Fill a Valid Illinois Ag990 Template

Illinois Ag990 - Usage Guidelines

Filling out the Illinois AG990-IL, the Charitable Organization Annual Report, is a critical task for maintaining compliance with state regulations. This form is used to provide the Illinois Attorney General's office with important information about the nonprofit's financial activities and operations during the fiscal year. Timely and accurate completion of this form ensures that the charity remains in good standing and is able to continue its vital work. Below are the steps to complete the form accurately.

1. Begin with the section "For Office Use Only" at the top of the form and leave it blank as it is intended for official use by the Attorney General's office.
2. Enter the organization's Federal ID number, the report's fiscal period start and end dates, and check whether contributions to the organization are tax deductible.
3. Provide the legal name and mailing address of the organization, including city, state, and ZIP code.
4. Fill in the year-end amounts for assets, liabilities, and net assets.
5. In the Summary of All Revenue section, enter the percentage and amount for public support, contributions, program service revenue, government grants, membership dues, and other revenues, then total these in the provided space.
6. Under Summary of All Expenditures, detail the amounts spent on operating charitable program expenses, education program service expenses, grants to other charitable organizations, and then sum these up. Also, include management and general expense, fundraising expense, and calculate the total expenditures for the period.
7. For the section on Professional Fundraisers and Consultants, if applicable, report the total amount raised and the fees/expenses associated with these activities. Subtract the expenses from the total raised to determine the net received by the charity.
8. Report compensation for the three highest-paid individuals in the organization, including their name and title.
9. Describe your charitable programs, using the provided codes for the three highest by dollar expended. Additional details may be listed on the back as instructed.
10. If applicable, answer the compliance questions regarding court actions, misdemeanors or felonies, conflicts of interest, investments, property holding, use of professional fundraisers, cost allocations, use of restricted funds, refusal of registration or tax exemption, and any financial misconduct.
11. List the name and address of the three largest financial institutions where the organization maintains its accounts and provide the name and telephone number of a contact person.
12. Ensure all required attachments accompany your report. This includes a copy of the IRS return, audited financial statements, and a copy of Form IFC if a professional fundraiser was used.
13. Review the declaration at the bottom of the form. The President or Trustee and Treasurer or Trustee must print their names, sign, and date the report. The preparer, if different from the above, should also print their name, sign, and date.
14. Include the appropriate fees with your report: $15.00 Annual Report Filing Fee and, if applicable, the $100.00 Late Report Filing Fee. Make checks payable to the Illinois Charity Bureau Fund.
15. Finally, submit the completed form and all attachments to the State of Illinois Charitable Trust Bureau at the address provided at the top of the form before the deadline to avoid penalties.

Accurate and complete filing of the AG990-IL form is essential for the continuation of a charity's operations and its compliance with Illinois law. Carefully reviewing all sections of the form and including all necessary documentation will ensure that the process is smooth and efficient.

1. What is the Illinois AG990-IL form?

   The Illinois AG990-IL form is an annual report required by the state for charitable organizations. It includes detailed financial information, such as revenue and expenditures, and must be filed with the Attorney General's Charitable Trust Bureau. The report helps ensure transparency and accountability of charitable organizations operating in Illinois.

2. Who needs to file the AG990-IL form?

   Most charitable organizations registered in the State of Illinois are required to file the AG990-IL form. This includes organizations that are tax-exempt under federal law. It's important to check with the Illinois Attorney General's Charitable Trust Bureau to verify if your organization needs to file the report.

3. What documents are required to be attached with the AG990-IL form?

   • Copy of IRS return
   • Audited Financial Statements
   • Copy of Form IFC

   These attachments provide additional financial details and context about the organization's activities during the fiscal year.

4. What are the fees associated with filing the AG990-IL?

   There is a $15.00 annual report filing fee for submitting the AG990-IL form. Organizations that submit their report late are subject to a $100.00 late report filing fee. These fees should be made payable to the Illinois Charity Bureau Fund.

5. When is the AG990-IL form due?

   Reports are due within six months of the end of your fiscal year. It’s crucial to submit the form and any required documentation by this deadline to avoid the late filing fee.

6. What happens if the organization fails to file the AG990-IL form or files it late?

   If an organization fails to file the AG990-IL form or files it late, it faces a $100.00 penalty. Additionally, consistent failure to file or late filings can lead to further penalties, including the suspension of the organization's registration or tax-exempt status in Illinois.

