Illinois Nonprofit Requirements: Attorney General, Audit Thresholds and State Reports
Federal exemption is only part of the picture. Illinois has its own requirements for organizations that hold charitable assets, raise money in the state or are incorporated there. This page covers the items most often missed. Confirm the details with the state agencies before you file.
Illinois Attorney General: Charitable Trust Bureau
- Charities that solicit in Illinois or hold property for charitable purposes generally register with the Attorney General’s Charitable Trust Bureau and file an annual financial report (Form AG990-IL). Some organizations, such as churches and schools, are excluded.
- Due date: a complete annual report with all attachments and fees is due within six months after the end of the fiscal year (June 30 for a calendar-year organization), according to the AG’s filing instructions. A report is not considered filed unless it is complete.
- Read the current AG instructions for the filing fee and for extension rules; they have changed over time.
Audit and review thresholds
Under an amendment to the Solicitation for Charity Act (Public Act 103-0121, effective January 1, 2024), a charity whose fundraising is carried out only by its own staff and volunteers must file with its annual report:
| Contributions received | What must be filed with the annual report |
|---|---|
| More than $500,000 | An audit |
| More than $300,000 but not more than $500,000 | Reviewed financial statements (instead of an audit) |
The Attorney General’s notice says the audit threshold for charities that use a paid professional fundraiser is still $25,000. The new thresholds apply to annual reports with an initial due date (ignoring extensions) after January 1, 2024. “Contributions” is defined broadly under the Act, so ask us how to count yours. Audits and reviews are performed by independent CPAs; plan for them early.
Source: Illinois Attorney General notice.
Illinois Secretary of State
A not-for-profit corporation organized in Illinois files an annual report with the Secretary of State. The filing window is tied to the corporation’s anniversary month, so the date depends on when it was incorporated. Confirm the window and the fee on the Secretary of State’s Business Services site, and keep the registered agent and office current. Failing to file can lead to penalties and, eventually, administrative dissolution.
State tax exemptions are separate
Federal recognition does not by itself exempt an organization from Illinois sales tax or property tax. These are separate applications with their own rules. If your organization buys supplies, holds events or owns a building, ask whether a state exemption has been requested.
Out-of-state activity
Many states require registration before you solicit their residents, including online. If your appeals or events reach donors in other states, add a state-by-state check to your annual calendar. We help with this as part of an annual compliance review.
General educational information. Filing rules, thresholds, penalties and state requirements depend on individual facts and change over time. Confirm them on irs.gov and with your state regulators, and consult a qualified professional before filing a return or an application. This site is an independent guide and is not affiliated with the IRS.