State of the Nonprofit Regulatory Environment in ILLINOIS

1 Bifurcation of charitable regulatory body

Bifurcated Regulatory Structure

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

IL Code § 55

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: No - 760 ILCS 55 et. seq.

Registration Office

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

BIFURCD-REGIOF-NS

REGULATORY BODY: Not Specific

NOTES: Illinois Attorney General http://www.illinoisattorneygeneral.gov/charities/register_report.html

2 Notice, Filing or Review of Transactions

Sale of Assets

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-ASSETS-AG

REGULATORY BODY: Attorney General

NOTES: No

REPORTS-ASSETS-OT

REGULATORY BODY: Other

NOTES: No

Mergers

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-MERGER-AG

REGULATORY BODY: Attorney General

NOTES: No

IL Code § 105/111.25

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: File with Sec. of State 805 ILCS § 105/111.25

Certificate of Amendments

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-AMMEND-AG

REGULATORY BODY: Attorney General

NOTES: No

IL Code § 105/110.30

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: Sec. of State, 805 ILCS 105/110.30; pursuant to reorganization, 805 ILCS 105/110.40

IL Code § 105/110.40

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: Sec. of State, 805 ILCS 105/110.30; pursuant to reorganization, 805 ILCS 105/110.40

Does the state require annual financial reporting by charitable organizations in addition to filing a copy of the 990 with the regulator (if filing 990 is required)?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

REPORTS-FINANC-NS

REGULATORY BODY: Not Specific

NOTES: http://www.illinoisattorneygeneral.gov/charities/ag990-instructions.pdf

3 Notice or Action for Dissolutions

Voluntary Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-VOLUNT-AG

REGULATORY BODY: Attorney General

NOTES: No

IL Code § 105/112.20

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: 805 ILCS 105/112.20

Judicial Dissolutions

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 105/112.50

REGULATORY BODY: Attorney General

STATUTE TEXT:

NOTES: 805 ILCS 105/112.50

IL Code § 105/112.65

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: File with Sec. of State 805 ILCS 105/112.65

Administrative Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-ADMINI-AG

REGULATORY BODY: Attorney General

NOTES: No

IL Code § 105/112.35

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: Sec. of State - 805 ILCS 105/112.35

4 Notice, Oversight or Filing of Hospital Conversions

Has Statute

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 415

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Yes, effective July 1, 2018, 805 ILCS 415

Requires Notice or Oversight

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 415/104

REGULATORY BODY: Attorney General

STATUTE TEXT:

NOTES: 805 ILCS 415/104

IL Code § 415/104

REGULATORY BODY: Other

STATUTE TEXT:

NOTES: 805 ILCS 415/104

Requires Filing

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-FILING-OT

REGULATORY BODY: Other

NOTES: No

5 Audits

Requires Audit

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/4

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/4

Audit Threshold

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-THRESH-NS

REGULATORY BODY: Not Specific

NOTES: 300000

6 Registration Law

Registration Law

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/2

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/2

7 Exemptions from Registering for Specific Organization Types

Religious Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(a)(1)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(a)(1)

Small organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(a)(2)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(a)(2) ($15k)

Educational Institutions

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(1)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(1)

Governmental Organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-GOVMNT-NS

REGULATORY BODY: Not Specific

NOTES: NO

Hospitals

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-HOSPIT-NS

REGULATORY BODY: Not Specific

NOTES: NO

Veterans organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(10)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(10)

Foundations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDYES-NS

REGULATORY BODY: Not Specific

NOTES: NO

Foundations that don’t solicit contributions

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDNOS-NS

REGULATORY BODY: Not Specific

NOTES: NO

Charitable Trusts

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-CTRUST-NS

REGULATORY BODY: Not Specific

NOTES: NO

Parent-Teacher Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(11)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(11)

Reports to congress

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(8)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(8)

Non-soliciting

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/2(a)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/2(a)

Fraternal/ Membership

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(2)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(2)

Political Orgs

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(4)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 ILCS 460/3(b)(4)

Other

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

IL Code § 460/3(b)(3))

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Specified beneficiary (225 ILCS 460/3(b)(3)), org receiving money from community chest under $4k (225 ILCS 460/3(b)(5)), volunteer firefighters (225 ILCS 460/3(b)(6)), nursery (225 ILCS 460/3(b)(7), Boys’ Club (225 ILCS 460/3(b)(9))

IL Code § 460/3(b)(5))

REGULATORY BODY: Not Specific

STATUTE TEXT:

IL Code § 460/3(b)(6))

REGULATORY BODY: Not Specific

STATUTE TEXT:

IL Code § 460/3(b)(7)

REGULATORY BODY: Not Specific

STATUTE TEXT:

IL Code § 460/3(b)(9))

REGULATORY BODY: Not Specific

STATUTE TEXT:

8 Defined remedies

Dissolution

Regulatory Action: REMEDY

YES: A regulation is defined in the state

IL Code § 105/112.50

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 805 ILCS 105/112.50

Removal of Board Members

Regulatory Action: REMEDY

YES: A regulation is defined in the state

REMEDYT-BRDRMV-NS

REGULATORY BODY: Not Specific

NOTES: 760 Ill. Comp. Stat. Ann. 55/16

9 Oversight of professional fundraisers

Does the state require registration by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/6

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/6

Does the state require registration by fundraising counsel?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/6.5

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/6.5: Registration every three years

Does the state oversee commercial-coventuring (e.g. by requiring that the co-venture be registered or by requiring that the charitable organization files the co-venture contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

FNDRAZE-VENTUR-NS

REGULATORY BODY: Not Specific

Does the state require the fundraisers to provide notice to the regulator before any solicitation campaign (in addition to annual registration and/or filing the contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

IL Code § 460/6.5

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Must file each new contract before start of campaign: 225 Ill. Comp. Stat. § 460/6.5

Does the state require specified disclosures to donors?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/17

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/17

Does the state require a copy of any contract between a charitable organization and a commercial fundraiser or fundraising counsel be filed with the regulator?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/7

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/7

Does the state require annual financial reporting by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/6

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: 225 Ill. Comp. Stat. § 460/6

Does the state require bonding of professional fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

IL Code § 460/6

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: If the applicant intends to or does take control or possession of charitable funds, the applicant must file a bond with the Attorney General in the sum of $10,000, with one or more corporate sureties licensed to do business in Illinois. 225 Ill. Comp. Stat. § 460/6