Illinois Governor Patrick Quinn signed into law Senate Bill 1390, now known as Public Act 96-0649 on August 24 and taking effect on January 1, 2010.  The bill updates the Illinois General Not-for-Profit Corporation Act of 1986, which governs how associations operate in Illinois and is therefore critical to the long-term health of the association community.

Among the most important updates included in SB 1390 are provisions that will make it easier for associations to electronically hold elections; enhance board governance and operations; modify and clarify “books and records” requirements; simplify the demonstration of unanimous written consent; address conflicts of interest, based on recommendations from the American Bar Association; and pay directors, thanks to a revised cap on the amount nonprofits can compensate them without losing their limited liability protection.

“The Illinois General Not-for-Profit Corporation Act is paramount to the fair and effective establishment, governance and management of associations in the State of Illinois,” said Association Forum of Chicagoland President and CEO Christie A. Tarantino. “By updating this critical piece of legislation with provisions designed to make nonprofit governance easier and more equitable, Senate Bill 1390 ensures the future advancement, enhancement and enrichment of associations in Chicago and throughout Illinois. The Association Forum of Chicagoland applauds Governor Quinn for signing it and thanks its sponsors in the Illinois Legislature for making its passage possible.”