Bill Text: IL SB1599 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Solicitation of Charity Act and the Charitable Trust Act. Requires the Attorney General to accept reports that are required under these Acts electronically. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-27 - Placed on Calendar Order of 3rd Reading March 4, 2025 [SB1599 Detail]

Download: Illinois-2025-SB1599-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1599 Introduced 2/4/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
225 ILCS 460/4 from Ch. 23, par. 5104
760 ILCS 55/7 from Ch. 14, par. 57
Amends the Solicitation of Charity Act and the Charitable Trust Act. Requires the Attorney General to accept reports that are required under these Acts electronically. Effective immediately.
LRB104 08999 JRC 19055 b
A BILL FOR
SB1599 LRB104 08999 JRC 19055 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Solicitation for Charity Act is amended by
changing Section 4 as follows:
(225 ILCS 460/4) (from Ch. 23, par. 5104)
Sec. 4. Annual reporting for charities.
(a) Every charitable organization registered pursuant to
Section 2 of this Act which shall receive in any 12-month
period ending upon its established fiscal or calendar year
contributions in excess of $500,000 and every charitable
organization whose fund raising functions are not carried on
solely by staff employees or persons who are unpaid for such
services, if the organization shall receive in any 12-month
period ending upon its established fiscal or calendar year
contributions in excess of $25,000, shall file a written
report with the Attorney General upon forms prescribed by him
or her, on or before June 30 of each year if its books are kept
on a calendar basis, or within 6 months after the close of its
fiscal year if its books are kept on a fiscal year basis, which
written report shall include a financial statement covering
the immediately preceding 12-month period of operation. Such
financial statement shall include a balance sheet and

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statement of income and expense, and shall be consistent with
forms furnished by the Attorney General clearly setting forth
the following: gross receipts and gross income from all
sources, broken down into total receipts and income from each
separate solicitation project or source; cost of
administration; cost of solicitation; cost of programs
designed to inform or educate the public; funds or properties
transferred out of this State, with explanation as to
recipient and purpose; cost of fundraising; compensation paid
to trustees; and total net amount disbursed or dedicated for
each major purpose, charitable or otherwise. Such report shall
also include a statement of any changes in the information
required to be contained in the registration form filed on
behalf of such organization. The report shall be signed by the
president or other authorized officer and the chief fiscal
officer of the organization who shall certify that the
statements therein are true and correct to the best of their
knowledge, and shall be accompanied by an opinion signed by an
independent certified public accountant that the financial
statement therein fairly represents the financial operations
of the organization in sufficient detail to permit public
evaluation of its operations. Said opinion may be relied upon
by the Attorney General.
(b) Every organization registered pursuant to Section 2 of
this Act which shall receive in any 12-month period ending
upon its established fiscal or calendar year of any year

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contributions:
(1) in excess of $15,000, but not in excess of
$25,000, during a fiscal year shall file only a simplified
summary financial statement disclosing only the gross
receipts, total disbursements, and assets on hand at the
end of the year on forms prescribed by the Attorney
General;
(2) in excess of $25,000, but not in excess of
$300,000, if it is not required to submit a report under
subsection (a) of this Section, shall file a written
report with the Attorney General upon forms prescribed by
him, on or before June 30 of each year if its books are
kept on a calendar basis, or within 6 months after the
close of its fiscal year if its books are kept on a fiscal
year basis, which shall include a financial statement
covering the immediately preceding 12-month period of
operation limited to a statement of such organization's
gross receipts from contributions, the gross amount
expended for charitable educational programs, other
charitable programs, management expense, and fund raising
expenses including a separate statement of the cost of any
goods, services, or admissions supplied as part of its
solicitations, and the disposition of the net proceeds
from contributions, including compensation paid to
trustees, consistent with forms furnished by the Attorney
General. Such report shall also include a statement of any