Filling out the Illinois AG990 form is a crucial step for charitable organizations in maintaining compliance with state regulations. However, failure to complete this form correctly can result in unnecessary penalties and delays. Here are six common mistakes made during the completion process:

1. Incorrect or Incomplete Revenue and Expenditure Reporting: Organizations often make errors by reporting inaccurate amounts or leaving sections incomplete in the Summary of All Revenue Items and Summary of All Expenditures sections. Accurate figures are crucial for a transparent overview of the organization's financial activities.
2. Failure to Attach Required Documents: The AG990 form requires attachments such as copies of the IRS return, audited financial statements, and the Form IFC for professional fundraisers. Overlooking the need to include these documents can lead to the submission being deemed incomplete.
3. Not Updating Organization Information: Changes to the organization’s legal name, address, or officer details must be reflected in the form. Outdated information can cause confusion and hinder communication between the state and the organization.
4. Incorrectly Calculated Fees: The form outlines specific filing fees and late penalties. Organizations sometimes miscalculate these amounts due to oversight or misunderstanding of the instructions, leading to underpayment or overpayment.
5. Omission of Professional Fundraiser Details: If the organization uses the services of a professional fundraiser, details of the amount raised and fees/expenses must be accurately provided. Failing to disclose or inaccurately reporting these figures misrepresents fundraising efficiency and overheads.
6. Incorrect Fiscal Period Reporting: A common mistake is reporting the wrong fiscal period dates. This not only affects the annual reporting cycle but can also misalign financial data, impacting the accuracy of the report.

Avoiding these mistakes requires a thorough review of the form instructions, meticulous record-keeping, and, when necessary, seeking clarification from the Illinois Attorney General's Charities Bureau. Compliance benefits the organization by ensuring it remains in good standing, thus preserving public trust and the ability to carry out its mission.

When handling the Illinois AG990-IL form, charitable organizations are often required to prepare additional documentation to ensure full compliance and comprehensive reporting of their activities. This process aids in maintaining transparency and accountability in their operations.

• IRS Return (Form 990): This is a mandatory document for most tax-exempt organizations, detailing their financial activities, governance, and compliance information over the fiscal year. It serves as a public disclosure, providing a clear picture of the organization's operations and financial health.
• Audited Financial Statements: These provide an in-depth look at the organization's financial status, including assets, liabilities, revenue, and expenses. Prepared by an independent auditor, these statements offer assurance that the financial information presents a true and fair view of the organization's finances.
• Form IFC - Attorney General Report of Individual Fundraising Campaign: Charities that hire professional fundraisers are required to submit this form for each campaign. It details the amount raised, the fees and expenses incurred, and the net amount received by the charity from the fundraising efforts.
• Raffle and Poker Runs Act Forms: If the organization conducts raffles or poker runs as part of its fundraising activities, it must comply with the Raffle and Poker Runs Act and submit the necessary documentation to the county or municipality where the event will be held.
• Charitable Trust Act Registration: For organizations that hold assets in trust for charitable purposes, registration under the Charitable Trust Act is essential. This involves providing detailed information about the trust, its operations, and financial status to ensure proper oversight and compliance with state laws.

Together, these documents support the Illinois AG990-IL form in painting a comprehensive picture of the charity's activities, finances, and compliance with state and federal regulations. They play a critical role in fostering transparency and accountability within the charitable sector. By diligently preparing and submitting these forms, organizations can demonstrate their commitment to ethical practices and uphold their responsibilities to their stakeholders and the public.

The Illinois AG990 form is similar to the IRS Form 990. Both documents serve as annual reporting mechanisms, though they cater to different governmental levels. The AG990 is designed for the Illinois Attorney General's office, focusing on charitable organizations within the state, whereas the IRS Form 990 addresses the federal level, fulfilling the Internal Revenue Service's requirements. Both forms collect detailed information about the organization's finances, including revenue and expenses, governance practices, and compliance with applicable laws. They also require a breakdown of program services and achievements to justify the organization's tax-exempt status. By comparing contributions, spending on programs, management expenses, and fundraising costs, these documents provide transparency and hold organizations accountable to donors, government agencies, and the public.

Another related document is the Form IFC (Independent Fundraising Counsel). Similar to sections in the AG990 form that deal with fundraising activities, the Form IFC is dedicated solely to reporting on professional fundraising consultants hired by the charitable organization. This form details the amount paid to these consultants and the results of their fundraising efforts. While the AG990 encompasses a broad overview of an organization's financial health, including fundraising efforts, the Form IFC dives deep into the specifics of fundraising consultants' activities, providing a more focused view on how external fundraising efforts are managed, the fees involved, and the net proceeds benefiting the charity. This targeted reporting ensures that fundraising practices are transparent and in line with regulatory expectations.

Completing the Illinois AG990-IL form, an essential document for charitable organizations reporting to the state, demands careful attention to detail and accuracy. To ensure the report fulfills the requirements of the Illinois Attorney General's Office, adhering to the following dos and don'ts is crucial.

