We agree with you, the group should register with the Illinois Attorney General Charitable Trust and Solicitations Bureau. The Charitable Trust Act governs funds held for a charitable purpose. Depending on if the group is soliciting funds, they may have to register under the Solicitation for Charity Act. Additionally, if your financial institution is acting as a trustee for the group, your institution may be subject to the Charitable Trust Act law as well.
Charitable Trust Act
The Charitable Trust Act requires trustees who hold property for charitable purposes with a value exceeding $4,000 to register within six months of receiving the income with the Illinois Attorney General, Charitable Trust and Solicitations Bureau. 760 ILCS 55/2760 ILCS 55/6. A “trustee” is any person, group of persons or other legal entity who holds property intended to be used for charitable purposes. 760 ILCS 55/314 Ill. Adm. Code 480.20(e). “Charitable purposes” includes funds that are to be applied for the benefit of people to provide them with “public building or recreational activities, or services which lessen the burden of government” among other things. 14 Ill. Adm. Code 480.20(c). We believe that a group that wants to open an account with a deposit of over $4,000 to help people in need and assist in the development of the town park would be required to register under the Charitable Trust Act.
As part of the registration requirements, the group must submit the initial $15 registration fee, a “Charitable Organization Registration Statement,” a list of all officers and their names, mailing addresses, and day time phone numbers, a copy of the IRS Determination Letter (or if there is no letter, then an explanation), all contracts with Professional Fund Raisers (if any), and if the group is not incorporated they must provide their constitution and all amendments and any by-laws. See the Illinois Attorney General’s List of Registration Requirements. Along with registering, the trustees must file annual financial reports. The annual financial report is due within six months after the end of an organization’s fiscal year. See Exhibit C Annual Report and Instructions and the Illinois Attorney General Charity Reporting Website.
Your Financial Institution
If your financial institution is only holding the property, you do not have any obligations with respect to the funds. 14 Ill. Adm. Code 480.20(a). However, if your financial institution is acting as the trustee, then you are required to file and register with the Attorney General. The only other requirement under the Charitable Trust Act is that you are also required to annually file a copy of the federal Internal Revenue report or return for the trust with the Attorney General. 760 ILCS 55/6(a).
Solicitation for Charity Act
The group might also have to comply with requirements of the Solicitation for Charity Act. The law requires every charitable organization, which solicits or intends to solicit contributions, to pay a fee and register with the Attorney General prior to solicitation. 225 ILCS 460/2(a). “Charitable organization” is defined as any benevolent, philanthropic, patriotic person who solicits and collects funds for charitable purposes. 225 ILCS 460/1(a). Registration under the Solicitation for Charity Act may upon request also satisfy the organization’s registration requirements under the Charitable Trust Act. 14 Ill. Adm. Code 400.30(a)(5). See 14 Ill. Adm. Code 400.Appendix A Charitable Organization Forms for the registration statement and instructions. Additionally, if the group does not intend to solicit and receive and does not actually receive contributions over $15,000 during a 12 month period ending December 31 of any year, the group does not have to file any other reports (other than the initial registration). 225 ILCS 460/3(a)(2).