary

purpose of the solicited funds is education;

(f)

Who is a professional fund raiser or

professional solicitor and who makes a solicitation

for a contribution for or on behalf of a charitable

organization without authorization by or a contract

with the charitable organization;

(g)

Any paid person who is soliciting charitable

funds who makes an intentional

misrepresentation as to the use of solicited funds

is subject to punitive damages upon a trial on the

issue.

Penalties for Personal Use of

Charitable Assets

225 ILCS 460/19

Sec. 19. Any trustee or person who without

lawful authority intentionally disburses or causes

the use of charitable trust funds over which he is

a fiduciary to be used for his personal benefit or

for his own personal use in an amount in excess

of $1,000 within a 3 year period is guilty of a

Class 2 felony and is subject to civil punitive

damages up to or equal to the amount used and

a civil penalty fine of up to $50,000 for each

intentional violation.

225 ILCS 460/20

Sec. 20. All copies of registration materials or

financial documents filed with the Attorney

General pursuant to the provisions of this Act

shall, when certified by him or by his designated

Assistant Attorney General, be taken and

received in all courts, public offices and official

bodies as business records of the filer.

225 ILCS 460/21

Sec. 21. Illinois Charity Bureau Fund. The

court in its discretion may place costs, fines, and

penalties collected pursuant to this Act into the

Illinois Charity Bureau Fund created in Section 19

of the Charitable Trust Act [760 ILCS 55/19] and

such shall be expended by the Attorney General

for the enforcement and administration of this Act

to protect the public interest in charitable funds

and subject to transfer by appropriation of said

funds to the Attorney General's Grant Fund at the

Attorney General's direction.

225 ILCS 460/22

Sec. 22. All fees and penalties collected by the

Attorney General pursuant to this Act shall be

paid and deposited into the Illinois Charity Bureau

Fund in the State Treasury. Moneys in the Fund

shall be appropriated to the Attorney General for

charitable trust enforcement purposes as an

addition to other appropriated funds and be used

by the Attorney General to provide the public with

information concerning charitable trusts and

organizations and for charitable trust enforcement

activities.

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 as

a permanent body. Members shall serve at the

pleasure of the Attorney General or for such terms

as the Attorney General may designate. This

Advisory Council shall study issues of charitable

giving, volunteerism, and fundraising in this State.

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.

SECTION 17-2 OF THE

ILLINOIS CRIMINAL CODE

FALSE PERSONATION; USE OF TITLE;

SOLICITATION; CERTAIN ENTITIES.

720 ILCS 5/17-2

Sec. 17-2. False personation; solicitation.

(a) False personation; solicitation.

(1) A person commits a false personation when he

or she knowingly and falsely represents himself or

herself to be a member or representative of any

veterans' or public safety personnel organization or

a representative of any charitable organization, or

when he or she knowingly exhibits or uses in any

manner any decal, badge or insignia of any

charitable, public safety personnel, or veterans'

organization when not authorized to do so by the

charitable, public safety personnel, or veterans'

organization. "Public safety personnel organization"

has the meaning ascribed to that term in Section 1

of the Solicitation for Charity Act.

(2) A person commits a false personation when he

or she knowingly and falsely represents himself or

herself to be a veteran in seeking employment or

public office. In this paragraph, "veteran" means a

person who has served in the Armed Services or

Reserve Forces of the United States.

(2.1) A person commits a false personation

when he or she knowingly and falsely

represents himself or herself to be:

(A) an active-duty member of the Armed

Services or Reserve Forces of the United

States or the National Guard or a veteran of

the Armed Services or Reserve Forces of the

United States or the National Guard; and

(B) obtains money, property, or another

tangible benefit through that false

representation. In this paragraph, "member

of the Armed Services or Reserve Forces of

the United States" means a member of the

United States Navy, Army, Air Force, Marine

Corps, or Coast Guard; and "veteran" means

a person who has served in the Armed

Services or Reserve Forces of the United

States or the National Guard.

