HB-6633, As Passed Senate, December 19, 2008

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 6633

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1975 PA 169, entitled

 

"Charitable organizations and solicitations act,"

 

by amending section 3 (MCL 400.273).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) Before a solicitation, a Unless the charitable

 

organization which is not an exempt organization and which is not

 

described in that is exempt from licensing and reporting under

 

section 13, which a charitable organization that solicits or

 

intends to solicit or receives or intends to receive contributions

 

from persons by any means whatsoever, shall file an application for

 

a license under this act with the attorney general, upon on forms

 

prescribed by him , an application for a license or her. It

 

     (2) An application for a license under this act shall include

 

the following information:

 


     (a) The name of the organization and the any name under which

 

it intends 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 having 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 it 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. When the If

 

a contract described in this subdivision is executed after filing

 

of the application, statement, the organization shall file a copy

 

shall be filed 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.