Registering your NP in Michigan
Charitable Organization Requirements
The Charitable Organizations and Solicitations Act, 1975 PA 169, as amended, MCL 400.271 et seq., MSA 3.240(1) et seq. requires an organization to obtain a charitable solicitation license if it solicits or receives contributions in Michigan in excess of $8,000 or if it compensates any person for fund raising services, including employees or independent contractors. Under section 13 of the Act, some organizations are exempt from licensing requirements. The determination of whether any one of those exemptions applies is to be made by the Charitable Trust Section, not presumed by the organization. The same statute also requires professional fund raisers to be licensed and bonded before soliciting on behalf of a charitable organization or a religious organization.
To obtain a determination whether a license or registration is required, charitable organizations must file an Initial Charitable Trust/Charitable Solicitation Questionnaire either online or by mail, along with all requested attachments. The attachments must include copies of creating documents. Incorporated entities are required to submit copies of their articles of incorporation, including all amendments and certificates of assumed or fictitious names. Submitted copies must show evidence that the documents were properly filed with the appropriate state agency. In Michigan, that agency is the Department of Labor and Economic Growth, Corporation Division. A constitution and/or bylaws must be submitted by unincorporated entities and by corporations if those documents exist. If the organization has received tax exempt status from the IRS, a copy of that determination letter should be included. (More information about obtaining tax exempt status from the IRS is available at their website.) A recent financial accounting should be sent along with the Questionnaire for those organizations that have had financial activity. If it is determined that a charitable solicitation license is required, then the organization will need to submit a properly completed Application for License to Solicit Donations. Alternatively, organizations that solicit in more than one state may file the Unified Registration Statement that is accepted by many states.
The charitable solicitation license expires each year either six (6) or seven (7) months following the end of the organization's fiscal year. The expiration date is stated on the license sent to each organization at the time it is issued. To renew the license, the organization should submit an Application at least thirty (30) days prior to the expiration date, along with all necessary attachments.