(2.5) A person commits a false personation

when he or she knowingly and falsely

represents himself or herself to be:

(A) another actual person and does an act in

such assumed character with intent to

intimidate, threaten, injure, defraud, or to

obtain a benefit from another; or

(B) a representative of an actual person or

organization and does an act in such false

capacity with intent to obtain a benefit or to

injure or defraud another.

(3) No person shall knowingly use the words

"Police", "Police Department", "Patrolman",

"Sergeant", "Lieutenant", "Peace Officer",

"Sheriff's Police", "Sheriff", "Officer", "Law

Enforcement", "Trooper", "Deputy", "Deputy

Sheriff", "State Police", or any other words to the

same effect (i) in the title of any organization,

magazine, or other publication without the

express approval of the named public safety

personnel organization's governing board or (ii)

in combination with the name of any state, state

agency, public university, or unit of local

government without the express written

authorization of that state, state agency, public

university, or unit of local government.

(4) No person may knowingly claim or

represent that he or she is acting on behalf of

any public safety personnel organization when

soliciting financial contributions or selling or

delivering or offering to sell or deliver any

merchandise, goods, services, memberships,

or advertisements unless the chief of the police

department, fire department, and the corporate

or municipal authority thereof, or the sheriff has

first entered into a written agreement with the

person or with an organization with which the

person is affiliated and the agreement permits

the activity and specifies and states clearly and

fully the purpose for which the proceeds of the

solicitation, contribution, or sale will be used.

(5) No person when soliciting financial

contributions or selling or delivering or offering

to sell or deliver any merchandise, goods,

services, memberships, or advertisements may

claim or represent that he or she is representing

or acting on behalf of any nongovernmental

organization by any name which includes

"officer", "peace officer", "police", "law

enforcement", "trooper", "sheriff", "deputy",

"deputy sheriff", "State police", or any other word

or words which would reasonably be understood to

imply that the organization is composed of law

enforcement personnel unless:

(A) the person is actually representing or acting

on behalf of the nongovernmental organization;

(B) the nongovernmental organization is

controlled by and governed by a membership of

and represents a group or association of active

duty peace officers, retired peace officers, or

injured peace officers; and

sale or the offers to sell any merchandise,

goods, services, memberships, or

advertisements, a written contract between the

soliciting or selling person and the

nongovernmental organization, which specifies

and states clearly and fully the purposes for

which the proceeds of the solicitation,

contribution, or sale will be used, has been

entered into.

(6) No person, when soliciting financial

contributions or selling or delivering or offering to

sell or deliver any merchandise, goods, services,

memberships, or advertisements, may knowingly

claim or represent that he or she is representing or

acting on behalf of any nongovernmental

organization by any name which includes the term

"fireman", "fire fighter", "paramedic", or any other

word or words which would reasonably be

understood to imply that the organization is

composed of fire fighter or paramedic personnel

unless:

(A) the person is actually representing or acting

on behalf of the nongovernmental organization;

(B) the nongovernmental organization is

controlled by and governed by a membership of

and represents a group or association of active

duty, retired, or injured fire fighters (for the

purposes of this Section, "fire fighter" has the

meaning ascribed to that term in Section 2 of the

Illinois Fire Protection Training Act) or active

duty, retired, or injured emergency medical

technicians - ambulance, emergency medical

technicians - intermediate, emergency medical

technicians - paramedic, ambulance drivers, or

other medical assistance or first aid personnel;

and

sale or delivery or the offers to sell or deliver any

merchandise, goods, services, memberships, or

advertisements, the soliciting or selling person

and the nongovernmental organization have

entered into a written contract that specifies and

states clearly and fully the purposes for which

the proceeds of the solicitation, contribution, or

sale will be used.

(7) No person may knowingly claim or represent

that he or she is an airman, airline employee,

airport employee, or contractor at an airport in

order to obtain the uniform, identification card,

license, or other identification paraphernalia of an

airman, airline employee, airport employee, or

contractor at an airport.

(8) No person, firm, copartnership, or corporation

(except corporations organized and doing

business under the Pawners Societies Act) shall

knowingly use a name that contains in it the words

"Pawners' Society".

