Ask Chicago Not-For-Profit Attorney James Provenza:
Fundraising Regulations for Illinois Nonprofits
Fundraising is perhaps one of the most important tools that a nonprofit requires to keep its financial health afloat. Due to tax benefits that nonprofits enjoy, however, the State of Illinois requires nonprofits to follow a strict code of regulations. This also helps keep fraudulent and other dysfunctional charities from harming public trust of Illinois nonprofits.
Therefore, if your nonprofit is fundraising in Illinois, you need to register with the Illinois Attorney General’s Charitable Trust and Solicitations Bureau. For diligent and competent legal guidance and oversight from one of Chicago’s leading nonprofit attorneys, call James C. Provenza & Associates, PC or visit our Glenview law office.
Illinois Charitable Solicitation Laws
It is absolutely essential to note that, in order to solicit funds from the Illinois donors, all nonprofits must register first with the Charitable Trust and Solicitations Bureau. Thereafter, the nonprofit organization must also submit annual reports to the Illinois Attorney General’s office. According to the Illinois Solicitation for Charity Act, however, there are certain groups exempt from filing annual financial reports, including:
- Corporations sole or other religious corporations
- Trusts or organizations incorporated or established for religious purposes
- Any other nonprofit which does not intend to solicit and receive and does not actually receive more than $15,000 during any calendar year.
Annual reports must be filed within six months of the nonprofit organization’s fiscal year end. Moreover, charities that received more than $150,000 in solicitations (or $25,000 if the organization used a professional fundraiser) must submit the following documents:
- The Illinois Charitable Organization Annual Report, Form AG990-IL, signed by the nonprofit’s president and the treasurer and/or two trustees
- IRS tax returns
- Audited financial statements
If you used a professional fundraiser, you’ll also need the Illinois Fundraising Campaign form for each campaign during the fiscal period. If the nonprofit raised between $25,000 and $150,000 in contributions (or less than $25,000 through a professional fundraiser), the nonprofit needs the same forms as above but does not need audited financial statements. If the charity received between $15,000 and $25,000, it needs to file the AG990-IL and provide receipts, total disbursements, and assets on hand for the fiscal year. A charity that raises less than $15,000 does not need to file an annual report.
Raise Funds For Your Nonprofit With the Help of James C. Provenza & Associates, PC
Fundraising is absolutely essential to the well-being and success of a nonprofit organization. In other words, if you founded or you manage a nonprofit, fundraising is an inevitable activity. To ensure comprehensive legality over your fundraising operations, it can be helpful to acquire the legal services of an experienced nonprofit attorney. With over 20 years helping hundreds of nonprofits throughout the state, James C. Provenza has provided legal oversight and counsel over fundraising operations.
For a consultation regarding your nonprofit, call James C. Provenza & Associates, PC today at (847) 729-3939 or fill out the contact form on the right to get started.