There are many different legal requirements associated with operating a non-profit organization in the state of Illinois. This includes an annual filing of Form AG990, an annual financial report that must be completed by organizations within six months after the organization’s close of the fiscal year. Clients often ask if they can have their non-profit lawyer help them file the form AG990 to comply with state regulations.
This can depend on the client, how they’re structured, and their assets. In this article, learn more about filing AG990-IL and what steps you can take to get assistance in filling out this important form.
What is Form AG990?
According to the Illinois Attorney General, Form AG990 is an annual financial report that must be completed by organizations within the six months after the organization’s close of the fiscal year.
In the annual filing, organizations must:
● Pay a $25 filing fee if assets for Trust Organizations registered under the Charitable Trust Act have greater than $25,000 in gross revenue or assets
● Fill out form AG990-IL
● Submit an IRS return or report such as IRS Form 990, IRS Form 990EZ, IRS Form 990PF, IRS Form 1041, or IRS Form 1120
● Audited financial statements for public charities with contributions greater than $300,000 or if the organization used a professional fund-raiser to raise more than $25,000
● Separate Report of Individual Fundraising Campaign (Form IFC) for each professional campaign that is signed by the professional fund-raiser
There are some organizations that would be excluded from filing a Form AG990 in this annual filing. Trust Organizations registered solely under the Charitable Trust Act can opt to file an AG990 with only:
● Required signatures
● Total revenue
● Total expenditures
In this case, the organization would not pay a filing fee. However, this exclusion only applies to organizations that have a gross revenue or assets that are less than $25,000 in the fiscal year.
Can a Non-Profit Attorney Help File an AG990?
It is always a smart idea to involve professionals in filing and reviewing legal and financial forms that your organization submits to state and federal governing bodies. There are few accountants and lawyers that specialize in the not-for-profit sector. As a result, it can be difficult to find a lawyer or accountant with the right expertise. James C. Provenza and Associates located in Glenview, Illinois can meet with you in their offices or they can meet you in Chicago, Deerfield, or Oakbrook and they are attorneys experienced in working with the not-for-profit sector.
To avoid making a costly mistake, a non-profit attorney can prepare or review the AG990 to make sure the documents are compliant and accurate. This can make the process easier and require less back-and-forth communication with government entities over the status and acceptance of critical paperwork.
Importance of Accuracy in Annual Filings for Not-for-Profit Organizations
Accuracy is vital for all types of organizations. At its most basic, the AG990 is a form filed each year by non-profit organizations in order to comply with fees and reporting requirements. This form includes a breakdown of financial information such as tax filing status and reserves.
Organizations that fail to properly record their financial information or fail to accurately report this information can face severe consequences. Organizations that are not complying with reporting requirements can also be subject to penalty fees. Non-compliant organizations may even lose their tax-exempt status.
For non-profit organizations, compliance with fee reporting is of utmost importance. Good non-profit lawyers have the knowledge and expertise to help non-profits with the AG990 in compliance with state reporting requirements. The attorney can also provide the necessary guidance for preparing certain forms and documentation that are required to be filed during a fiscal year.
Maintain Your Non-Profit Status
If a non-profit is not in compliance with state reporting requirements, it can lose its tax-exempt status. In some cases, this means that the charity or organization must pay taxes on past earnings and pay penalties for previously filed returns and reports. In a worst-case scenario, the non-profit might have to shut down.
Contact James C. Provenza, a Chicago area Non-Profit Lawyer
It is important for non-profit organizations to be in compliance with tax and reporting regulations. For many non-profit organizations, it can be difficult to find the resources needed to comply with these regulations. Thankfully, there are lawyers who specialize in helping non-profits stay compliant, like James C. Provenza and Associates. These lawyers can also help prepare or review the AG990 forms that you need to submit to the state of Illinois during each fiscal year, as well as advise you on any other required federal forms and filings.
As a Chicago non-profit lawyer, we help public charities, private charities, family foundations, and private trusts fill out or review annual filing requirements, such as the AG990. Contact James C. Provenza & Associates, P.C. at (847) 729-3939 or by filling out our online form.