(b) False personation; public officials and

employees. A person commits a false personation if

he or she knowingly and falsely represents himself

or herself to be any of the following:

(1) An attorney authorized to practice law for

purposes of compensation or consideration. This

paragraph (b)(1) does not apply to a person who

unintentionally fails to pay attorney registration fees

established by Supreme Court Rule.

(2) A public officer or a public employee or an

official or employee of the federal government.

(2.3) A public officer, a public employee, or an

official or employee of the federal government, and

the false representation is made in furtherance of

the commission of felony.

(2.7) A public officer or a public employee, and the

false representation is for the purpose of

effectuating identity theft as defined in Section 16-

30 of this Code.

(3) A peace officer.

(4) A peace officer while carrying a deadly

weapon.

(5) A peace officer in attempting or committing a

felony.

(6) A peace officer in attempting or committing a

forcible felony.

(7) The parent, legal guardian, or other relation of

a minor child to any public official, public employee,

or elementary or secondary school employee or

administrator.

(7.5) The legal guardian, including any

representative of a State or public guardian, of a

person with a disability appointed under Article XIa

of the Probate Act of 1975.

(8) A fire fighter.

(9) A fire fighter while carrying a deadly weapon.

(10) A fire fighter in attempting or committing a

felony.

(11) An emergency management worker of any

jurisdiction in this State.

(12) An emergency management worker of any

jurisdiction in this State in attempting or committing

a felony. For the purposes of this subsection (b),

"emergency management worker" has the meaning

provided under Section 2-6.6 of this Code.

(b-5) The trier of fact may infer that a person falsely

represents himself or herself to be a public officer or

a public employee or an official or employee of the

federal government if the person:

(1) wears or displays without authority any

uniform, badge, insignia, or facsimile thereof by

which a public officer or public employee or official

or employee of the federal government is lawfully

distinguished; or

(2) falsely expresses by word or action that he or

she is a public officer or public employee or official

or employee of the federal government and is acting

with approval or authority of a public agency or

department.

name.

(1) A company, association, or individual

commits fraudulent advertisement of a

corporate name if he, she, or it, not being

incorporated, puts forth a sign or advertisement

and assumes, for the purpose of soliciting

business, a corporate name.

(2) Nothing contained in this subsection (c)

prohibits a corporation, company, association,

or person from using a divisional designation or

trade name in conjunction with its corporate

name or assumed name under Section 4.05 of

the Business Corporation Act of 1983 or, if it is

a member of a partnership or joint venture, from

doing partnership or joint venture business

under the partnership or joint venture name.

The name under which the joint venture or

partnership does business may differ from the

names of the members. Business may not be

conducted or transacted under that joint venture

or partnership name, however, unless all

provisions of the Assumed Business Name Act

have been complied with. Nothing in this

subsection (c) permits a foreign corporation to

do business in this State without complying with

all Illinois laws regulating the doing of business

by foreign corporations. No foreign corporation

may conduct or transact business in this State

as a member of a partnership or joint venture

that violates any Illinois law regulating or

pertaining to the doing of business by foreign

corporations in Illinois.

(3) The provisions of this subsection (c) do

not apply to limited partnerships formed under

the Revised Uniform Limited Partnership Act or

under the Uniform Limited Partnership Act

(2001).

(d) False law enforcement badges.

(1) A person commits false law enforcement

badges if he or she knowingly produces, sells,

or distributes a law enforcement badge without

the express written consent of the law

enforcement agency represented on the badge

or, in case of a reorganized or defunct law

enforcement agency, its successor law

enforcement agency.

(2) It is a defense to false law enforcement

badges that the law enforcement badge is used

or is intended to be used exclusively: (i) as a

memento or in a collection or exhibit; (ii) for

decorative purposes; or (iii) for a dramatic

presentation, such as a theatrical, film, or

television production.

(e) False medals.