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changes in the information required to be contained in the
registration form filed on behalf of such organization.
The report shall be signed by the president or other
authorized officer and the chief fiscal officer of the
organization who shall certify that the statements therein
are true and correct to the best of their knowledge; or
(3) in excess of $300,000, but not in excess of
$500,000, if it is not required to submit a report under
subsection (a), shall file a written report with the
Attorney General upon forms prescribed by the Attorney
General, on or before June 30 of each year if its books are
kept on a calendar basis, or within 6 months after the
close of its fiscal year if its books are kept on a fiscal
year basis, which written report shall include a financial
statement covering the immediately preceding 12-month
period of operation limited to a statement of such
organization's gross receipts from contributions, the
gross amount expended for charitable educational programs,
other charitable programs, management expense, and fund
raising expenses, including a separate statement of the
cost of any goods, services, or admissions supplied as
part of its solicitations, and the disposition of the net
proceeds from contributions, including compensation paid
to trustees, consistent with forms furnished by the
Attorney General. Such report shall also include a
statement of any changes in the information required to be

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contained in the registration form filed on behalf of such
organization. The report shall be signed by the president
or other authorized officer and the chief fiscal officer
of the organization who shall certify that the statements
therein are true and correct to the best of their
knowledge and shall be accompanied by reviewed financial
statements, including a report signed by an independent
certified public accountant stating that the independent
certified public accountant is not aware of any material
modifications that should be made to the financial
statements in order to permit public evaluation of its
operations. The report may be relied upon by the Attorney
General.
(c) For any fiscal or calendar year of any organization
registered pursuant to Section 2 of this Act in which such
organization would have been exempt from registration pursuant
to Section 3 of this Act if it had not been so registered, or
in which it did not solicit or receive contributions, such
organization shall file, on or before June 30 of each year if
its books are kept on a calendar basis, or within 6 months
after the close of its fiscal year if its books are kept on a
fiscal year basis, instead of the reports required by
subdivisions (a) or (b) of this Section, a statement certified
under penalty of perjury by its president and chief fiscal
officer stating the exemption and the facts upon which it is
based or that such organization did not solicit or receive

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contributions in such fiscal year. The statement shall also
include a statement of any changes in the information required
to be contained in the registration form filed on behalf of
such organization.
(d) As an alternative means of satisfying the duties and
obligations otherwise imposed by this Section, any veterans
organization chartered or incorporated under federal law and
any veterans organization which is affiliated with, and
recognized in the bylaws of, a congressionally chartered or
incorporated organization may, at its option, annually file
with the Attorney General the following documents:
(1) A copy of its Form 990, as filed with the Internal
Revenue Service.
(2) Copies of any reports required to be filed by the
affiliate with the congressionally chartered or
incorporated veterans organization, as well as copies of
any reports filed by the congressionally chartered or
incorporated veterans organization with the government of
the United States pursuant to federal law.
(3) Copies of all contracts entered into by the
congressionally chartered or incorporated veterans
organization or its affiliate for purposes of raising
funds in this State, such copies to be filed with the
Attorney General no more than 30 days after execution of
the contracts.
(e) As an alternative means of satisfying all of the

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duties and obligations otherwise imposed by this Section, any
person, pursuant to a contract with a charitable organization,
a veterans organization, or an affiliate described or referred
to in subsection (d) who receives, collects, holds, or
transports as the agent of the organization or affiliate for
purposes of resale any used or second hand personal property,
including, but not limited to, household goods, furniture, or
clothing donated to the organization or affiliate may, at its
option, annually file with the Attorney General the following
documents, accompanied by an annual filing fee of $15:
(1) A notarized report including the number of
donations of personal property it has received on behalf
of the charitable organization, veterans organization, or
affiliate during the preceding year. For purposes of this
report, the number of donations of personal property shall
refer to the number of stops or pickups made regardless of
the number of items received at each stop or pickup. The
report may cover the person's fiscal year, in which case
it shall be filed with the Attorney General no later than
90 days after the close of that fiscal year.
(2) All contracts with the charitable organization,
veterans organization, or affiliate under which the person
has acted as an agent for the purposes listed above.
(3) All contracts by which the person agreed to pay
the charitable organization, veterans organization, or
affiliate a fixed amount for, or a fixed percentage of the