Do's when filling out the Illinois AG990 form:

• Verify all data before submission, ensuring that the financial figures and other information align with your records and the documents attached.
• Attach all required documents, including a copy of the IRS return, audited financial statements, and the Form IFC if applicable, to avoid processing delays or rejections.
• Review the form for completeness, checking each section to confirm that no required information has been overlooked.
• Consult the provided instructions carefully to correctly classify revenues and expenses, ensuring that your organization's financial activities are accurately represented.

Don'ts when filling out the Illinois AG990 form:

• Avoid estimating figures, as accuracy is paramount. All financial data should be exact and supported by your financial records.
• Do not leave any required fields blank. If a section does not apply to your organization, indicate with "N/A" or "0," as appropriate, to demonstrate that the question was not overlooked.
• Refrain from submitting the form without the authorized signature of the President or Treasurer, which serves as a declaration that the information provided is true and complete.
• Do not ignore deadlines. Submitting the report after the due date can lead to penalties. Planning ensures that the form and all accompanying documents are prepared and reviewed well in advance.

There are numerous misconceptions about the Illinois AG990-IL form, a crucial document for charitable organizations in Illinois. Addressing these misunderstandings is essential for compliance and to ensure that charitable activities proceed without legal hitches. Here are six common misconceptions:

• The AG990-IL is optional for small charities. One common misunderstanding is that smaller charities or those that perceive themselves as having minimal financial activity are not required to file the AG990-IL form. In reality, most charitable organizations operating in Illinois must file this form annually, regardless of their size or amount of contributions received. The requirement helps maintain transparency and accountability within the charitable sector.
• Only financial information is reported. While financial transparency is a core component of the AG990-IL form, organizations are also mandated to provide other information, such as details of high-paid personnel, descriptions of charitable programs, and disclosures of certain types of relationships and transactions that might affect the charity’s operation and governance.
• Tax-exempt status automatically exempts organizations from filing. Another misconception is the belief that organizations exempt from federal taxes are also exempt from filing the AG990-IL form. Although tax-exempt status may relieve an organization from some state or federal tax obligations, it does not exempt it from the filing requirement with the Illinois Attorney General's office, which serves a regulatory and oversight function separate from the IRS.
• Late fees are negotiable or can be easily waived. The Illinois Attorney General's office imposes strict penalties for late submissions, including a $100.00 late report filing fee. Contrary to what some believe, these fees are not negotiable and are seldom waived. Organizations must plan accordingly to meet filing deadlines and avoid unnecessary penalties.
• All attachments are optional if core form is submitted. The form instructions clearly state that all required attachments must accompany the report. This includes copies of IRS returns, audited financial statements, and lists of officers and directors, among others. Failure to include all necessary attachments can result in the report being considered incomplete, potentially incurring additional fees or placing the organization’s good standing at risk.
• The filing process is just a formality that has no real impact. Filing the AG990-IL form is not merely a bureaucratic hurdle; it plays a significant role in maintaining the integrity of the nonprofit sector. It provides valuable information to the public, including potential donors, about how an organization is run, how it spends its money, and the causes it supports. This transparency fosters trust and confidence in the charitable sector as a whole.

Understanding these misconceptions about the Illinois AG990-IL form can greatly assist charitable organizations in complying with state requirements, thus ensuring their continued ability to contribute to their causes effectively and legally.

Filling out the Illinois AG990 form is an essential duty for charitable organizations operating within the state. It ensures transparency and accountability, helping maintain public trust. Here are ten key takeaways to help navigate this form:

• The form must be submitted annually, within six months of the fiscal year-end, ensuring compliance and avoiding penalties.
• Attachments are crucial; always include a copy of the IRS return, audited financial statements, and Form IFC if applicable.
• A fee accompanies the form: a $15.00 Annual Report Filing Fee, with a late submission incurring a $100.00 penalty, highlighting the importance of timely filing.
• Organization details, including legal name, address, and federal ID number, must be accurately provided, ensuring the charity is properly identified.
• The form requires detailing whether contributions to the organization are tax-deductible, directly affecting donor willingness to contribute.
• Financial summaries are a core component, demanding transparency about assets, liabilities, net assets, and all revenue and expenditure during the year.
• Charitable activities must be described, showcasing the organization's impact and justifying its charitable status.
• Professional fundraiser and consultant activities should be reported, offering insight into fundraising efficiency and external partnerships.
• Disclosures regarding legal and ethical standing are required, including any court action, fines, or significant conflicts of interest, maintaining integrity.
• The signatory declares all provided information true under penalty of perjury, underscoring the seriousness of the document.

Adhering to these guidelines ensures a smooth filing process and reinforces the organization's commitment to transparency and lawful operation.