(1) A person commits a false personation if he

or she knowingly and falsely represents himself

or herself to be a recipient of, or wears on his or

her person, any of the following medals if that

medal was not awarded to that person by the

United States Government, irrespective of

branch of service: The Congressional Medal of

Honor, The Distinguished Service Cross, The

Navy Cross, The Air Force Cross, The Silver

Star, The Bronze Star, or the Purple Heart.

(2) It is a defense to a prosecution under

paragraph (e)(1) that the medal is used, or is

intended to be used, exclusively:

(A) for a dramatic presentation, such as a

theatrical, film, or television production, or a

historical re-enactment; or

(B) for a costume worn, or intended to be worn,

by a person under 18 years of age.

(f) Sentence.

(1) A violation of paragraph (a)(8) is a petty

offense subject to a fine of not less than $5 nor

more than $100, and the person, firm,

copartnership, or corporation commits an

additional petty offense for each day he, she, or it

continues to commit the violation. A violation of

paragraph (c)(1) is a petty offense, and the

company, association, or person commits an

additional petty offense for each day he, she, or it

continues to commit the violation. A violation of

paragraph (a)(2.1) or subsection (e) is a petty

offense for which the offender shall be fined at

least $100 and not more than $200.

(2) A violation of paragraph (a)(1), (a)(3), or

(b)(7.5) is a Class C misdemeanor.

(3) A violation of paragraph (a)(2), (a)(2.5),

(a)(7), (b)(2), or (b)(7) or subsection (d) is a Class

A misdemeanor. A second or subsequent violation

of subsection (d) is a Class 3 felony.

(4) A violation of paragraph (a)(4), (a)(5), (a)(6),

(b)(1), (b)(2.3), (b)(2.7), (b)(3), (b)(8), or (b)(11) is

a Class 4 felony.

(5) A violation of paragraph (b)(4), (b)(9), or

(b)(12) is a Class 3 felony.

(6) A violation of paragraph (b)(5) or (b)(10) is a

Class 2 felony.

(7) A violation of paragraph (b)(6) is a Class 1

felony.

(g) A violation of subsection (a)(1) through (a)(7) or

subsection (e) of this Section may be

accomplished in person or by any means of

communication, including but not limited to the use

of an Internet website or any form of electronic

communication.

Form AG990-IL.INS

ILLINOIS CHARITABLE ORGANIZATION

KWAME RAOUL

Revised 01/19

FORM AG990-IL FILING INSTRUCTIONS

ATTORNEY GENERAL

A COMPLETE ANNUAL FINANCIAL REPORT (AG990-IL with all required attachments and applicable fees) is due within six months

after the organization's fiscal year end. A REPORT WILL NOT BE CONSIDERED FILED UNLESS IT IS COMPLETE. A COMPLETE

ANNUAL FINANCIAL REPORT must include the following items:

$15 Annual Filing Fee - Make check or money order payable to "ILLINOIS CHARITY BUREAU FUND." An annual financial report

submitted without proper fees will not be considered filed.

•

Soliciting Organizations are required to pay a $15 Annual Report Filing Fee if gross contributions are greater than $15,000 or assets are greater than

$25,000.

•

Trust Organizations registered under the Charitable Trust Act only are required to pay a $15 Annual Report Filing Fee if gross revenues or

assets are greater than $25,000.

Form AG990-IL - Complete all sections and line items applicable to the organization. See 6 below for Simplified Filing Option for Small Organizations.

An annual financial report submitted with an incomplete Form AG 990-IL will not be considered filed.

CO#: Include CO# on the Form AG 990-IL. Correct any incorrect name or address information if using preprinted form and highlight any

corrections.

SIGNATURES: The Form AG 990-IL must be signed by two different officers (president or other authorized officer and the chief fiscal officer) or

by two trustees. One signature shall be accepted if there is only one trustee. A Form AG 990-IL without required signatures is incomplete.

Part I, Line D: Report "contributions" as defined by the Solicitation for Charity Act. The Solicitation for Charity Act defines "contributions" to include

the gross amounts of cash donations as well as gross sums paid by the public for merchandise, special events, rights or services of the organization. A

Form AG 990-IL that fails to report "contributions" as defined by the Solicitation for Charity Act is incomplete. (A complete definition of

"contribution" under the Solicitation for Charity Act is shown on the back of these instructions.)

