Nonprofit organizations are governed by more than just the IRS. For example, the state of Illinois has a charitable trust act, under 760 ILCS 55. The Illinois Attorney General’s Charitable Trust Bureau handles registration for all charities soliciting funds from donors. Each nonprofit must file their annual form AG990-IL with the Illinois Attorney General’s office annually. Nonprofit organizations file form AG990-IL to declare contributions solicited in the past year.
Being a 501(c)(3) IRS registered charity may not be enough to comply with state laws. If you’re a nonprofit organization, doing business in the state of Illinois, you will want to check the Illinois Attorney General’s office to see if you are required to comply with the statute. Depending on when you solicit funds, how often you solicit and how much money you received you may have to comply with the state’s regulations.
Similarly, if you plan on donating to a charity, who is conducting business in the state of Illinois, you should perform a charity search on the Illinois Attorney General’s charity search webpage. You can enter the nonprofit’s legal name into their charity search and view the annual report submitted by the charity. The annual report lists a summary of all revenue, expenses and compensation of the three highest paid individuals during their fiscal year.
As a nonprofit, checking state laws will make sure your organization is compliant while soliciting funds. As a donor, you can make sure the funds your are donating are actually being utilized the way you intended; to help.