AG990-IL Instructions: A Comprehensive Guide
Form AG990-IL, the Illinois Charitable Organization Annual Report, requires completion by registered Illinois charities. This report, for the year ending December 31, 2023, must be filed by November 15, 2024.
What is Form AG990-IL?
Form AG990-IL is officially designated as the Illinois Charitable Organization Annual Report. It’s a crucial financial disclosure document mandated by the Illinois Attorney General’s office. This form serves as the primary mechanism for charitable organizations operating within the state to demonstrate accountability and transparency in their financial dealings.
Essentially, it’s a comprehensive overview of an organization’s financial health, detailing its assets, liabilities, and net assets. The report requires detailed information regarding revenue sources, expenditures, and program activities. It’s not merely a reporting requirement; it’s a vital tool for the Illinois Charity Bureau to oversee and regulate the charitable sector, ensuring funds are utilized appropriately for their intended purposes.
The form itself is revised periodically – the current revision date referenced is March 2005, though updates occur. Organizations must utilize the correct version for the reporting year. A signed return, dated and completed by an authorized officer, is essential for compliance.
Purpose of the Illinois Charitable Organization Annual Report
The primary purpose of the Illinois Charitable Organization Annual Report (Form AG990-IL) is to provide the Illinois Attorney General’s office, and the public, with a clear and accurate financial picture of registered charitable organizations. This ensures accountability and transparency within the state’s non-profit sector.
Specifically, the report allows the Charity Bureau to monitor how charitable funds are being collected and spent, verifying that resources are directed towards the organization’s stated mission. It helps prevent misuse of charitable donations and identifies potential fraud or mismanagement. The data collected is used for regulatory oversight and enforcement actions when necessary.
Furthermore, the AG990-IL promotes public trust. By making financial information readily available, donors can make informed decisions about where to contribute their resources. It demonstrates a commitment to ethical practices and responsible stewardship of funds, fostering confidence in the Illinois charitable landscape.
Who Must File Form AG990-IL?
Form AG990-IL must be filed by any charitable organization operating within the State of Illinois and currently registered with the Illinois Attorney General’s office. This includes a broad range of non-profit entities, such as public charities, private foundations, and other organizations soliciting contributions from the public.
Specifically, “Soliciting Organizations” are legally obligated to submit this annual report. This encompasses groups actively requesting donations, regardless of the method used – direct mail, online campaigns, events, or other fundraising activities. Organizations that received donations, even if unsolicited, generally fall under this filing requirement.
However, certain exemptions may apply. Organizations with minimal gross revenues may have different reporting obligations. It’s crucial to consult the Illinois Attorney General’s website or seek legal counsel to determine specific filing requirements based on your organization’s individual circumstances and revenue levels.
Filing Deadline and Where to Submit
The AG990-IL form, covering the year ended December 31, 2023, has a firm filing deadline of November 15, 2024. Missing this deadline can result in penalties and potential loss of good standing with the Illinois Attorney General’s office. Therefore, timely submission is critical for all registered charitable organizations.
The completed and signed return (by an authorized officer, using their full name and date) must be submitted to the following address:
Office of the Attorney General
Charitable Bureau
(Specific address details can be found on the official Illinois Attorney General website, as addresses may be subject to change.)
Please note that an Annual Report Filing Fee of $15 is required for organizations with gross revenues exceeding a certain threshold. Ensure the fee is included with your submission to avoid processing delays.
Section A: Assets
Section A of the AG990-IL form focuses on detailing the charitable organization’s assets. This section requires a comprehensive breakdown of everything the organization owns, representing its financial resources. Accurate reporting is crucial for transparency and accountability.
You will need to list all assets, including cash, accounts receivable, investments, property, and any other holdings of value. Each asset category should be clearly identified and its corresponding value reported. Ensure consistency with your organization’s accounting records.
The form specifically requests information under A) Assets; This includes providing the legal name and mailing address of the organization alongside the asset details. Carefully review the instructions to ensure all required information is provided for each asset listed. Proper categorization and valuation are essential for accurate financial reporting.
A) Assets ⏤ Detailed Breakdown
Within Section A, the detailed breakdown of assets requires specific categorization. Line A necessitates listing all assets held by the charitable organization. This includes, but isn’t limited to, cash on hand, bank accounts, certificates of deposit, and any outstanding receivables.
Investments, such as stocks, bonds, and mutual funds, must be individually listed with their current market value. Real estate holdings, including land and buildings, should be reported at their assessed value. Any personal property owned by the organization, like equipment or vehicles, also needs inclusion.
Remember to accurately reflect the value of each asset as of the reporting date (December 31, 2023, for the 2024 filing). Maintaining detailed records supporting these valuations is highly recommended. Completing this section thoroughly ensures a clear picture of the organization’s financial standing.