Part II, Line J1: Report all program costs associated with a combined fund-raising appeal to the extent such was allocated to Charitable Program Service

Expense and entered on line J as Charitable Program Service Expense. The amount should equal the amount reported on the back of the AG990-IL form,

question 7b(ii). You must have and maintain the documentation to support the allocations made.

Part III, Line S: Report fees paid to all fund-raising consultants during the year. Attach a list identifying each consultant by name and address and

specify the amount paid to each.

Part V, Lines W, X, Y Program Service Codes: Select up to three codes from those on back of these instructions which best describe the program

service(s) for which the organization spent funds.

IRS Return or Report - IRS form 990 (excluding Schedule B), 990EZ (excluding Schedule B), 990PF, 1041, 1120 or other, must be attached if required by

the IRS. If the organization did not file a federal return or report, attach explanation. An annual financial report submitted without the required federal

return or report is incomplete.

Audited Financial Statements – must be attached by a public charity if contributions exceeded $300,000 or if the public charity raised contributions in

excess of $25,000 through the services of professional fund-raiser. The Solicitation for Charity Act defines "contributions" to include the gross amounts of cash

donations as well as gross sums paid by the public for merchandise, special events, rights or services of the organization. (A complete definition of

"contribution" under the Solicitation for Charity Act is shown on the back of these instructions.) An annual financial report without required audited

financial statements is incomplete.

Form IFC - Report of Individual Fundraising Campaign - If the organization used a paid professional fund-raiser, a separate Form IFC is required for each

campaign, and each must be signed by both the professional fund-raiser and an officer or director of the organization. An annual financial report without the

required Form IFC is incomplete.

Simplified Filing Option for Small Organizations:

•

Soliciting Organizations with gross contributions and assets of $25,000 or less during the fiscal year may file an AG990-IL with all required signatures,

disclosing only total revenue, total expenditures, and assets at the fiscal year end (Line A, G and O of the AG990-IL). A $15 annual report filing fee is due

only if gross contributions were more than $15,000.

•

Trust Organizations registered solely under the Charitable Trust Act with gross revenue and assets of $25,000 or less during the fiscal year may file

an AG990-IL with all required signatures, disclosing only total revenue, total expenditures, and assets at the fiscal year end (Line A, G and O of the

AG990-IL). A $15 annual report filing fee is not due.

60 DAY EXTENSION and LATE REPORT FILING FEES:

•

A 60 day extension will be granted only upon the filing of a written request with the Attorney General prior to the report due date.

•

If a proper and complete annual report (AG990-IL with all required attachments and applicable fees) or a written extension request is not received prior to

the due date, a $100 late report filing fee (checks payable to the “Illinois Charity Bureau Fund”) is required by Illinois law. The report cannot be accepted

and will not be considered filed if it is late and the late fee is not paid.

Submit the complete annual financial report (AG990-IL with all required attachments and applicable fees) or written extension request to:

OFFICE OF THE ATTORNEY GENERAL

CHARITABLE TRUST BUREAU

ATTN: ANNUAL REPORT SECTION

100 WEST RANDOLPH STREET, 11th FLOOR

CHICAGO, ILLINOIS 60601-3175

(312) 814-2595

Section 1(b) of the Solicitation for Charity Act defines contributions as follows: “Contribution”, means the promise or grant of any money

or property of any kind or value, including the promise to pay, except payments by union members of an organization. Reference to the dollar

amount of "contributions" in this Act means in the case of promises to pay, or payments for merchandise or rights of any other description, the

value of the total amount promised to be paid or paid for such merchandise or rights and not merely that portion of the purchase price to be

applied to a charitable purpose. Contribution shall not include the proceeds from the sale of admission tickets by any not-for-profit music or

dramatic arts organization which establishes, by such proof as the Attorney General may require, that it has received an exemption under Section

