SENATE BILL NO. 808
April 09, 2024, Introduced by Senators SHINK, CHANG, BAYER and WOJNO and referred to
the Committee on Regulatory Affairs.
A bill to amend 1975 PA 169, entitled
"Charitable organizations and solicitations act,"
by amending section 3 (MCL 400.273), as amended by 2010 PA 377.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 3. (1) Before a solicitation, unless the charitable
2 organization is exempt from registration and reporting under
3 section 13, a charitable organization that solicits or intends to
4 solicit or receives or intends to receive contributions from
5 persons by any means shall register with the attorney general as
6 provided in this act.
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1 (2) A charitable organization described in subsection (1)
2 shall register under this act by submitting a registration
3 statement in the form prescribed by the attorney general. To
4 register, a charitable organization must include all of the
5 following information about the charitable organization in the
6 registration form:
7 (a) The name of the organization and any name it uses or
8 intends to use to solicit contributions.
9 (b) The principal address of the organization and the address
10 of each office in this state. If the organization does not maintain
11 a principal office, the organization shall include the name and
12 address of the person that has custody of its financial records in
13 the registration statement.
14 (c) The names and addresses of the officers, directors,
15 trustees, chief executive officer, and state agent of the
16 organization.
17 (d) Where and when the organization was legally established,
18 the form of its organization, and its tax exempt status.
19 (e) The purpose for which the organization is organized and
20 the purposes for which contributions to be solicited will be used.
21 (f) The fiscal year of the organization.
22 (g) Whether the organization is or has ever been enjoined from
23 soliciting contributions.
24 (h) All methods by which solicitations will be made.
25 (i) Copies of contracts between the organization and any
26 professional fund raisers relating to financial compensation or
27 profit to be derived by the professional fund raisers. If a
28 contract described in this subdivision is executed after filing of
29 the registration statement, the organization shall file a copy of
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1 the contract with the attorney general within not later than 10
2 days after the date of execution.
3 (j) If the charitable organization received contributions in
4 its immediately preceding tax year, as reported on the charitable
5 organization's internal revenue service Internal Revenue Service
6 form 990, 990-EZ, 990-PF, or other 990-series return, in the amount
7 of $500,000.00 $1,000,000.00 or more, financial statements prepared
8 according to generally accepted accounting principles and audited
9 by an independent certified public accountant. If the charitable
10 organization received contributions in its immediately preceding
11 tax year, as reported on the charitable organization's internal
12 revenue service Internal Revenue Service form 990, 990-EZ, 990-PF,
13 or other 990-series return, in the amount of $250,000.00
14 $275,000.00 or more, but less than $500,000.00, $1,000,000.00, the
15 charitable organization shall include financial statements that are
16 either reviewed or audited by an independent certified public
17 accountant. The attorney general may waive this requirement 1 time
18 for a charitable organization.
19 (k) The charitable organization's internal revenue service
20 Internal Revenue Service form 990, 990-EZ, 990-PF, or other 990-
21 series return for the preceding tax year.
22 (l) Any other information the attorney general requires by
23 rule.
24 (3) Both All of the following apply for purposes of subsection
25 (2)(j):
26 (a) For registration statements submitted under this section
27 on or after January 1, 2015 and before January 1, 2020, the dollar
28 amounts of contributions in subsection (2)(j) at which reviewed
29 financial statements and at which audited financial statements are
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1 required with the registration statement are increased by
2 $25,000.00. Those dollar amounts are increased by an additional
3 $25,000.00 for every subsequent 5-year period, beginning on January
4 1, 2020.Each December 31 after the effective date of the amendatory
5 act that added subdivision (b), the contribution thresholds must be
6 adjusted by the cumulative annual percentage change in the Consumer
7 Price Index.
8 (b) "Consumer Price Index" means the most comprehensive index
9 of consumer prices available for this state from the Bureau of
10 Labor Statistics of the United States Department of Labor.
11 (c) (b) "Contributions" means all contributions and support
12 reported on a charitable organization's Internal Revenue Service
13 form 990, 990-EZ, 990-PF, or other 990-series return. The term
14 includes Contributions include special fund-raising event receipts
15 , and net of direct expenses. , but does Contributions do not
16 include contributions or grants received from governmental
17 agencies.
18 (4) The attorney general may suspend a charitable
19 organization's obligation to provide any of the following with its
20 registration statement submitted under subsection (2) for a
21 reasonable, specifically designated time if the attorney general
22 receives a written request to suspend that obligation and the
23 attorney general determines, and notifies the charitable
24 organization in writing, that the interest of the public will not
25 be prejudiced by suspending that obligation:
26 (a) Financial statements under subsection (2)(j).
27 (b) A tax return under subsection (2)(k).
28 (c) Any other information the organization is obligated to
29 provide pursuant to any by a rule promulgated under subsection
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1 (2)(l).
KNC Final Page S05456'24


Statutes affected:
Senate Introduced Bill: 400.273