Section B: Liabilities
Section B of the AG990-IL form focuses on detailing all liabilities owed by the charitable organization. This section is crucial for presenting a complete financial picture. Line B requires a comprehensive listing of all debts and obligations.
Common liabilities include accounts payable – amounts owed to vendors for goods or services. Accrued expenses, such as salaries or rent owed but not yet paid, must also be reported. Any outstanding loans, mortgages, or lines of credit need to be clearly stated, including the principal amount outstanding.
Deferred revenue, representing payments received for services not yet rendered, falls under liabilities. It’s vital to accurately categorize each liability and report the total amount owed as of the reporting date. Thorough documentation supporting these figures is essential for audit purposes and ensuring compliance;
B) Liabilities ⏤ Understanding the Categories
When completing Section B, understanding liability categories is paramount. Accounts Payable represents short-term debts to suppliers, typically settled within a year. Accrued Expenses cover obligations incurred but not yet invoiced, like wages or interest. Loans Payable include both short-term and long-term debt, detailing principal amounts and repayment terms.
Deferred Revenue signifies payments received for future services – a liability until the service is delivered. Mortgages Payable specifically relate to real estate debt. Unearned Revenue is similar to deferred revenue, representing advance payments.
Accurately classifying each debt ensures proper financial reporting. Distinguishing between current (due within a year) and non-current liabilities is vital. Proper categorization allows for a clear assessment of the organization’s short-term and long-term financial health, aiding in responsible financial management and transparency.
Section C: Net Assets
Section C of the AG990-IL focuses on Net Assets, representing the organization’s total assets minus total liabilities – essentially, its equity. This section is crucial for understanding the financial health and stability of the charitable organization. Net assets are typically categorized into three classes: unrestricted, temporarily restricted, and permanently restricted.
Unrestricted Net Assets are available for any purpose designated by the organization’s board. Temporarily Restricted Net Assets have donor-imposed stipulations that will be met by a specific date or event. Permanently Restricted Net Assets have donor-imposed restrictions that never expire, often involving endowments.
Accurate calculation and clear presentation of net assets demonstrate financial responsibility to donors, regulators, and the public. This section provides a snapshot of the organization’s financial position and its ability to fulfill its charitable mission effectively.
C) Net Assets ー Calculation and Importance
Calculating Net Assets on the AG990-IL involves subtracting total liabilities (Section B) from total assets (Section A). This fundamental equation – Assets ー Liabilities = Net Assets – reveals the organization’s financial standing. Understanding these figures is paramount for assessing long-term sustainability.
The importance of accurately reporting net assets extends beyond mere compliance. It demonstrates financial transparency to donors, stakeholders, and the Illinois Attorney General’s office. A positive net asset position indicates financial health, while a negative position may signal financial distress requiring attention.
Categorizing net assets (unrestricted, temporarily restricted, permanently restricted) provides further insight into how funds can be utilized. This detailed breakdown allows for informed decision-making regarding resource allocation and strategic planning, ensuring the organization’s continued ability to serve its charitable purpose.
Section D, E, F, G: Percentage and Amount Fields
Sections D, E, F, and G of the AG990-IL require reporting both percentage and amount values for various financial activities. These fields are crucial for providing a comprehensive overview of the organization’s financial operations to the Illinois Attorney General. Accuracy is paramount when completing these sections.
Typically, these sections involve reporting percentages related to program service expenses, fundraising costs, and administrative expenses. Alongside each percentage, the corresponding dollar amount must be accurately stated. Ensure these figures align with the totals calculated in other sections of the form.
Carefully review the instructions accompanying the form to understand precisely what expenses should be included in each category. Consistent and transparent reporting in these percentage and amount fields demonstrates responsible financial stewardship and builds trust with stakeholders.
Total Charitable Program Service Expense (Lines H, I, J, K)
Lines H, I, J, and K on the AG990-IL form are dedicated to calculating the total charitable program service expense. This is a critical figure demonstrating how much of the organization’s resources directly support its charitable mission. Line H and I likely represent specific program service expenditure components, requiring detailed accounting.
Line J typically involves adding the amounts from lines H and I to arrive at a subtotal for charitable program services. Subsequently, line K often includes additional program-related expenses, contributing to the final total. Accurate calculation and clear documentation of these expenses are essential.
Organizations must ensure all program-related costs are appropriately categorized and included in these lines. This total directly impacts the organization’s financial health assessment by the Illinois Charity Bureau, so meticulous attention to detail is vital for compliance.
Total Expenditures This Period (Lines L, M, N)
Lines L, M, and N of the AG990-IL form consolidate the organization’s total expenditures for the reporting period. Line L likely represents expenses related to management and general administration, encompassing costs like salaries, rent, and utilities for administrative staff.