501(c)(3) of the Internal Revenue Code [26 U.S.C. @ 501 et seq.] and which is organized and operated for the presentation of live public

performances of musical or theatrical works on a regular basis. For purposes of this subsection, union member dues and donated services shall

not be deemed contributions. (225 ILCS 460/1(b))

Part V Lines W, X, Y Program Service Codes: Charitable activity code numbers (select up to three codes which best describe the

activity and/or the program service for which your organization expends funds). Enter in Part V of the first page of the AG 990-

IL. Enter first the code which most accurately identifies you.

SCHOOLS

001 Pre-School

002 Elementary or High Schools

003 College & Universities

004 Trade Schools, Vocational Schools & Job Training

PUBLIC EDUCATION OTHER THAN SCHOOLS

010 Public Education by Mail

011 Seminars and Conferences

012 Other Educational Materials for the Public

RELIGIOUS ACTIVITIES

020 Church, Synagogue, etc.

021 Missionary Activities

CULTURAL AND HISTORICAL

030 Performing Arts (Ballet, Symphony, Theatre)

031 Art and/or Literature

032 Museum

033 Library

034 Historical Societies

RECREATIONAL & SOCIAL ACTIVITIES

040 Youth

041 Adult

042 Music Groups & Youth Bands

043 Youth Clubs (i.e. Boy Scouts, Girl Scouts, 4-H, Boys Club, etc.)

044 Community Recreational facilities

RESEARCH

050 Scientific Research

051 Heart Disease Research

052 Cancer Research

053 Other Medical and Disease Research

HEALTH FACILITIES

060 Hospitals

061 Nursing Homes

062 Health Clinics

063 HMO

064 Hospice

ANIMAL WELFARE

070 Animal Shelter, Humane Society and/or Anti-cruelty

Society

071 Wildlife Preservation & Shelter for Wildlife

ENVIRONMENT

080 Preservation & Conservation of Natural Resources

081 Prevention of Pollution

CIVIC ACTIVITIES

090 Legal Services and legal Aid

091 Civil Rights Activities

PUBLIC POLICY

100 Legislative and Political Activities

101 Lobbying & Advocacy

102 Consumer Interest Group (non-education)

103 Peace

104 Other Public Policy

HUMAN SERVICES

110 Day Care Centers

111 Family and Individual Services

112 Neighborhood and Community Development

113 Nursing Services (i.e. Home Care)

114 Programs for Minority Advocacy

115 Programs for Needy Children

116 Rescue and Emergency Service

117 Services for the Aged

118 Services for Alcohol or Drug Abuse

119 Services for Blind Adults

120 Services for Blind Children

121 Services for Developmentally Disabled Adults

122 Services for Developmentally Disabled Children

123 Services for Handicapped Adults

124 Services for Handicapped Children

125 Services for the Hearing Impaired

126 Services for the Poor

127 Services for Veterans

HOUSING

130 Housing for Youth

131 Housing for the Poor

132 Housing for the Aged

133 Women Shelter

134 Housing for the Disabled

BENEFITTING PUBLIC SAFETY EMPLOYEES

& FAMILY

140 Firemen & Families

141 Law Enforcement Personnel & Families

ACTIVITIES INVOLVING OTHER

ORGANIZATIONS

150 Grants to Other Charitable Organizations

151 Furnished Services or Facilities to Other Organizations

152 Umbrella Parent Organization

OTHER PROGRAM SERVICES

200 Scholarships and Student loans

MISCELLANEOUS PROGRAM SERVICES

300 (Write in Description)

Form CO-1 CHARITABLE ORGANIZATION KWAME RAOUL

Revised 03/19 - REGISTRATION STATEMENT - ATTORNEY GENERAL

This is a registration under: □ Illinois Charitable Trust Act:

□ Illinois Solicitation for Charity Act;

□ Both Acts

Name of Organization Telephone Number Federal Employer ID#

Street and Number City County State Zip Code

Type of legal entity (Corporation, Trust, Unincorporated Association or other) and date, method and place organization legally estab-

lished. If a foreign corporation, when was it authorized to do

business in Illinois?

