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What are the legal requirements for setting up a non-profit organization in Illinois?

Picture of Chris Battis By   ·  1 minute read

To set up a non-profit organization in Illinois, the following legal requirements must be met:

  1. Choose a name for the non-profit organization: The name must not already be in use in Illinois and must not be deceptive or confusingly similar to that of another business or non-profit organization. The name must also include one of the following words or abbreviations: "corporation," "incorporated," "company," or "limited."
  2. Draft and file Articles of Incorporation with the Illinois Secretary of State: The Articles of Incorporation must include the name and purpose of the non-profit organization, the name and address of the registered agent, the initial board of directors, and any restrictions on the organization's activities. The Articles of Incorporation can be filed online or by mail, and there is a filing fee.
  3. Obtain an Employer Identification Number (EIN) from the IRS: An EIN is necessary for tax purposes and can be obtained from the IRS website.
  4. Apply for tax-exempt status with the IRS: To qualify for tax-exempt status, the non-profit organization must be organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes. The organization must also complete and file Form 1023 or Form 1023-EZ with the IRS and pay a fee.
  5. Register with the Illinois Attorney General's Office: Non-profit organizations must register with the Illinois Attorney General's Office within 15 days of their formation or within 30 days of receiving assets to be used for non-profit purposes. The registration requires filing a copy of the Articles of Incorporation, Bylaws, IRS Form 990, and a fee.

Possible limitations or exceptions to this advice may include specific requirements for non-profit organizations engaged in political or lobbying activities, or those that have employees or contracts with the government. It is advisable to consult with a licensed attorney to ensure that all legal requirements are met.

Overall, it is important to carefully follow all legal requirements to properly set up a non-profit organization in Illinois. Failure to comply with any of these requirements may result in legal consequences or loss of tax-exempt status.