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Building Better Charities

Rules Solicitation For Charity Act

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TITLE 14:   COMMERCE;   SUBTITLE B:   CONSUMER PROTECTION
CHAPTER II:   ATTORNEY GENERAL;   PART 400   SOLICITATION FOR CHARITY ACT


Section
400.10     General
400.20     Definitions
400.30     Registration
400.40     Religious Exemption
400.60     Annual Reports for Charitable Organizations
400.65     Mid-Year and Annual Reports for Professional Fund Raisers
400.70     Professional Fund Raiser Renewal
400.80     Professional Solicitor Renewal
400.85     Professional Fundraising Consultant Renewal
400.90     Public Records
400.100   Registration Not an Endorsement

APPENDIX A   Charitable Organization Forms
    ILLUSTRATION A   Registration Statement and Instructions (Form CO-1 and Form CO-1 Instructions)
    ILLUSTRATION B   Financial Information Form (Form CO-2, *PDF)
    ILLUSTRATION C   Religious Organization Exemption Form (Form CO-3, *PDF)
    ILLUSTRATION D   Annual Report and Instructions (AG990-IL & Form AG990-IL Filing Instructions)
    ILLUSTRATION E   Report of Individual Fundraising Campaign (Form IFC, *PDF)

APPENDIX B   Professional Fund Raiser Forms
    ILLUSTRATION A   Registration Statement and Instructions (Form PFR-01 & Form PFR-01 Instructions)
    ILLUSTRATION B   List of Charities and Contracts (Form PFR-06, *PDF)
    ILLUSTRATION C   Bond (Form CS-6, *PDF)
    ILLUSTRATION D   Annual Financial Report (Form PFR-02, *PDF)
    ILLUSTRATION E   Report of Individual Fundraising Campaign (Form IFC, *PDF)
    ILLUSTRATION F   Professional Solicitor Compensation Report (Form PFR-04, *PDF)
    ILLUSTRATION G   Explanation of Professional Fundraising Fees (Form PFR-05, *PDF)

APPENDIX C   Professional Solicitor Forms
    ILLUSTRATION A   Registration Statement (Form PS-01, *PDF)

APPENDIX D   Professional Fundraising Consultant Forms
    ILLUSTRATION A   Registration Statement (*PDF)

AUTHORITY:   Implementing and authorized by the Solicitation for Charity Act [225 ILCS 460].

SOURCE:   Adopted and effective November 5, 1975; amended at 2 Ill. Reg. 37, p. 185, effective
September 30, 1978; amended at 6 Ill. Reg. 9616, effective August 1, 1982; codified at 7 Ill. Reg.
879; amended at 24 Ill. Reg. 14684, effective September 21, 2000.

Section 400.10 General

The Charitable Trusts Bureau of the Attorney General's Office (hereafter Bureau) will maintain a
file of all charitable organizations, professional fund raisers, professional fund raising consultants
and professional solicitors registered under the Illinois Solicitation for Charity Act at its Chicago
office.

    (Source: Amended at 24 Ill. Reg.14684, effective September 21, 2000)

Section 400.20 Definitions

    The words used in these Rules are used with the same meaning assigned to them by statute
    unless clarified below.

    "Charitable purposes" means any charitable, benevolent, philanthropic, patriotic, or
    eleemosynary purpose and includes the conduct described in Section 480.20(e) of Charitable
    Trust Act (14 Ill. Adm. Code 480).

    "Contributions" means the gross amount of money raised and not merely the portion which
    after expenses is devoted to the charity.

    (Source: Amended at 2 Ill. Reg. 37, p. 185, effective September 30, 1978)

Section 400.30 Registration

    a)   Charitable Organization

          1)   Any charitable organization which solicits in Illinois must first register with
                 the Attorney General unless it is exempt under the provisions of Section 3(b)
                 of the Act.

          2)   To register, a charitable organization must file a completed registration
                 statement in the forms set forth in Appendix A, Illustrations A and B of this
                 Part, all appropriate attachments, including a schedule of assets and

                 investments, and all required statutory fees. All registrations must be
                 accompanied by a copy of the instrument under which the property is
                 administered (for example, trust documents, articles of incorporation,
                 constitution, by-laws) and a financial statement. If the organization employs
                 a professional fund raiser, a copy of its contract with the professional fund
                 raiser must accompany the registration statement.

