Michigan Nonprofit Compliance

Organizations exempt under both the Charitable Organizations and Solicitations Act (COSA) and the Supervision of Trustees for Charitable Purposes Act (STCPA):

• An organization that requests contributions only for the relief or benefit of a named individual or family with all fundraising conducted by persons who are unpaid for their service
• A Michigan educational institution approved by the Michigan Board of Education
• A veterans organization incorporated under federal law
• A licensed hospital (Health systems and other affiliates are not exempt even if they include a licensed hospital)
• A school booster organization operating with the knowledge and approval of an educational institution for the support or promotion of educational, artistic, musical, or athletic programs or events
• A governmental unit or instrumentality
• An advocacy or lobbying organization, or an organization associated with an advocacy organization, political party, candidate or committee, that does not have 501(c)(3) status (If the organization's IRS 501(c)(3) determination letter requires it to file a Form 990, 990-EZ, or 990-N, the organization likely does not qualify for this exemption)
• An organization that will not have 501(c)(3) status and whose principal purpose is not charitable but that solicits from time to time for a charitable purpose (To qualify for this exemption the organization must not have or intend to receive 501(c)(3) status, all fundraising must be performed by members of the organization who are not paid for their services, and all funds must be wholly used for the purposes for which they were solicited)

Organizations exempt under COSA:

• An organization that confines solicitations to drives solely among members, directors and their immediate families, where the general public is not invited to become a member. This includes a private foundation for IRS tax purposes that receives contributions solely from incorporators, directors, stockholders or their families, or from a sponsoring business
• An organization whose sole source of contributions is a charitable organization registered with this office to solicit contributions
• A hospital-based foundation or auxiliary that solicits contributions solely for 1 or more licensed hospitals
• An organization that does not intend to solicit and receive, and does not actually receive, contributions in excess of $25,000 (Excluding grants from government agencies or restricted grants from foundations) during any 12-month period (All fundraising functions must be conducted by persons, whether staff or contractors, who are not paid for their services and the organization must make a financial statement of its activities of its most recent fiscal year available to its members and the public)
• A nonprofit corporation whose purpose is the owning and operating of facilities for the aged and chronically ill that is under the sole control of a religious or fraternal society
• An organization at least 50% of whose activities are licensed by the Michigan Department of Health and Human Services to serve children and families

Organizations exempt under STCPA:

• An organization incorporated or organized in a state other than Michigan that will never hold assets in Michigan, including cash, savings accounts, investment accounts, land, building, equipment, etc.
• An organization that receives operating funds from United Way
• An amateur theater, band, orchestra, chorale or dance organization

Form CTS-03: Request for Exemption

Mail or email to ct_email@mi.gov.

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Exemptions do not expire as long as the organization continues to qualify under the exemption criteria.

Form CTS-01: Initial Solicitation Registration Form

Mail, email to ct_email@michigan.gov, or online.

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4-6 weeks

• One principal officer or director must sign. Signatures need not be notarized.
• Verify that the attorney general's office received the registration form by searching for the organization at www.michigan.gov/AGCharitySearch
• Following review if your initial registration or exemption, the Attorney General may instruct your organization to complete additional forms.
• Some Michigan counties and municipalities may require charities that solicit in-person to register prior to fundraising.

Domestic Applicants:

• Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement.
• Appoint a registered agent to receive legal documents in Michigan.
• If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application.
• Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application.

Foreign Applicants:

• Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement.
• Appoint a registered agent to receive legal documents in Michigan.
• If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application.
• Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application.
• If you will foreign qualify in Michigan, obtain a certificate of good standing from your home state to submit during the foreign qualification process. The certificate cannot be more than 30 days old when filing foreign qualification documents.

Domestic Applicants:

1. File entity formation documents with the Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Corporations Division.
2. Submit an Initial Solicitation Registration Form and all required attachments to the Michigan Attorney General - Charitable Trust Section.

Foreign Applicants:

1. Determine whether or not your charity will need to foreign qualify based on your activity in Michigan. If not required, skip to number 3.
2. File foreign qualification documents with the Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Corporations Division.
3. Submit an Initial Solicitation Registration Form and all required attachments to the Michigan Attorney General - Charitable Trust Section.

• IRS form 990
• Audited financials (if applicable)
• Articles of incorporation
• Bylaws
• IRS determination letter
• List of officers and directors
• Professional fundraising contracts

Form CTS-02: Renewal Solicitation Registration Form

Mail, email to ct_email@michigan.gov, or online.

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• Annually within 7 months after the close of your nonprofit's fiscal year. So if your fiscal calendar ends December 31, then the renewal is due by July 31.
• There is no official start to the renewal period, so renewals may be submitted as soon as financials become available for the most recently completed fiscal year.

Due dates can be extended for 5 months beyond the original due date by emailing ct_email@michigan.gov with an explanation of your request for extension. A copy of IRS form 8868 must be included when requesting an extension.

• IRS form 990
• Audited accrual basis financials (if applicable)
• List of officers and directors
• Professional fundraising contracts
• Only if amended: IRS determination letter, articles of incorporation, and bylaws

Form CTS-02: Renewal Solicitation Registration Form

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Fiscal year can be changed during the standard renewal process.

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To close out your registration, submit a letter indicating the organization will no longer accept contributions from Michigan sources (including via internet). The process may be different for organizations that hold assets in Michigan.