The majority of not-for-profit organizations in Illinois are organized under the General Not For Profit Corporation Act of 1986. Article 14 of the Act covers annual reporting requirements for Illinois not-for-profits. Here are four things nonprofits should know about the annual report requirements:
- Annual reports are mailed to a nonprofit’s registered agent each year, usually 60 days before the report is due. The form is simple and requires an organization to confirm basic information as well as update any new information regarding the names and addresses of the organization’s officers and directors. Because the form is sent to the registered agent, an organization should be diligent about updating its registered agent information with the state if the registered agent has been changed.
- The form has a $10 filing fee, with an additional $3 fee if submitted late.
- The State now allows annual reports to be filed online unless:
- The corporation owns property outside of Illinois and /or transacts business outside of Illinois or
- The corporation needs to enter more than six officers or six directors. If an organization has more than six directors, a separate paper filing is necessary.
- Failure to file an annual report may lead to the organization being administratively dissolved. The Secretary of State will send a notice of delinquency after 60 days and if no report is filed within 90 days thereafter, the organization will lose its good standing status. There is a $25 fee for reinstatement plus a $13 fee for each annual report that has not been filed.
The process of filing an annual report is relatively simple. Likewise, the costs associated are minimal and lower than in many other states. Organizations should make sure that their registered agent information is up to date and that annual report deadlines are calendared each year. Although it is simple to do, failing to take care of this could lead to major headaches down the road if an organization is involuntarily dissolved. Activities conducted by an organization that has been dissolved carry a cloud of uncertainty and can later be challenged in court. It is better, and easier, to avoid these complicated legal issues by being diligent and careful to stay up to date with the annual report.
If your organization has any other questions related to the annual report requirement or other compliance issues, please do not hesitate to contact the attorneys at Dalton & Tomich, PC.
