IL HB5479

Secretary of State establishes a grading system for not-for-profit corporations on a scale of 0-100 points, divided into 4-point segments, based on fundraising costs, administrative expenses, and services to clientele.

Grading standards must disclose the corporation's cost to raise $100 in cash donations and grants, excluding investment income, sales proceeds, and program service revenue.

Corporations scoring below 26 points are ineligible for any state-funded grants for 4 years; corporations scoring 26-40 points are placed on 2-year probation and must reach 60 points to remain eligible.

Corporations scoring 90 or more points are eligible for additional state-funded grants: 50% to those scoring 96+, 30% to those scoring 91-95, and 20% to those scoring 86-90.

Secretary of State must post all grading results on its website and corporations must report information required by the Secretary for the grading process.