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value of, each donation of used or second hand personal
property. Copies of all such contracts shall be filed no
later than 30 days after they are executed.
(f) The Attorney General may seek appropriate equitable
relief from a court, enter into a binding nonjudicial
settlement agreement, or cancel the registration of any
organization which fails to comply with subsection (a), (b),
or (c) of this Section within the time therein prescribed, or
fails to furnish such additional information as is requested
by the Attorney General within the required time; except that
the time may be extended by the Attorney General for a period
not to exceed 60 days upon a timely written request and for
good cause stated. Unless otherwise stated herein, the
Attorney General shall, by rule, set forth the standards used
to determine whether a registration shall be cancelled as
authorized by this subsection. Such standards shall be stated
as precisely and clearly as practicable, to inform fully those
persons affected. Notice of such cancellation shall be mailed
to the registrant at least 15 days before the effective date
thereof.
(g) The Attorney General in his or her discretion may,
pursuant to rule, accept executed copies of federal Internal
Revenue returns and reports as a portion of the foregoing
annual reporting in the interest of minimizing paperwork,
except there shall be no substitute for the independent
certified public accountant audit opinion required by this

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Act.
(h) The Attorney General after canceling the registration
of any trust or organization which fails to comply with this
Section within the time therein prescribed may by court
proceedings, in addition to all other relief, seek to collect
the assets and distribute such under court supervision to
other charitable purposes.
(h-5) The Attorney General, within a binding nonjudicial
settlement agreement, may accept a written assurance of
discontinuance of any method, act, or practice alleged to be a
violation of subsection (a), (b), or (c) from the person who
has engaged in the method, act, or practice. The Attorney
General may at any time reopen a matter in which an assurance
of discontinuance is accepted for further proceedings if the
Attorney General determines that reopening the matter is in
the public interest. Evidence of a violation of an assurance
of discontinuance is prima facie evidence of a violation of
this Act in any subsequent proceeding brought by the Attorney
General.
(i) Every trustee, person, and organization required to
file an annual report shall pay a filing fee of $15 with each
annual financial report filed pursuant to this Section. If a
proper and complete annual report is not timely filed, a late
filing fee of an additional $100 is imposed and shall be paid
as a condition of filing a late report. Reports submitted
without the proper fee shall not be accepted for filing.

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Payment of the late filing fee and acceptance by the Attorney
General shall both be conditions of filing a late report. All
late filing fees shall be used to provide charitable trust
enforcement and dissemination of charitable trust information
to the public and shall be maintained in a separate fund for
such purpose known as the Illinois Charity Bureau Fund.
(j) There is created hereby a separate special fund in the
State treasury to be known as the Illinois Charity Bureau
Fund. That Fund shall be under the control of the Attorney
General, and the funds, fees, and penalties deposited therein
shall be used by the Attorney General to enforce the
provisions of this Act and to gather and disseminate
information about charitable trustees and organizations to the
public.
(j-5) By January 1, 2026, the Attorney General must offer
charitable organizations the option of filing reports or
statements required under this Section electronically .
(k) The changes made to this Section by this amendatory
Act of the 103rd General Assembly are inoperative on and after
January 1, 2029.
(Source: P.A. 103-121, eff. 1-1-24.)
Section 10. The Charitable Trust Act is amended by
changing Section 7 as follows:
(760 ILCS 55/7) (from Ch. 14, par. 57)

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Sec. 7. (a) Except as otherwise provided, every trustee
subject to this Act shall, in addition to filing copies of the
instruments previously required, file with the Attorney
General periodic annual written reports under oath, setting
forth information as to the nature of the assets held for
charitable purposes and the administration thereof by the
trustee, in accordance with rules and regulations of the
Attorney General. By January 1, 2026, the Attorney General
must offer trustees the option of filing the periodic reports
required under this Section electronically.
(b) The Attorney General shall make rules and regulations
as to the time for filing reports, the contents thereof, and
the manner of executing and filing them. He may classify
trusts and other relationships concerning property held for a
charitable purpose as to purpose, nature of assets, duration
of the trust or other relationship, amount of assets, amounts
to be devoted to charitable purposes, nature of trustee, or
otherwise, and may establish different rules for the different
classes as to time and nature of the reports required to the
ends (1) that he shall receive reasonably current, annual
reports as to all charitable trusts or other relationships of
a similar nature, which will enable him to ascertain whether
they are being properly administered, and (2) that periodic
reports shall not unreasonably add to the expense of the
administration of charitable trusts and similar relationships.
The Attorney General may suspend the filing of reports as to a