If a corporation, Illinois Secretary of State’s File No.

*A copy of the Articles of Incorporation or Certificate of Authority issued by the Secretary of State must be attached.

Name, address and telephone number of Illinois registered agent

Address of all offices in the State of Illinois.

Date on which the annual accounting period of the organization ends. Month Day

State the purposes of the organization and purposes for which contributions are to be used. (Be specific)

If the name under which the organization intends to solicit funds differs from the name listed in No.2 provide name(s) under which

contributions will be solicited, and the reason for the use of such other name(s).

If the organization has previously been registered with the Attorney General under either Act, give the name under which registered (if

different than shown in No. 2), last registration number, and date registered.

10.

Has the organization been registered with any other governmental authority to solicit contributions? □ Yes □ No

Name of authority and date of authorization.

Is such registration current? □ Yes □ No

11.

Has the organization or any of its officers, directors or trustees ever been enjoined or prohibited by any court or other governmental

agency from soliciting contributions, or is such action pending? □ Yes □ No

If “Yes”, attach an explanation.

PLEASE TYPE OR PRINT IN INK. This registration statement is required by the Illinois Charitable Trust Act and the Illinois

Solicitation for Charity Act. Please answer all items which are applicable to your organization. If you are unable to answer any

question fully in the space provided, please attach a sheet containing the remainder of your answer. No further registration statement is

required, provided that every registered organization shall notify the Attorney General within 10 days of any change in the information

submitted herein. One copy of this Registration Statement and attachments are to be filed with the Office of the Attorney General,

Charitable Trust and Solicitations Bureau, 100 West Randolph Street, 11th Floor, Chicago, Illinois 60601

12.

Do you intend to use the services of a professional fund raiser as defined by “An Act to Regulate Solicitation and Collection of Funds for

Charitable Purposes”? □ Yes □ No

If “Yes”, answer a, b, and comply with c below.

Name and address of professional fund raiser(s):

Has the professional fund raiser registered and filed a bond with the Office of the Attorney General as required? □ Yes □ No

Attach copies of all contracts with professional fund raiser(s).

13.

Have any of organization’s officers, directors, executive personnel, or have any of the organization’s employees who have access to

funds, ever been charged with or convicted of a misdemeanor involving misapplication or misuse of money of another, or any felony?

□ Yes □ No If “Yes”, give the following information: (IRS 1981 ch.. 23, sec. 5109)

NAME AND ADDRESS OF COURT NATURE OF OFFENSE DATE OF CONVICTION(Mo./Yr.)

14.

State the board, group or individual having final discretion as to the distribution and use of contributions received.

15.

Will you use any of the following methods of solicitation? □ Unordered Merchandise □ Distribution or Sale of Seals

□ Telephone Appeals □ Coin Collection Containers □ Special Events □ Ad Books □ Direct Mail

□ Other --- If other, attach an explanation.

16.

List name, mailing address and title of the chief executive or staff officer of the organization.

17.

Attach a list of names, mailing addresses, and daytime phone numbers of all officers and directors, or trustees of the organization.

18.

Has the United States Internal Revenue Service determined that this organization is tax exempt? □ Yes □ No

If “Yes”, attach a copy of the determination letter. Is application pending? □ Yes □ No

*All organizations with tax exempt status or an application pending must attach a copy of

Federal Form 1023 “Application for Recognition of Exemption” or an exemption letter.

19.

Has organization’s tax exempt status ever been questioned, audited, denied or cancelled at any time by any governmental agency?

□ Yes □ No If “Yes”, attach the facts.

20.

Organizations which have been in operation for over one (1) year must attach a copy of the form AG990-IL and Federal return,

or AG990IL if no Federal return was filed for each year the organization was in existence, completed in detail. Organizations

which have been in operation less than one (1) year must attach a completed Financial Information Form CO-2. Please note

charitable organization’s are required to maintain accurate and detailed accounting records.

21.

Approximate amount of contributions solicited or income received from persons in this State during the organization’s last annual

accounting period $

22.