          3)   If the organization has been in operation prior to registering, it must file, in
                 addition to its registration statement, financial statements for each of the past
                 three years and executed copies of annual reports or returns filed with the
                 Internal Revenue Service for each of the past three years, must pay all filing
                 fees and all late fees as provided by Sections 2 and 4 of the Act, and is
                 subject to accounting for all past years of operation prior to registration.

          4)   When a registration is canceled, to return to compliance, a re-registration
                 must be made. Re-registration requires the submission of all of the above
                 registration documents as applicable, including the re-registration penalty
                 fees as provided by Section 2 of the Act.

          5)   Registration by an organization under Section 2 of the Act may upon request
                 also satisfy the organization's registration requirements under the Charitable
                 Trust Act [760 ILCS 55/5].

          6)   The Attorney General may by pre-approval accept registration forms used by
                 other states which contain the information required in Appendix A,
                 Illustration A.

    b)   Professional Fund Raiser

          1)   No professional fund raiser may be employed by a charitable organization in
                 Illinois without prior registration with the Attorney General.

          2)   To register, a professional fund raiser must file a completed registration
                 statement in the forms set forth in Appendix B, Illustrations A and B of this
                 Part, all required statutory fees, copies of all Illinois charitable fundraising
                 contracts and a professional fund raiser's bond when a bond is required, as
                 described in subsection (b)(3).

          3)   If the applicant is a professional fund raiser that will control or possess
                 charitable funds, a bond in the amount of $10,000, expiring upon the next
                 June 30, issued with the professional fund raiser as a principal and a
                 corporate surety licensed to do business in Illinois as surety, must accompany
                 the registration. The bond must be in the form provided by the Bureau as set
                 forth in Appendix B, Illustration C of this Part.

c)   Professional Solicitor

          1)   No professional solicitor may solicit in Illinois without prior registration with
                 the Attorney General. No person may register as a professional solicitor
                 unless he is employed by a registered professional fund raiser.

          2)   To register, a professional solicitor must file a completed registration
                 statement in the form set forth in Appendix C, Illustration A of this Part.

    d)   Professional Fundraising Consultant

          1)   No person or entity may act as a professional fundraising consultant without
                 prior registration with the Attorney General.

          2)   To register, a professional fundraising consultant must file a completed
                 registration statement in the form set forth in Appendix D, Illustration A of
                 this Part, copies of all Illinois charitable fundraising consultant contracts and
                 an affidavit stating that the professional fundraising consultant has not or will
                 not at any time have custody or control of contributions.

    e)   A registrant shall notify the Attorney General of any changes in registration
          information within ten days after the change.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.40 Religious Exemption

    a)   Religious organizations are subject to the Act and must register under the Act. If the
          Attorney General has issued a religious exemption to an organization pursuant to the
          provisions of Section 3(a) of the Act, that organization is exempt from filing annual
          reports.

    b)   To obtain a religious exemption, an organization must file a completed registration
          statement, request an exemption and submit a religious exemption questionnaire in
          the form set forth in Appendix A, Illustration C of this Part.

    c)   The Attorney General may require the organization to supply supplemental
          information as is necessary to determine its religious character.

    d)   The Attorney General may issue either a blanket or an individual religious
          exemption.

    e)   An individual religious exemption covers a single named religious group.

    f)   A blanket religious exemption is issued to and upon the request of the central body
          of a church or denomination and covers the church and all of the affiliated agencies
          listed in the exemption request.

    g)   Any religious organization with multiple subdivisions may request a blanket
          exemption.

    h)   An application for a blanket religious exemption must be filed by the central
          governing authority of the church and shall contain the information required by
          Section 400.40(b) and also a list of the affiliated organizations and agencies which
          are directed and controlled by the central church.

    i)   If, upon the filing of an application for religious exemption, the Attorney General
          determines that the organization is religious within the definition of Section 3(a) of
          the Act and that its purposes are actual and genuine, a religious exemption will be
          issued.

    j)   Organizations receiving blanket exemptions shall periodically supply the Attorney
          General with current lists of their affiliates.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000.)

