AG990-IL Filing⁚ A Comprehensive Guide
This guide provides a thorough overview of the Illinois Charitable Organization Annual Report (Form AG990-IL)‚ detailing filing procedures‚ deadlines‚ required attachments‚ and fees. It simplifies the process for small organizations and clarifies requirements for financial statement audits or reviews. Understanding this guide ensures compliance and avoids penalties.
Understanding the AG990-IL Form
The AG990-IL is the annual report mandated for all charitable organizations operating within Illinois. This form‚ filed with the Illinois Attorney General’s office‚ ensures transparency and accountability in the charitable sector. It requires detailed financial information‚ including revenue‚ expenses‚ assets‚ and liabilities. The form also necessitates reporting on fundraising activities‚ including the use of professional fundraisers. Specific reporting requirements vary based on the organization’s size and financial activity. Organizations exceeding certain contribution thresholds may be required to submit audited financial statements. Failure to complete the form accurately and comprehensively can lead to penalties.
The AG990-IL is crucial for maintaining compliance with Illinois state law. It allows the state to monitor the financial health and activities of charitable organizations‚ ensuring that donations are used for their intended purposes. Accurate completion of the form is essential for maintaining the organization’s good standing and tax-exempt status within the state.
Filing Deadlines and Extensions
The AG990-IL filing deadline is typically six months after the organization’s fiscal year-end. For example‚ if your fiscal year ends on June 30th‚ the report is due by December 31st. Meeting this deadline is crucial; late filings can result in penalties. However‚ extensions may be granted under specific circumstances. To request an extension‚ organizations must submit a written request to the Illinois Attorney General’s office before the original filing deadline. The request should clearly explain the reason for the delay and provide supporting documentation. The Attorney General’s office will review the request and determine whether to grant an extension‚ and for how long. It’s advisable to contact the office well in advance of the deadline to discuss any potential issues and explore the possibility of an extension if needed. Remember‚ even with an extension‚ filing remains mandatory; failure to file‚ even after an extension‚ will incur penalties.
Required Attachments and Fees
Filing the AG990-IL necessitates several key attachments‚ varying based on the organization’s size and activities. A copy of the IRS Form 990 (or 990-EZ‚ 990-PF) is always required‚ providing a consistent view of financial information. Audited or reviewed financial statements are often mandatory‚ depending on factors such as total contributions received. If contributions exceeded $300‚000‚ audited statements are usually needed; lower thresholds might trigger a review. Organizations utilizing paid professional fundraisers who raised over $25‚000 might also require audited statements. Additionally‚ if the organization engaged in any fundraising campaigns‚ the Attorney General’s Report of Individual Fundraising Campaign (Form IFC) must be attached for each campaign. Finally‚ a filing fee is typically associated with the AG990-IL submission; the exact amount should be confirmed with the Illinois Attorney General’s office‚ as it can change. Failure to include all required attachments will delay processing and may result in rejection of the filing. Ensure complete documentation before submission.
Simplified Filing for Small Organizations
Illinois recognizes that smaller charitable organizations often have less complex financial reporting needs. To ease the burden‚ a simplified filing option is available for organizations meeting specific criteria. Generally‚ this applies to organizations with gross contributions and assets of $25‚000 or less during their fiscal year. Under this simplified method‚ the AG990-IL requires reporting only the total revenue‚ total expenditures‚ and total assets at the fiscal year’s end (corresponding to lines A‚ G‚ and O on the form). This significantly reduces the amount of detailed financial information required. However‚ all required signatures remain necessary for a valid submission. While this simplifies the process‚ it’s crucial to ensure complete and accurate reporting of the limited data points required. Always verify eligibility for simplified filing with the Illinois Attorney General’s office before utilizing this option to avoid potential penalties for non-compliance. The simplified filing option helps smaller nonprofits meet reporting obligations without excessive administrative overhead.
Audited vs. Reviewed Financial Statements
The type of financial statement required for your AG990-IL filing depends on your organization’s financial activity. Illinois law mandates audited financial statements for organizations whose contributions exceed certain thresholds. These thresholds have varied over time‚ so it’s crucial to consult the most current AG990-IL instructions. For reports due after January 1‚ 2010‚ exceeding $150‚000 or $300‚000 in contributions might necessitate an audit. Additionally‚ if your organization utilized a paid professional fundraiser who generated contributions surpassing $25‚000‚ an audit is typically required. A reviewed financial statement‚ a less extensive process than an audit‚ might suffice if your organization does not meet these criteria. Reviewed statements offer a level of assurance‚ though not as comprehensive as an audit. The AG990-IL instructions clearly define the requirements for each type of statement and the circumstances necessitating one over the other. Failing to provide the correct type of financial statement can result in delays or rejection of your filing.
