So, you have registered your nonprofit with the Illinois Attorney General, received your federal and/or state tax exemptions (if applicable) from the IRS and the Illinois Department of Revenue, and you’ve begun conducting your charitable activities. Inevitably, to retain your nonprofit’s tax-exempt status at both the federal and Illinois level, you need to maintain comprehensive compliance and ensure that you meet all reporting requirements.
By calling Chicago area CPA and nonprofit attorney James C. Provenza, we can provide comprehensive and experience-backed oversight regarding your annual reporting, making sure that your annual reports are comprehensive, legally satisfactory, and timely. Call our nonprofit law firm today at (847) 729-3939.
Annual Filings With the Illinois Secretary of State
Every not-for-profit corporation in Illinois must file an annual report of officers and directors to the Illinois Secretary of State. This annual report to the Secretary of State is due every year before the beginning of the month of the nonprofit’s incorporation anniversary. Nonprofits in Illinois are able to file the annual report annually, and can enter a maximum of six officers and seven directors.
This electronic filing system is typically available as long as the corporation hasn’t changed its authorized shares and doesn’t own property outside of Illinois. Failure to file an annual report may result in involuntary dissolution of the corporation.
Annual Filings With the Illinois Attorney General
Every not-for-profit incorporated in Illinois also needs to maintain accurate filings with the Illinois Attorney General. The annual filing firm is Form AG990-IL, the Illinois Charitable Organization Annual Report, and it is due every year within six months of the end of the fiscal year.
Form AG990-IL requires information such as revenue and expenditures, as well as other information. To complete this document, you may need a copy of your IRS return (IRS 990, 990EZ, 990PF or other), audited financial statements if gross contributions exceeded $300,000 or a professional fundraiser raised more than $25,000, a copy of Form IFC if the nonprofit used a professional fundraiser, and the $15 annual report filing fee. Filing late can result in a $100 fee.
Soliciting Organizations who are registered under the Solicitation for Charity Act with gross revenues and assets less than $25,000 or less may only need to file certain aspects of AG990-IL, such as total revenue, total expenditures, and assets at the fiscal year end. The $15 filing fee is only due if the organization’s gross revenue was more than $15,000. Trust Organizations registered solely under the Charitable Trust Act have similar filing requirements as Soliciting Organizations, but Trust Organizations may not have to pay the filing fee.
Professional Fundraiser Annual Filing Requirements
In addition to six-month financial reports, professional fundraisers must also file annual financial reports. The six-month and the annual reports, which are usually due to the Illinois Attorney General by September 30 and April 30, respectively, must include:
- Form PFR-02 — Professional Fundraiser Annual Financial Report
- Form IFC — Report of Individual Fundraising. Fundraisers must have a separate form submitted for each campaign conducted.
- Form PFR-04 — Professional Solicitor Compensation Report
- Form PFR-05 — Explanation of Professional Fundraising Fees
Annual Filings With the IRS
Lastly, one of the other major annual filings you’ll have to do is the IRS Form 990 or Form 990-N. These are usually due every year by the 15th day of the 5th month after the nonprofit’s fiscal year end. This applies to tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations. Different organizations may be required to include specific information; for instance, 501(c)(3) organizations may have to disclose:
- Gross income for the year
- Expenses for the year
- Its disbursements associated with tax-exempt purposes
- A balance sheet showing its assets, liabilities, and net worth
- The total of the contributions and gifts received during the year, as well as names of substantial contributors
- The names and addresses of its foundation managers, as well as highly compensated employees
- And several others…
Additional Annual Filings if the Nonprofit Has Employees
If the nonprofit has employees that are paid more than $1,500 in any calendar quarter, you must file and pay withholding taxes to the IRS and the IL Dept. of Revenue. For instance:
- IRS Form 941 quarterly for every employee (Apr 30, Jul 31, Oct 31, Jan 31)
- IL 941 with the Illinois Department of Revenue, quarterly for every employee
- UI 3/40 with the Illinois Department of Employment Security, quarterly for every employee
For Your Nonprofit Filings, Call James C. Provenza & Associates, P.C.
Maintaining absolute compliance with the Illinois agencies as well as the IRS can be an ongoing, complex affair. Nevertheless, by contacting one of the leading Chicago area CPA and nonprofit attorneys, James C. Provenza & Associates, you can benefit from comprehensive legal oversight and representation. Call us today at (847) 729-3939.