Section 400.60 Annual Reports for Charitable Organizations

    a)   To complete a proper annual report filing, all annual reports required under the Act
          must be filed on the form set forth in Appendix A, Illustration D of this Part and with
          the attachments prescribed by the form and this Section, signed by both the president
          of the organization or other authorized officer, and the chief fiscal officer, and with
          all required statutory fees paid prior to the due date.

    b)   Each annual financial report is due within six months after the close of the
          organization's fiscal year. An organization may request a 60 day extension of the due
          date pursuant to Section 4(f) of the Act.

    c)   Failure to file a complete annual report including all required attachments, along with
          payment of fees due prior to the due date, shall result in the organization being
          classified delinquent, and shall subject the organization to the payment of a late filing
          fee.

    d)   On each annual report an organization must report separately all program costs
          associated with a joint cost fundraising appeal to the extent such was allocated to
          charitable program service expense and included on the annual report as charitable
          program service expense. The organization must maintain written records showing
          how the allocation was determined and the reasoning behind it.

    e)   The form and attachments required for an organization's annual report is determined
          by the amount of its revenue and assets during the reporting fiscal period or whether
          it has used the services of a paid professional fund raiser as follows:

          1)   Any organization which received contributions of more than $150,000 in any
                 reporting fiscal year or any organization which employed professional fund
                 raisers during any part of the fiscal year who raised contributions totaling
                 more than $25,000 during the organization's fiscal year must file:

                 A)   The Illinois Charitable Organization Annual Report form signed by
                        the president and the treasurer and/or two trustees;

                 B)   A copy of the Federal Internal Revenue return and/or report as
                        required by the Internal Revenue Codes and incorporated attachments
                        for the same period;

                 C)   A financial report accompanied by financial statements and the
                        certification of an independent certified public accountant.
                        Certification must be in the form of an unqualified opinion letter;

                 D)   All required statutory fees, including all late fees and re-registration
                        fees; and

                 E)   If the organization employs a professional fund raiser, the Illinois
                        Fundraising Campaign form for each professional fundraising
                        campaign conducted during the fiscal period in the form set forth in
                        Appendix A, Illustration E of this Part.

          2)   Any organization with contributions more than $25,000 but not in excess of
                 $150,000, or any organization which employed professional fund raisers who
                 raised contributions of $25,000 or less during the organization's fiscal year,
                 need not file an independent certified public accountant's opinion but must
                 submit all of the other items required and listed in subsection (e)(1) above.

          3)   Any organization which received contributions of more than $15,000 but not
                 in excess of $25,000 during its fiscal year must file an annual report, but it
                 may make a simplified filing by submitting:

                 A)   A financial statement using the Illinois Charitable Organization
                        Annual Report form disclosing total receipts, total disbursements and
                        assets on hand at the fiscal year end, accompanied by an attestation
                        to the truth of the financial statement; and

                 B)   All required statutory fees.

          4)   Certain organizations registered under the Act that are not required to file an
                 annual report for a specific fiscal year under the Act, may be required to file
                 under the Charitable Trust Act [760 ILCS 55].

    f)   Charitable organizations which have made a consolidated registration pursuant to
          Section 2(g) of the Act shall include in their annual report such additional detailed
          financial information as will fairly represent the financial position of each of the
          affiliated groups.

    g)   The Attorney General shall, upon written request, extend for 60 days the time for
          filing the annual financial report .

    h)   If an organization is entitled to an additional extension for good cause by the Internal
          Revenue Service, which would extend its federal tax return or report due date to a
          date later than the Attorney General's due date, the organization may obtain an
          additional extension from the Attorney General coinciding with the same Internal
          Revenue Service due date. Extension requirements are:

          1)   This extension request must be made prior to the due date for the Attorney
                 General's annual financial reports and must include:

                 A)   A written request for such additional extension;

                 B)   A completed and signed Illinois Charitable Organization Annual
                        Report form;

                 C)   Financial statements, including a balance sheet and report of income
                        and expenses for the subject period in final or interim form;

                 D)   All required statutory fees; and

                 E)   A copy of the application for extension of time filed with the Internal
                        Revenue Service.

