94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5383

 

Introduced 1/26/2006, by Rep. Randall M. Hultgren

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 460/1   from Ch. 23, par. 5101
225 ILCS 460/2.5 new
225 ILCS 460/7.3 new

    Amends the Solicitation for Charity Act. Provides that charitable organization employees who are directly involved in the solicitation, receipt, or transportation of any motor vehicle for a charitable purpose must, prior to any solicitation, receipt, or transportation, register with the Attorney General in the form and manner prescribed by the Attorney General. Sets forth requirements for motor vehicle donations, including requirements for charitable organizations and third party contractors that pick up and dispose of vehicles. Effective July 1, 2006.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5383 LRB094 18036 RAS 53341 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Solicitation for Charity Act is amended by
5 changing Section 1 and by adding Sections 2.5 and 7.3 as
6 follows:
 
7     (225 ILCS 460/1)  (from Ch. 23, par. 5101)
8     Sec. 1. The following words and phrases as used in this Act
9 shall have the following meanings unless a different meaning is
10 required by the context.
11     (a) "Charitable organization" means any ." Any benevolent,
12 philanthropic, patriotic, or eleemosynary person or one
13 purporting to be such which solicits and collects funds for
14 charitable purposes and includes each local, county, or area
15 division within this State of such charitable organization,
16 provided such local, county or area division has authority and
17 discretion to disburse funds or property otherwise than by
18 transfer to any parent organization.
19     (a-5) "Charitable organization employee" means an
20 individual employed by a charitable organization.
21     (b) "Contribution" means the ." The promise or grant of any
22 money or property of any kind or value, including the promise
23 to pay, except payments by union members of an organization.
24 Reference to the dollar amount of "contributions" in this Act
25 means in the case of promises to pay, or payments for
26 merchandise or rights of any other description, the value of
27 the total amount promised to be paid or paid for such
28 merchandise or rights and not merely that portion of the
29 purchase price to be applied to a charitable purpose.
30 Contribution shall not include the proceeds from the sale of
31 admission tickets by any not-for-profit music or dramatic arts
32 organization which establishes, by such proof as the Attorney

 

 

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1 General may require, that it has received an exemption under
2 Section 501(c)(3) of the Internal Revenue Code and which is
3 organized and operated for the presentation of live public
4 performances of musical or theatrical works on a regular basis.
5 For purposes of this subsection, union member dues and donated
6 services shall not be deemed contributions.
7     (c) "Person" means any ." Any individual, organization,
8 group, association, partnership, corporation, trust or any
9 combination of them.
10     (d) "Professional fund raiser" means any ." Any person who
11 for compensation or other consideration, conducts, manages, or
12 carries on any solicitation drive or campaign in this State or
13 from this State or on behalf of a charitable organization
14 residing within this State for the purpose of soliciting
15 contributions for or on behalf of any charitable organization
16 or any other person, or who engages in the business of, or
17 holds himself out to persons in this State as independently
18 engaged in the business of soliciting contributions for such
19 purposes. A bona fide director, officer, employee or unpaid
20 volunteer of a charitable organization shall not be deemed a
21 professional fund raiser unless the person is in a management
22 position and the majority of the individual's salary or other
23 compensation is computed on a percentage basis of funds to be
24 raised, or actually raised.
25     (e) "Professional fund raising consultant" means any ." Any
26 person who is retained by a charitable organization or trustee
27 for a fixed fee or rate that is not computed on a percentage of
28 funds to be raised, or actually raised, under a written
29 agreement, to only plan, advise, consult, or prepare materials
30 for a solicitation of contributions in this State, but who does
31 not manage, conduct or carry on a fundraising campaign and who
32 does not solicit contributions or employ, procure, or engage
33 any compensated person to solicit contributions and who does
34 not at any time have custody or control of contributions. A
35 volunteer, employee or salaried officer of a charitable
36 organization or trustee maintaining a permanent establishment

 

 

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1 or office in this State is not a professional fundraising
2 consultant. An attorney, investment counselor, or banker who
3 advises an individual, corporation or association to make a
4 charitable contribution is not a professional fundraising
5 consultant as a result of the advice.
6     (f) "Charitable purpose" means any ." Any charitable,
7 benevolent, philanthropic, patriotic, or eleemosynary purpose.
8     (g) "Charitable Trust" means any relationship whereby
9 property is held by a person for a charitable purpose.
10     (h) "Education Program Service" means any activity which
11 provides information to the public of a nature that is not
12 commonly known or facts which are not universally regarded as
13 obvious or as established by common understanding and which
14 informs the public of what it can or should do about a
15 particular issue.
16     (i) "Primary Program Service" means the program service
17 upon which an organization spends more than 50% of its program
18 service funds or the program activity which represents the
19 largest expenditure of funds in the fiscal period.
20     (j) "Professional solicitor" means any natural person who
21 is employed or retained for compensation by a professional fund
22 raiser to solicit contributions for charitable purposes from
23 persons in this State or from this State or on behalf of a
24 charitable organization residing within this State.
25     (k) "Program Service Activity" means the actual charitable
26 program activities of a charitable organization for which it
27 expends its resources.
28     (l) "Program Service Expense" means the expenses of
29 charitable program activity and not management expenses or fund
30 raising expenses. In determining Program Service Expense,
31 management and fund raising expenses may not be included.
32     (m) "Public Safety Personnel Organization" means any
33 person who uses any of the words "officer", "police",
34 "policeman", "policemen", "troopers", "sheriff", "law
35 enforcement", "fireman", "firemen", "paramedic", or similar
36 words in its name or in conjunction with solicitations, or in