Line M typically accounts for fundraising expenses, including costs associated with soliciting donations and organizing fundraising events. Finally, Line N often represents other expenses not categorized in lines L or M. Adding lines L, M, and N provides a comprehensive overview of the organization’s total operating expenses.
Accurate completion of these lines is crucial for demonstrating financial transparency and accountability to the Illinois Attorney General’s office. Proper categorization and documentation of all expenditures are essential for a compliant filing and a clear picture of the organization’s financial stewardship.
Professional Fundraisers and Consultants
The AG990-IL form requires detailed disclosure regarding the use of professional fundraisers and consultants. This section aims to ensure transparency in fundraising practices and identify any potential conflicts of interest. Organizations must report the gross amounts paid to these professionals during the reporting period.
Specifically, the form asks for information on both professional fundraising consultants and fundraisers. Consultants typically provide advice and strategy, while fundraisers actively solicit donations on behalf of the charity. Accurate reporting includes the name, address, and total compensation paid to each entity.
This information is vital for the Illinois Attorney General’s office to oversee charitable solicitations and protect donors. Failing to accurately disclose these relationships can result in penalties. Complete and truthful reporting demonstrates responsible financial management and adherence to Illinois regulations.
Legal Name and Address Information
The AG990-IL form begins with essential identification details. Accurate legal name and address information is crucial for official correspondence and maintaining proper records with the Illinois Attorney General’s office. This section requires the organization’s full legal name, as registered with the state.
Alongside the legal name, the form requests the organization’s primary mailing address. This includes the street address, city, state, and zip code. Ensure this address is current and where official notices should be sent. Any discrepancies can cause delays in processing or important information being missed.
Providing correct details in this section is fundamental. It establishes the organization’s identity and facilitates communication. Double-check all entries for accuracy before submitting the AG990-IL. This simple step prevents administrative issues and ensures a smooth filing process.
Annual Report Filing Fee
A key component of filing the AG990-IL is understanding the annual report filing fee. Soliciting organizations are required to remit a fee of $15 if their gross revenues exceed a certain threshold. This fee supports the Illinois Charity Bureau’s oversight and regulatory functions.
The requirement to pay this fee is directly linked to the organization’s financial activity. If gross revenues fall below the specified amount, the filing fee is waived. It’s crucial to accurately determine your organization’s gross revenues to ascertain fee obligation.
Payment instructions are typically outlined within the AG990-IL form itself or on the Illinois Attorney General’s website. Ensure the fee is submitted with the completed report by the filing deadline to avoid penalties. Proper payment demonstrates compliance and supports the charitable sector’s accountability.
Completing All Sections and Line Items
Successfully navigating the AG990-IL requires meticulous attention to detail. Complete all sections and line items applicable to your organization; omitting information can lead to delays or rejection of your filing. Each section – Assets, Liabilities, Net Assets, and Expenditure details – demands accurate data.
Refer to the form’s instructions for clarification on specific line items. Ensure consistency between reported figures and your organization’s financial records. Double-check calculations, particularly when totaling amounts across different sections. Accuracy is paramount for maintaining transparency and accountability.
Don’t hesitate to seek assistance if you encounter difficulties. The Illinois Attorney General’s office provides resources and guidance to help organizations comply with filing requirements. Thorough completion demonstrates a commitment to responsible financial stewardship and regulatory adherence.
Resources and Assistance
Navigating the AG990-IL filing process can sometimes be complex. Fortunately, several resources are available to assist Illinois charitable organizations. The Illinois Attorney General’s office is the primary source for guidance, offering detailed instructions and frequently asked questions on their website.
Organizations may also find support from professional accounting firms or consultants specializing in nonprofit compliance. These experts can provide tailored assistance with form completion and financial reporting. Additionally, various nonprofit associations within Illinois offer workshops and training sessions on annual reporting requirements.
Don’t hesitate to utilize these resources if you encounter challenges. Proactive engagement with available support ensures accurate and timely filing, fostering transparency and maintaining good standing with the Illinois Charity Bureau. Seeking help is a sign of responsible organizational management.
Recent Updates to Form AG990-IL (as of 01/22/2026)
As of January 22, 2026, the AG990-IL form remains based on the Revised 3/05 version, though clarifications regarding expenditure reporting have been issued. The Attorney General’s office emphasizes accurate categorization of charitable program service expenses, specifically lines H through K, requiring detailed breakdowns.
A key update concerns the Annual Report Filing Fee. Soliciting Organizations with gross revenues exceeding a certain threshold are still required to remit the $15 fee. The online filing system has been updated to reflect current revenue thresholds and payment options.
Furthermore, the instructions now explicitly state the necessity to complete all applicable sections and line items. Organizations should review the form thoroughly to ensure full compliance. The Charity Bureau encourages proactive review of these updates to avoid potential penalties or delays in processing.