DIY - Guide for Obtaining State Income/Franchise Tax Exemption

Income tax is a tax on an organization's income. Franchise tax is a fee for the privilege of doing business in a particular state. States generally require one or the other, but not both. Most states allow 501(c)(3) organizations to obtain an exemption from paying these taxes.

RENOSI completes* these filings for its clients. However, we understand that some people like to do things themselves, so we have created this DIY guide. If you would like our assistance with this or anything else, we are here to help.

*Additional filing fees charged by your state are not included in the cost of your plan and must be invoiced separately.

RENOSI is the leader in helping national organizations set up and manage affiliate chapters. Setting up local, regional and state affiliate chapters is an excellent way to grow your national organization. Managing hundreds and even thousands of chapters, however, is time-consuming and difficult.

Since its inception, RENOSI has provided a simple and stress-free solution to help obtain and maintain tax-exempt status for over 6,000 nonprofits. With the interactive myRENOSI dashboard, our partners can organize their state and federal registrations, allowing our team of experts to help ensure your tax-exempt status is not revoked.

FEATURED BLOG

Avoid a $200 Fine: File Your Illinois Charity Registration Immediatley

Jack Englund

Apr 16, 2025

Starting a nonprofit in Illinois? Then you’ll want to check this off your list ASAP, and this is the Illinois Charity Registration. It's one of the very first compliance steps you need to take if you're planning to raise money from the public.

Skip the charity registration, and you’re looking at a potential $200 fine. But don’t worry, we're here to help you avoid that.

What Is the Illinois Charity Registration?

If your organization is based in Illinois and intends to solicit donations (that includes bake sales, online campaigns, or any kind of fundraising), state law requires you to register with the Illinois Attorney General’s office. This is a common requirement as 38 states have similar laws to make sure charitable giving is transparent and accountable.

In Illinois, charity registration is required before you start raising funds. So, if you've incorporated your nonprofit, the next step is to file your charity registration right away.

Forms Forms Forms

Like most government filings, the Illinois charity registration is a form – with a few extras. You'll need to include basic financial info and attach supporting documents including your approved articles of incorporation and bylaws. You will also need the organization's name, address, and names of officers.

If you file right after incorporating, the financial section (which asks for your gross income to date) should be a breeze. But if you’ve already started fundraising, you’ll have to report that…and you could be hit with a $200 fine.

What Happens If You Don't?

It’s the law. Set out in the Illinois Charitable Trust Act - 225 ILCS §460/2

"Every charitable organization, except as otherwise provided in Section 3 of this Act [225 ILCS 460/3], which solicits or intends to solicit contributions from persons in this State or which is located in this State, by any means whatsoever shall, prior to any solicitation, file with the Attorney General upon forms prescribed by him, a registration statement, accompanied by a registration fee of $15, which statement shall include the following certified information..."

The act goes on to clarify the penalty for not registering:

"In all instances where re-registration and late registration are allowed, the new registration materials must be filed, accompanied by a penalty registration fee of $200."

What You’ll Need to File

The charity registration packet isn’t too complicated, but it does require a bit of prep. You'll need to submit:

IL Form CO-1 – Registration Information Statement.
This includes general information about your organization, like your name, address, officers, and key details from your articles of incorporation.
IL Form CO-2 – Financial Information Form.
This asks for your organization’s gross income. If you're filing right after incorporating and haven’t raised any money yet, it should be straightforward. But if you've already started fundraising—even just one event—you'll need to report those figures, and a fine might apply.
Supporting Documents.

· A copy of your approved articles of incorporation

· A copy of your bylaws

A check for $15 made out to the Illinois Charity Bureau Fund.

Once everything is compiled, you'll mail your charity registration packet to the Attorney General's office. And then… you wait. Processing can take some time, but as long as your submission is complete and accurate, you’re free to move forward with fundraising.

Pro Tip: File Before You Fundraise

We can’t say it enough – file your charity registration before you solicit any donations. It's a quick win for compliance and will save you from stress, delays, and unnecessary fines down the road.

Greek Boss is on the road!

Jack here! I’m hitting the road to introduce RENOSI and Greek Boss . So far, I’ve been to 10 states. More travel is coming! I can’t wait to share Greek Boss with more student leaders and Greek Life Advisors!

In late September, the Texas tour takes off! I’ll be visiting Alabama, Louisiana, and traversing the great state of Texas.

Let me know if you’d like me to stop by your school. I can even do a workshop for your students!