 

 

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1 the title or name of a magazine, newspaper, periodical,
2 advertisement book, or any other medium of electronic or print
3 publication, and is not a governmental entity. No organization
4 may be a Public Safety Personnel Organization unless 80% or
5 more of its voting members or trustees are active, retired, or
6 disabled police officers, peace officers, firemen, fire
7 fighters, emergency medical technicians - ambulance, emergency
8 medical technicians - intermediate, emergency medical
9 technicians - paramedic, ambulance drivers, or other medical
10 assistance or first aid personnel.
11     (m-5) "Public Safety Personnel" includes police officers,
12 peace officers, firemen, fire fighters, emergency medical
13 technicians - ambulance, emergency medical technicians -
14 intermediate, emergency medical technicians - paramedic,
15 ambulance drivers, and other medical assistance or first aid
16 personnel.
17     (n) "Trustee" means any person, individual, group of
18 individuals, association, corporation, not for profit
19 corporation, or other legal entity holding property for or
20 solicited for any charitable purpose; or any officer, director,
21 executive director or other controlling persons of a
22 corporation soliciting or holding property for a charitable
23 purpose.
24 (Source: P.A. 91-301, eff. 7-29-99.)
 
25     (225 ILCS 460/2.5 new)
26     Sec. 2.5. Charitable organization employee registration.
27 Any charitable organization employee who is directly involved
28 in the solicitation, receipt, or transportation of any motor
29 vehicle, including without limitation automobiles,
30 motorcycles, and boats, for a charitable purpose must, prior to
31 any solicitation, receipt, or transportation, register with
32 the Attorney General in the form and manner prescribed by the
33 Attorney General. The Attorney General may adopt any rules and
34 procedures necessary for the administration of this Section.
 

 

 

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1     (225 ILCS 460/7.3 new)
2     Sec. 7.3. Motor vehicle donations.
3     (a) To receive funds derived from the sale of a motor
4 vehicle donated to it, including without limitation
5 automobiles, motorcycles, and boats, a charitable organization
6 registered under this Act must:
7         (1) be designated as a 501(c)(3) corporation under the
8     Internal Revenue Code and operating in Illinois;
9         (2) be in good standing with the Illinois Secretary of
10     State;
11         (3) keep all mandatory 990 tax returns up to date and
12     filed with the Attorney General's Charitable Trust
13     Division;
14         (4) comply with Internal Revenue Service (IRS)
15     regulations governing vehicle donations; and
16         (5) be listed on IRS Publication 78 as an organization
17     qualified to receive deductible donations.
18     (b) If a charitable organization uses a third party
19 contractor to pick up and dispose of donated motor vehicles,
20 then the third party contractor shall do all of the following:
21         (1) Be licensed or registered under the Illinois
22     Vehicle Code as a used vehicle dealer, tower, or vehicle
23     auctioneer.
24         (2) Be registered as a business within the municipality
25     of operation.
26         (3) Develop a written contract specifying the services
27     to be provided to the charitable organization and the costs
28     of those services. The contract must include provisions
29     for:
30             (A) procedures for the pick up, physical
31         assessment, and disposal of the vehicle;
32             (B) procedures for the monthly reporting to the
33         charitable organization of the year, make, model, and
34         method of disposal of each donated motor vehicle and an
35         assessment of the condition and range of value of each
36         donated motor vehicle; and

 

 

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1             (C) vehicle disposition reports that list the
2         sale, salvage, or auction price of donated vehicles,
3         minus the costs for services, such as towing,
4         commissions, and handling, as well as a picture of the
5         vehicle taken before disposition.
6     (c) A charitable organization must provide the following
7 documentation to the donor of a motor vehicle:
8         (1) proof of compliance with IRS rules governing
9     vehicle donation charitable deductions;
10         (2) within 30 days after the donation is received by
11     the charitable organization, a letter specifying the date
12     the donated motor vehicle was picked up and the year, make,
13     and model of the donated motor vehicle; and
14         (3) after disposition of the vehicle, a letter
15     specifying the final amount of the donation exclusive of
16     all fees, such as towing fees, commission payments, or
17     title transfer fees.
18     (d) A charitable organization receiving funds or vehicles
19 pursuant to this Section must file with the IRS all information
20 required by law.
21     (e) A charitable organization, or its designee, receiving
22 funds derived from the sale of a motor vehicle donated to the
23 organization must complete the State of Illinois Sales Tax
24 Transaction Return (ST-556).
25     (f) A charitable organization to which a motor vehicle is
26 donated, or its designee, must complete a State of Illinois
27 Application for Vehicle Title and Registration form to insure
28 that once the donor relinquishes the donated vehicle the
29 vehicle's ownership and registration are transferred.
 
30     Section 99. Effective date. This Act takes effect July 1,
31 2006.