EVERY REGISTERING ORGANIZATION MUST ATTACH THE FOLLOWING APPLICABLE DOCUMENTS:

Corporation....................................The Articles of Incorporation and/or Certificate of Authority, Amendments and By-Laws

Unincorporated Association...........Constitution and By-Laws

Testamentary Trust.........................Will, Probate number and Decree of Distribution

Inter Vivos Trust.............................Instrument Creating Trust

Note: The President and the Chief Financial Officer or other authorized officer both are required to sign. This must be two different

individuals. If entity is a Trust, all Trustees must sign.

UNDER PENALTY OF PERJURY, THE UNDERSIGNED DECLARE AND CERTIFY THAT THE INFORMATION CONTAINED

IN THIS STATEMENT AND ALL ATTACHED SHEETS IS TRUE AND CORRECT TO THE BEST OF OUR KNOWLEDGE.

Signature

Title

Date

Signature

Title

Date

Form CO.REG.INS KWAME RAOUL

Revised 01/19 ATTORNEY GENERAL

TO REGISTER OR RE-REGISTER WITH THE ILLINOIS ATTORNEY GENERAL’S

OFFICE, ALL ORGANIZATIONS AND TRUSTS MUST SUBMIT:

1. All fees, including the required registration fee ($15.00) or re-registration fee ($200.00), as well as any late registration fee

($200.00), annual report filing fee(s) ($15.00 each report), and/or late report filing fee(s) ($100.00 each late report) due.

2. "Charitable Organization Registration Statement" (Form CO-1).

3. A list of all Officers, Directors and/or Trustees including names, mailing addresses, and day time phone numbers.

4. A copy of the IRS Determination Letter or, if pending, a copy of IRS Form 1023 or 1024. If not available, provide written

explanation.

5. If applicable, copies of all contracts with Professional Fund Raisers.

6. If applicable, the "Religious Organization Exemption Form" (Form CO-3).

7. IF A CORPORATION: Articles of Incorporation and all amendments to the Articles. If incorporated in a state other than

Illinois, include a Certificate of Authority to do business from the Illinois Secretary of State. Also submit the By-Laws of the

Corporation.

8. IF AN UNINCORPORATED ASSOCIATION: Constitution and all amendments and By-Laws of the Association.

9. IF A REPRESENTATIVE OF A PROBATE ESTATE (Containing Charitable Gifts): Will and Letters of Office;

Inventory; Declarations of Trust for any trusts into which the Will pours over and all Amendments thereto.

10. IF A CHARITABLE TRUST OR A LIVING INTER VIVOS TRUST: Declaration of Trust, and all Amendments thereto;

Inventory and recent accounting.

11. A completed Form AG990-IL with all required attachments for each year during the past 3 years in which the organization

has held and/or solicited charitable funds in Illinois. (See instructions for AG990-IL.) If the registrant has held and/or

solicited charitable funds in Illinois for more than three years prior to registration, attach complete AG990-ILs, with all

required attachments, for the most recent 3 years subject to further requests. If the organization has been in existence for less

than 1 year, submit the Form CO-2.

FEES

The Solicitation for Charity Act and Charitable Trust Act require a $15.00 registration fee for all initial registrations.

The Solicitation for Charity Act requires a $200.00 late registration fee for any organization that solicits contributions prior to

registration.

The Solicitation for Charity Act and Charitable Trust Act require a $200.00 re-registration fee for all re-registrations after

cancellation.

The Solicitation for Charity Act and Charitable Trust Act require a $15.00 filing fee for each annual report due. There is an

additional $100.00 late report fee for each late report due. (See instructions for AG990-IL.)

Charitable Trust Act 760 ILCS 55/1 et seq.

Solicitation for Charity Act 225 ILCS 460/1 et seq.

Submit the above registration materials, along with a check or money order for all required fees payable to the “Illinois Charity Bureau

Fund” to:

Office of the Illinois Attorney General

Charitable Trust Bureau

100 West Randolph Street, 11

Floor

Chicago, Illinois 60601-3175

(312) 814-2595