Reporting Contributions and Expenditures
Accurate reporting of contributions and expenditures is paramount when filing Form AG990-IL. The definition of “contribution” aligns with the Solicitation for Charity Act‚ and failure to report all contributions as defined by this act renders your filing incomplete. The AG990-IL requires detailed reporting of all financial inflows‚ including donations‚ grants‚ and proceeds from fundraising events. Similarly‚ a comprehensive accounting of all expenditures is necessary. This includes program service expenses‚ administrative costs‚ fundraising expenses‚ and any other financial outflows. Supporting documentation‚ such as bank statements and receipts‚ may be requested to verify the reported figures. Organizations must meticulously track and record all financial transactions throughout the fiscal year to ensure accurate and complete reporting on the AG990-IL. The level of detail required might vary based on your organization’s size and activities but thoroughness is crucial for compliance.
Completing the Form⁚ Section-by-Section Guide
Navigating the AG990-IL can be simplified with a section-by-section approach. Begin by carefully reviewing the instructions provided by the Illinois Attorney General’s office. Each section requires specific information; ensure accuracy in every entry. Start with the organization’s identifying information‚ ensuring correct legal name‚ address‚ and tax identification number. Next‚ meticulously record financial data‚ including income from various sources (donations‚ grants‚ program services‚ etc.) and expenses categorized according to their nature (program services‚ administrative costs‚ fundraising‚ etc.). Pay close attention to reporting requirements for contributions‚ as defined by the Solicitation for Charity Act. If using the simplified filing option‚ ensure you meet the eligibility criteria. Remember to include all necessary attachments‚ such as audited or reviewed financial statements (if applicable)‚ IRS Form 990‚ and any other supporting documentation as specified in the instructions. Thoroughly review the completed form before submission to avoid errors and ensure compliance with all state regulations.
Online Filing and Digital Signatures
While the provided text doesn’t specify online filing options for the AG990-IL‚ many states offer electronic filing for similar forms. Check the Illinois Attorney General’s website for updates on available electronic filing portals. If an online portal is available‚ familiarize yourself with its requirements and procedures. This may involve creating an account‚ uploading the completed AG990-IL form and required attachments in a specific format (PDF is common)‚ and paying any applicable fees online. Digital signatures are often required for electronic filings. Ensure you understand the acceptable digital signature methods and obtain a valid digital signature before submitting your form. If the Illinois Attorney General’s office doesn’t currently offer online filing‚ submitting a paper copy is still an acceptable option. Remember to mail your completed form with all necessary attachments and payment to the designated address well before the deadline to avoid penalties. Always refer to the official instructions for the most up-to-date information.
Contacting the Illinois Attorney General’s Office
For questions regarding the AG990-IL form‚ filing procedures‚ or clarification on specific requirements‚ contacting the Illinois Attorney General’s Office is crucial. Their website should provide contact information‚ including phone numbers‚ email addresses‚ and possibly a dedicated online inquiry form. Before contacting them‚ gather all relevant information‚ such as your organization’s name‚ EIN‚ and the tax year for which you are filing. Clearly state your question or concern to ensure a prompt and accurate response. If you need assistance with downloading forms or encounter technical difficulties‚ the provided text suggests contacting the Charitable Trust Bureau at a specific phone number. Be aware of potential wait times‚ especially during peak filing seasons. Consider checking the website’s FAQ section first to see if your question has already been addressed. Properly documenting your communication with the Attorney General’s office‚ including date‚ method of contact‚ and the response received‚ is recommended for your records.
Penalties for Non-Compliance
Failure to file the AG990-IL form by the mandated deadline‚ or submitting an incomplete or inaccurate report‚ can result in significant penalties from the Illinois Attorney General’s office. These penalties can range from late filing fees to more substantial fines‚ depending on the severity and nature of the non-compliance. The provided text emphasizes that a report is not considered filed unless complete; failure to report contributions as defined by the Solicitation for Charity Act renders the form incomplete. Furthermore‚ intentional misrepresentation or omission of information can lead to even more severe consequences‚ potentially including legal action. The specific amounts of penalties may vary and are subject to change‚ so it’s essential to consult the official Illinois Attorney General’s website or contact their office directly for the most up-to-date information on penalties. Maintaining accurate records and adhering strictly to filing deadlines are crucial to mitigate the risk of penalties. Proactive compliance is always the best approach to avoid financial and legal repercussions.
Frequently Asked Questions (FAQs)
Many questions arise regarding the AG990-IL filing. Common inquiries include the precise filing deadlines and the possibility of extensions. Clarification is often sought on the types of financial statements required (audited vs. reviewed) based on contribution amounts and the use of professional fundraisers. The specific attachments needed‚ such as copies of IRS Form 990 and details about required signatures‚ frequently require clarification. The simplified filing option for smaller organizations‚ often involving only total revenue‚ expenditures‚ and year-end assets‚ generates many questions about eligibility and reporting specifics. Concerns about online filing methods and digital signature requirements also frequently arise. Finally‚ questions about contacting the Illinois Attorney General’s office for assistance or clarification are common. Detailed answers to these frequently asked questions can be found on the Illinois Attorney General’s website or through direct contact with their office. The website often contains helpful guides and additional resources for navigating the AG990-IL filing process.