Michigan Nonprofits State Tax Overview- Updated May 01, 2020 - 8.00 AM - Admin, ExpressTaxExempt
Read through this page to explore everything related to the State of Michigan's registration and reinstatement process of charity organizations.
To offer a comprehensive understanding, we have listed the filing methods the Michigan state accepts, details of the form to file, how an organization can extend its filing deadline, the penalty imposed, and other links to important resources. or groups in forming private or public foundations or charitable organizations.
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Table of Contents
1. Registrations and Renewal of Charity Organizations for Michigan
Michigan corporations that are formed for charitable purposes may need to be licensed to solicit donations and/or if holding charitable assets to be registered as a charitable trust with the Michigan Attorney General, Charitable Trust Section. Also, the professional fundraisers need to have a license.
There are some exemptions from solicitations act for registration. For exemption details, see MCL 400.283. One such example of exemption is that the organization that raises funds exclusively uses volunteers and receives less than $25,000 per year. Such organization is exempted by Solicitation act.
Other exemptions include certain educational institutions, certain hospitals, and unpaid solicitations for the benefit of individuals. If you believe your organization is exempt, you must confirm this with the Charitable Trust Section by submitting the CTS - 03 Request for Exemption.
CTS - 01 Initial Solicitation
If registering for the first time, submit the CTS - 01 Initial Solicitation Form and all requested attachments:
- Out-of-state corporations must submit copies of their articles of incorporation and all amendments and bylaws; copies must show that they were filed with the appropriate state agency. Michigan corporations must submit bylaws, if any;
- Unincorporated entities should submit constitutions, bylaws, or other organizing documents;
- Organizations with tax exempt status from the Internal Revenue Service (IRS) should provide a copy of the IRS determination letter;
(To know more on obtaining tax exempt status, see the IRS website.)
- Organizations that have had any financial activity should provide a recent financial accounting.
- Alternatively, organizations that solicit in more than one state may file the Unified Registration Statement (URS) that is accepted by many states. When filing the URS, ensure appropriate responses to state-specific requirements, such as Michigan's resident agent requirement.
CTS - 02 Renewal Solicitation
- The charitable solicitation registration must be renewed annually. Each registration includes its expiration date, which is seven (7) months after the end of the organization's fiscal year. To renew, the organization should submit a CTS - 02 Renewal Solicitation Form at least thirty (30) days prior to the expiration date, along with required attachments.
Forms for Charities
Extension of time to file the Renewal Solicitation Form
Your solicitation registration will expire 7 months after the close of your fiscal year (financial accounting period). Your renewal form is due 30 days before the expiration of your registration. If you need an extension of time to file the Renewal Solicitation Form, it must be requested in writing before your registration expires. Your registration expiration date will be extended for 5 additional months.
Request for Exemption
Organizations that are exempt from solicitation registration under COSA; and/or Organizations that are exempt from registration under the STCPA to file Form - CTS-03.
Exempt Notification - You will be notified in writing if your request for exemption has been approved or not.
How to submit your Solicitation forms?
Filing the initial form – You may submit your registration by email, efiling, fax, or by mail. For faster processing, use email or efiling.
Fees – There is currently no fee to register to solicit in Michigan.
Email - The Form and all required documents should be attached in PDF form. Send it to: firstname.lastname@example.org. Put the legal name and AG file number, if known, in the subject line.
Efile - To file online click the Efiling
Mail - Send the solicitation form to:Department of Attorney General
Charitable Trust Section
PO Box 30214
Lansing, MI 48909
Telephone: (517) 335-7571
Fax: (517) 241-7074
To check the status of your organization after filing, Search for the organization at www.mi.gov/CharitySearch. The search results will state, “Application/registration pending.”
2. Annual Reports and Filings for Nonprofits in Michigan
Annual Report Instructions
- There could be requirements for additional documents from your state after the articles of incorporation are filed. This is per Michigan Nonprofit Corporation Act, 1982 PA 162, to implement the corporation's intended changes.
- Any substantive questions regarding legal rights and responsibilities in connection with the corporation should be discussed with your private legal counsel. When Articles of Incorporation are filed, the Bureau assigns the corporation a nine-digit ID number and this number is included on the endorsement page. Please use this ID number on any correspondence or documents submitted to this office.
Following are the essential annual report requirements:
Filing Fee: $20
Due Date: On or before October 1 of each year beginning the year after incorporation.
Filing Method: Enclose check or money order payable to the “State of Michigan” when submitting a report by mail or pay with credit card when filing online.
To file online, you will need to visit the LARA Corporations Online Filing System. To file by mail or in-person, please return the pre-filled annual report form that the Michigan Corporations Division will send to your registered agent 90 days prior to your due date. Contact the Bureau at CorpsMail@michigan.gov if an additional pre-printed annual report is needed.
Annual Report - Mailing Address
A preprinted annual report, CSCL/CD-2000 is mailed to the corporation’s resident agent at the registered office approximately three months prior to the due date. If the Corporation has opted to receive electronic notices, the email notice is sent to the resident agent email address on record.
Penalty for submitting the Annual Report late
Failing to submit the annual report by the Michigan Corporation or pay the related fee within 2 years of the due date of the report, the corporation is automatically dissolved by operation of law. To renew the corporation's existence, the corporation must complete and submit reports for the last 5 years. The report can be submitted for a lesser number of years in which reports were not filed and an annual fee for all the years which were not paid must be paid, in addition to the $5.00 for each delinquent report.