Section 400.273 - Charitable organization; application for license; information to be included; conditions requiring financial statements; requirements; "contributions" defined.
CHARITABLE ORGANIZATIONS AND SOLICITATIONS ACT (EXCERPT)
Act 169 of 1975
400.273 Charitable organization; application for license; information to be included; conditions requiring financial statements; requirements; "contributions" defined.
Sec. 3.
(1) Unless the charitable organization is an exempt organization that is exempt from licensing and reporting under section 13, a charitable organization that solicits or intends to solicit or receives or intends to receive contributions from persons by any means shall file an application for a license under this act with the attorney general, on forms prescribed by him or her.
(2) An application for a license under this act shall include the following information:
(a) The name of the organization and any name it uses or intends to use to solicit contributions.
(b) The principal address of the organization and the address of any office in this state. If the organization does not maintain a principal office, the organization shall include the name and address of the person that has custody of its financial records.
(c) The names and addresses of the officers, directors, trustees, chief executive officer, and state agent of the organization.
(d) Where and when the organization was legally established, the form of its organization, and its tax exempt status.
(e) The purpose for which the organization is organized and the purposes for which contributions to be solicited will be used.
(f) The fiscal year date of the organization.
(g) Whether the organization is or has ever been enjoined from soliciting contributions.
(h) All methods by which solicitations will be made.
(i) Copies of contracts between charitable organizations and professional fund raisers relating to financial compensation or profit to be derived by the professional fund raisers. If a contract described in this subdivision is executed after filing of the application, the organization shall file a copy of the contract with the attorney general within 10 days of the date of execution.
(j) Other information as required by rule.
(3) If a charitable organization received contributions in its immediately preceding tax year, as reported on the charitable organization's internal revenue service form 990, 990-EZ, 990-PF, or other 990-series return, in the amount of $500,000.00 or more, the charitable organization shall include financial statements with its application for license under this section, prepared according to generally accepted accounting principles and audited by an independent certified public accountant. If a charitable organization received contributions in its immediately preceding tax year, as reported on the charitable organization's internal revenue service form 990, 990-EZ, 990-PF, or other 990-series return, in the amount of $250,000.00 or more, but less than $500,000.00, the charitable organization shall include financial statements with its application for license under this section that are either reviewed or audited by an independent certified public accountant. The attorney general may waive this requirement 1 time for a charitable organization.
(4) Both of the following apply for purposes of subsection (3):
(a) For license applications submitted under this section on or after January 1, 2015 and before January 1, 2020, the dollar amounts of contributions in subsection (3) at which reviewed financial statements and at which audited financial statements are required with the application are increased by $25,000.00. Those dollar amounts are increased by an additional $25,000.00 for every subsequent 5-year period, beginning on January 1, 2020.
(b) "Contributions" means all contributions and support reported on a charitable organization's form 990, 990-EZ, 990-PF, or other 990-series return. The term includes special fund-raising event receipts, net of direct expenses, but does not include contributions or grants received from governmental agencies.
History: 1975, Act 169, Imd. Eff. July 20, 1975 ;-- Am. 2008, Act 424, Imd. Eff. Jan. 6, 2009