Illinois Charity Registration and Nonprofit Fundraising

Illinois treats charitable fundraising and stewardship of charitable assets as regulated activity under the Charitable Trust Act and the Solicitation for Charity Act. Appeals that reach Illinois residents through mail, digital campaigns, events, or online giving remain tied to registration, annual reports, and public records maintained by the Attorney General’s Charitable Trust Bureau.

Donors, journalists, and regulators use those public files to review financial patterns, use of professional fundraisers, and governance details. Boards that build Illinois compliance into fundraising plans protect mission goals and keep leadership ahead of questions that often surface later.

Donor Solicitation in Illinois

Registration expectations for Illinois fundraising

Most charitable organizations that hold charitable assets in Illinois or solicit contributions from Illinois residents complete registration with the Charitable Trust Bureau before fundraising or soon after formation. That process typically includes a Charitable Organization Registration Statement, a recent AG990-IL financial report, and IRS filings, followed by annual AG990-IL reports and renewal fees.

Religious, educational, and governmental entities sit within several exemption categories, along with some smaller organizations whose contribution levels remain modest and who do not rely on paid fundraisers. Even where an exemption applies, the Attorney General often expects a short filing or supporting documents so the Bureau holds current records for that entity.

Illinois places professional fund raisers and professional solicitors under a separate registration system. Any outside firm that manages campaigns or directly asks the public for contributions registers with the Attorney General, posts a bond, and files annual reports for each campaign. Engagement letters and contracts benefit from language that addresses who holds responsibility for these filings and how campaign reporting flows back to the charity.

Online giving and communication with Illinois supporters

Donation buttons, recurring gift options, crowdfunding pages, and email lists reach Illinois residents in large numbers. State officials focus on residence of donors and location of assets, not only on corporate headquarters. A general “donate now” page often falls under Illinois oversight once supporters with Illinois addresses appear regularly in contribution reports or once campaigns target the state through regional media or geographic filters.

Many churches and nonprofits route online gifts through third party processors. Regulators still view the underlying appeal as activity by the charity. Agreements with platforms, acknowledgment letters, and privacy practices work best when wording lines up with the organization’s registration or exemption posture in Illinois and with public information on file in the AG990-IL record.

Events and campaigns in Illinois

Banquets, conferences, concerts, charity runs, and similar gatherings held in Illinois bring solicitation rules into play alongside local permit and venue requirements. Ticket or table sales, sponsorship packages, auctions, and live appeals during program segments all count as contributions under the Solicitation for Charity Act when proceeds support a charitable purpose.

Ministries and nonprofits often partner with Illinois churches, schools, or community groups. Questions then arise regarding which tax identification number appears on receipts, who signs sponsorship agreements, which entity holds custody of funds, and who stands on record with the Attorney General. Early coordination among partners reduces confusion when donors or regulators review Illinois filings later.

Tax Issues for Illinois Nonprofits

Income tax

For many Illinois nonprofits, state income tax treatment follows federal recognition. Corporations that qualify under section 501(c)(3) and related sections of the Internal Revenue Code receive exemption from Illinois income tax on income that supports exempt purposes.

Retail ventures, recurring rental activity, and joint projects with for profit partners introduce unrelated business income questions at the federal level and planning questions under Illinois law. Leadership teams often request review of Illinois operations that involve conference centers, thrift stores, or fee-based services so corporate structure, contracts, and reporting align with long term goals.

Sales and use tax

Illinois does not grant an automatic sales tax exemption for every nonprofit. Qualifying charitable, religious, educational, and governmental organizations seek a sales tax exemption identification number, often called an “E-number,” by filing Form STAX-1 or an online request with the Department of Revenue. Once approved, the E-number supports tax-free purchases for organizational purposes when presented to vendors. Exemption letters and E-numbers require renewal, and an expired number does not support tax-free purchasing.

Sales by a church or charity receive separate treatment. Illinois generally expects retailers to collect and remit tax on sales of tangible goods unless a specific statutory exemption applies. Frequent book sales, thrift operations, gift shops, and online merchandise with shipping to Illinois addresses sit inside that framework. Finance teams that oversee Illinois revenue often want a clear list of activities that fall under exemption and activities that require collection and reporting.

Property tax

Illinois property tax law offers relief for charitable, religious, educational, and hospital property, yet those exemptions follow strict standards. Property owned by an institution of public charity, a religious organization, a school, or a qualifying hospital receives exemption only where use remains exclusive to exempt purposes and not held or leased with a view to profit.

County assessors and the Department of Revenue apply those standards through detailed applications and, in some cases, contested hearings. Mixed use campuses, joint ventures on medical or educational sites, and long term leases draw close scrutiny. A separate statutory framework for nonprofit hospitals under section 15-86 links property tax exemption for hospital campuses with levels of charity care and community benefit, so health systems with Illinois facilities often place property planning high on the board agenda.

Entity Types With Special Questions in Illinois

Churches

Churches in Illinois often fall within exemptions from aspects of the charitable registration scheme, while related corporations for schools, counseling centers, media work, or community programs follow the general charitable registration and AG990-IL path. Leadership teams benefit from a chart that shows which entities sit on the Attorney General’s registry and which entities rest on religious exemptions or separate rules.

Property used for worship, religious education, and related activities fits within the religious property exemption where use remains exclusive. At the same time, frequent rentals, retail operations on church campuses, and property held primarily for investment often raise property tax and sales tax questions. Boards that forecast building projects or multi-site expansion in Illinois often fold these questions into early planning.

Religious nonprofits

Faith based charities, mission agencies, campus ministries, and relief organizations with Illinois supporters share elements of church life yet move through the general charitable framework. Some hold registration exemptions because of structure or limited activity. Many register, file AG990-IL reports, and coordinate professional fundraiser filings because of public campaigns, grant funding, or a national footprint.

Religious identity also shapes tax questions. Some activities fit within charitable or religious property exemptions, while other activities resemble business operations. Leaders often seek written guidance that aligns fundraising, real estate use, and sales tax practices with both religious commitments and Illinois law.

Hospitals and health organizations

Nonprofit hospitals, health systems, and related foundations with Illinois operations work in a detailed property tax environment. The hospital-specific statute for property tax exemption and the long history of case law around charity care and community benefit create a distinct planning space for health care entities.

Gift shops, parking facilities, food service, and leased medical office buildings raise separate sales tax and property tax questions from inpatient and outpatient care floors. Fundraising foundations that solicit Illinois residents often maintain their own registrations and AG990-IL filings, alongside vendor contracts for professional fundraisers or grateful patient programs.

Educational institutions

Schools, colleges, universities, and supporting foundations with Illinois campuses often rely on property tax exemptions for classrooms, libraries, and core educational facilities. Residence halls, athletic venues, and commercial leases on campus receive closer review.

Annual funds, capital campaigns, and booster club appeals aimed at Illinois families and alumni connect those institutions with charitable registration rules, professional fundraiser oversight, and sales tax rules for event revenue and merchandise. Advancement staff, business offices, and foundation boards benefit from a shared Illinois playbook so fundraising plans and compliance steps move together.

Next Steps

Illinois brings together charity registration, AG990-IL reporting, sales tax exemption procedures, and strict property tax standards in a way that shapes decisions about donors, property, and structure. Leadership that schedules a focused Illinois review often gains clearer options for future campaigns and projects.

For guidance tailored to your organization’s Illinois footprint, use the consultation form below to share a brief summary of your donors, events, and entities connected with this state. A member of the team will follow up to schedule a private consultation with your leadership.