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particular charitable trust or relationship for a reasonable,
specifically designated time upon written application of the
trustee filed with the Attorney General and after the Attorney
General has filed in the register of charitable trusts a
written statement that the interests of the beneficiaries will
not be prejudiced thereby and that periodic reports are not
required for proper supervision by his office.
(c) A copy of an account filed by the trustee in any court
having jurisdiction of the trust or other relationship, if the
account has been approved by the court in which it was filed
and notice given to the Attorney General as an interested
party, may be filed as a report required by this Section.
(d) The first report for a trust or similar relationship
hereafter established, unless the filing thereof is suspended
as herein provided, shall be filed not later than one year
after any part of the income or principal is authorized or
required to be applied to a charitable purpose. If any part of
the income or principal of a trust previously established is
authorized or required to be applied to a charitable purpose
at the time this Act takes effect, the first report, unless the
filing thereof is suspended, shall be filed within 6 months
after the effective date of this Act. In addition, every
trustee registered hereunder that received more than $25,000
in revenue during a trust fiscal year or has possession of more
than $25,000 of assets at any time during a fiscal year shall
file an annual financial report within 6 months of the close of

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the trust's or organization's fiscal year, and if a calendar
year the report shall be due on each June 30 of the following
year. Every trustee registered hereunder that did not receive
more than $25,000 in revenue or hold more than $25,000 in
assets during a fiscal year shall file only a simplified
summary financial statement disclosing only the gross
receipts, total disbursements, and assets on hand at the end
of the year, on forms prescribed by the Attorney General.
(e) The periodic reporting provisions of this Act do not
apply to any trustee of a trust which is the subject matter of
an adversary proceeding pending in the circuit court in this
State. However, upon commencement of the proceeding the
trustee shall file a report with the Attorney General
informing him of that fact together with the title and number
of the cause and the name of the court. Upon entry of final
judgment in the cause the trustee shall in like manner report
that fact to the Attorney General and fully account for all
periods of suspension.
(f) The Attorney General in his discretion may, pursuant
to rules and regulations promulgated by the Attorney General,
accept executed copies of federal Internal Revenue returns and
reports as a portion of the annual reporting. The report shall
include a statement of any changes in purpose or any other
information required to be contained in the registration form
filed on behalf of the organization. The report shall be
signed under penalty of perjury by the president and the chief

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fiscal officer of any corporate organization or by 2 trustees
if not a corporation. One signature shall be accepted if there
is only one officer or trustee.
(g) The Attorney General shall cancel the registration of
any trust or organization that wilfully fails to comply with
subsections (a), (b), (c) or (d) of this Section within the
time prescribed, and the assets of the organization may
through court proceedings be collected, debts paid and
proceeds distributed under court supervision to other
charitable purposes upon an action filed by the Attorney
General as law and equity allow. Upon timely written request,
the due date for filing may be extended by the Attorney General
for a period of 60 days. Notice of registration cancellation
shall be mailed by regular mail to the registrant at the
registration file address or to its registered agent or
president 21 days before the effective date of the
cancellation. Reports submitted after registration is canceled
shall require reregistration.
(h) Every trustee registered hereunder that received in
any fiscal year more than $25,000 in revenue or held more than
$25,000 in assets shall pay a fee of $15 along with each annual
financial report filed pursuant to this Act. If an annual
report is not timely filed, a late filing fee of an additional
$100 is imposed and shall be paid as a condition of filing a
late report. Reports submitted without the proper fee shall
not be accepted for filing.

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(Source: P.A. 90-469, eff. 8-17-97; 91-444, eff. 8-6-99.)
Section 99. Effective date. This Act takes effect upon
becoming law.