Three separate government steps
| Step | Agency | What it does |
|---|---|---|
| Nonprofit incorporation | Illinois Secretary of State | Creates the Illinois not-for-profit corporation. |
| Charitable registration | Illinois Attorney General | Addresses solicitation and the holding of charitable assets under Illinois charity law. |
| Federal tax exemption | Internal Revenue Service | Provides federal recognition under the applicable Internal Revenue Code section when approved. |
Completing one does not automatically complete the others. State sales-tax exemption is also separate.
When should a new charity register?
The Illinois Attorney General directs organizations to register as required before any solicitation or holding of charitable assets. Its nonprofit checklist also says charities holding or soliciting funds in Illinois must register before soliciting funds.
Do not wait for a federal determination letter merely because the organization plans to seek 501(c)(3) recognition. The Attorney General specifically says a new organization may register before applying for IRS tax-exempt status.
What the initial registration generally includes
- Check whether an exemption applies. Illinois law contains exemptions for certain categories. Do not assume “small” or “new” automatically means exempt.
- Prepare Form CO-1. This is the Illinois charitable-organization registration statement.
- Add the required financial filing. The Attorney General's checklist directs an organization less than one year old to include Form CO-2; an older organization generally supplies the applicable AG990-IL filings for each year of existence.
- Gather attachments. Follow the current CO-1 instructions for organizing documents, bylaws, IRS materials, contracts, and other documents that apply to the organization.
- Pay the registration fee. The Attorney General currently lists a $15 initial fee.
- Use the current filing method. Illinois offers an online Charitable Trust filing system and also publishes downloadable forms and instructions.
What happens after registration?
Registration creates an ongoing reporting obligation. The Illinois Attorney General's checklist says registered charities generally file an AG990-IL annual report within six months after the end of the fiscal or calendar year, with the required attachments and fee. Financial thresholds affect which details and financial statements are required, and the Attorney General announced revised audit and review thresholds effective January 1, 2024.
Track Attorney General reporting separately from the Illinois Secretary of State annual report and the federal Form 990-series filing. They have different agencies, forms, deadlines, and consequences.
Before the first fundraising appeal
- Confirm the legal entity name and preserve the accepted Articles.
- Adopt bylaws, elect officers, and document the organizational meeting.
- Obtain the EIN and establish board-approved financial controls.
- Determine whether Illinois registration or an exemption applies.
- Complete the current registration forms and attachments before solicitation.
- Check other states if online or direct appeals will target residents outside Illinois.
- Check local rules and separate raffle or gaming requirements for special fundraisers.
- Calendar Attorney General, Secretary of State, and IRS annual filings separately.
Frequently asked questions
Does an Illinois nonprofit need to register before asking for donations?
Generally, yes. The Illinois Attorney General says a charitable organization must register as required before soliciting funds or holding charitable assets in Illinois, unless an exemption applies.
Can we register before receiving 501(c)(3) approval?
Yes. The Illinois Attorney General's checklist says an organization may register before applying for IRS tax-exempt status and explains how to answer the registration form if it has not yet applied.
What does Illinois charitable registration cost?
The Illinois Attorney General currently lists a $15 initial registration fee. Other fees, including a late-registration fee, can apply when deadlines are missed.
Does incorporation complete charitable registration?
No. Incorporation with the Illinois Secretary of State and charitable registration with the Illinois Attorney General are separate processes. Federal tax-exempt recognition is another separate process.
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