          2)   The filing of all required reports must be done on or before the Internal
                 Revenue Service extended filing date and shall include:

                 A)   A copy of the approved Internal Revenue Service application for
                        extension;

                 B)   A copy of the Federal tax return or report; and

                 C)   Audited financial statements if required by the Attorney General and
                        not previously filed.

    i)   Failure to file a timely and complete financial report will result in penalty fees and/or
          a fine and subjects the organization's registration to cancellation.

    j)   Upon cancellation the organization must cease operations.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.65 Mid-Year and Annual Reports for Professional Fund Raisers

    a)   Mid-Year Reports:

          1)   Every registered professional fund raiser who takes possession or control of
                 charitable funds directly, indirectly, by an agent, or as an escrowee shall file
                 a full written accounting to the charitable organization of all funds it or its
                 agents collected on behalf of the charitable organization during the six month
                 period ending June 30 of each year, and file a copy of the accounting with the
                 Attorney General by September 30 of each year.

          2)   The accounting shall be in writing and signed under oath on forms prescribed
                 by the Attorney General as set forth in Appendix B, Illustrations D through
                 G of this Part.

    b)   Annual Reports:

          1)   Every registered professional fund raiser shall file a calendar year written
                 financial report with the Attorney General. The report shall contain such
                 information as the Attorney General may require, and shall use forms
                 prescribed by him as set forth in Appendix B, Illustrations D through G of
                 this Part. Separate financial reports for each fund raising campaign
                 conducted shall be filed, together with the statutory report filing fee.

          2)   The required report shall be filed on or before April 30 of the following
                 calendar year, signed and verified under penalty of perjury, together with the
                 required statutory fees. The Attorney General will grant a 30 day extension
                 of the due date pursuant to Section 6(d) of the Act if such extension is
                 requested in writing prior to the due date.

          3)   The professional fund raiser shall provide a copy of the report to the
                 charitable organization by the due date of the filing.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.70 Professional Fund Raiser Renewal

    a)   The registration of all professional fund raisers expires on the next June 30 following
          their registration.

    b)   A registered professional fund raiser who wishes to continue to act as professional
          fund raiser in Illinois must apply for renewal of its registration during June of the
          year in which his registration expires.

    c)   To renew, a professional fund raiser must file a new, completed registration
          statement, an annual financial report as provided by the Attorney General,
          professional fund raiser bond which meets the requirements of Section 400.30 (b)(3)
          for the period beginning July 1 and ending June 30 of the next year, and copies of
          active contracts and all required statutory fees.

    d)   All Illinois professional fund raisers must file a copy of each professional fundraising
          contract prior to conducting a fundraising campaign.

    e)   All charitable organizations and professional fund raisers shall retain copies of their
          professional fundraising contracts for three years following the completion of the
          contract.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.80 Professional Solicitor Renewal

    a)   The registration of all professional solicitors shall expire on the next June 30th
          following their registration.

    b)   A registered professional solicitor who intends to continue to act as a professional
          solicitor in Illinois must apply for renewal of its registration during June of the year
          in which its registration expires.

    c)   To renew, a professional solicitor must file a new, completed registration statement.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.85 Professional Fundraising Consultant Renewal

    a)   The initial registration of all professional fundraising consultants shall expire on the
          June 30 following two years of registration. Successive two year re-registration
          periods shall also expire on June 30.

    b)   A registered professional fundraising consultant who intends to continue to act as a
          consultant in Illinois must apply for renewal of its registration during the month
          preceding expiration of the two year registration period.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.90 Public Records

All registrations and reports filed with the Attorney General under the Act are public records and
may be inspected in the office of the Attorney General during ordinary business hours.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)

Section 400.100 Registration Not an Endorsement

    a)   Any representation made by a charitable organization, professional fund raiser, or
          professional solicitor in connection with its solicitation that it is registered or has
          otherwise complied with the Act, or that indicates the Attorney General endorses the
          organization, is unlawful, except as provided in Section 17 of the Solicitation For
          Charity Act [225 ILCS 460/17].

    b)   The Attorney General may immediately cancel the registration of any person or
          organization violating Section 400.100(a). An affidavit from a person to whom such
          an illegal representation was made shall be sufficient to warrant an immediate
          cancellation.

    (Source: Amended at 24 Ill. Reg. 14684, effective September 21, 2000)


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