At a Glance

Most nonprofits that solicit donations in Michigan must register with the Attorney General’s Charitable Trust Section, unless they raise less than $25,000 annually and use only unpaid volunteers. The registration requires submitting organizational documents and financial statements, costs nothing to file, and must be renewed annually.

Starting the charitable solicitation registration process in Michigan can feel overwhelming at first. However, breaking it down into manageable steps makes achieving compliance straightforward. Understanding the specific requirements for charitable solicitation in Michigan is crucial for your nonprofit to operate legally while building trust with supporters and preventing potentially costly penalties that could derail your important work.

You’ve put your heart and soul into your nonprofit mission—ensuring you’re legally compliant protects both your organization and the donors who support your cause. With the right guidance on charitable registration, you can navigate Michigan’s requirements confidently and get back to what matters most: making a difference in your community.

This comprehensive guide breaks down exactly what you need to know about registering for charitable solicitation in Michigan, from understanding the law to completing your application and maintaining compliance after approval.

Understanding Michigan’s Charitable Solicitation Law

Michigan’s regulatory framework for nonprofits protects donors while ensuring transparency. Understanding the legal foundation of the state’s charitable solicitation requirements helps you navigate the registration process more effectively.

What the Charitable Solicitation Act covers

The Michigan Charitable Organizations and Solicitations Act serves as the primary regulatory framework governing fundraising activities in the state. This comprehensive legislation establishes the rules for organizations seeking to solicit donations from Michigan residents.

The Act specifically addresses:

• The definition of charitable solicitation activities
• Registration requirements for organizations engaging in fundraising
• Financial reporting obligations for registered organizations
• Disclosure requirements when soliciting funds
• Enforcement mechanisms for non-compliance

The law aims to promote transparency by requiring organizations to register before asking Michigan residents for donations. The charitable solicitation registration process creates accountability and helps maintain public trust in the nonprofit sector.

Who needs to register and why it matters

Generally, any organization that solicits or receives contributions in Michigan must register with the Attorney General’s Charitable Trust Section unless specifically exempt. This includes:

• Michigan-based nonprofits conducting fundraising campaigns
• Out-of-state organizations soliciting donations from Michigan residents
• Organizations using professional fundraisers in Michigan
• Nonprofits with paid staff conducting fundraising activities

Registration matters for several critical reasons:

1. Legal compliance: Operating without proper registration when required can lead to penalties, fines, and potential shutdown of fundraising activities
2. Donor confidence: Registered organizations demonstrate commitment to transparency
3. Grant eligibility: Many foundations require proof of proper charity registration before considering grant applications
4. Protection from fraud claims: Registration provides legitimacy to your fundraising efforts

Proper registration protects both your organization and the public.

Common misconceptions about exemptions

Many nonprofits mistakenly believe they don’t need to register in Michigan due to several persistent myths:

Myth 1: Small organizations are automatically exempt
Reality: Size alone doesn’t create an exemption. The nature of your fundraising activities determines registration requirements, not organizational size.

Myth 2: Having 501(c)(3) status means you don’t need state registration
Reality: IRS tax exemption and state charitable solicitation registration are entirely separate requirements. Federal tax status doesn’t affect state registration obligations.

Myth 3: Religious organizations never need to register
Reality: While some religious organizations may qualify for exemptions, this isn’t universal. The specific nature of fundraising activities often determines whether registration is required.

Myth 4: Volunteer-only fundraising means no registration needed
Reality: Whether your fundraisers are paid or volunteer doesn’t automatically determine registration requirements. The total amount raised and other factors may still trigger registration obligations.

Understanding these common misconceptions helps organizations avoid unintentional non-compliance. When in doubt, seeking professional guidance about your specific situation is always wiser than assuming an exemption applies.

Before proceeding with your nonprofit license application, you should thoroughly evaluate whether any exemptions truly apply to your organization based on Michigan’s specific requirements rather than general assumptions.

Step 1: Determine If Your Nonprofit Needs to Register

Determining whether your organization must complete charitable solicitation registration in Michigan requires understanding several key criteria. Michigan law establishes clear guidelines to help you make this determination.

Annual fundraising threshold and volunteer-only rule

The Michigan Charitable Organizations and Solicitations Act provides an exemption that many smaller organizations can utilize. Your nonprofit may be exempt from registration if it meets two critical conditions simultaneously:

• You raise less than $25,000 in contributions during any 12-month period
• All your fundraising activities are conducted exclusively by unpaid volunteers

This exemption applies to the annual total of all contributions received, excluding grants from government agencies or restricted grants from foundations. Even if you believe your organization qualifies for this exemption, you should formally request and receive approval from the Attorney General’s Charitable Trust Section by submitting the CTS-03 Request for Exemption Form. Do not assume you’re exempt without official confirmation.

When paid fundraisers trigger registration

Utilizing paid staff or professional fundraisers generally triggers registration requirements, regardless of your organization’s size, unless another exemption applies. This requirement applies in several scenarios:

1. When you have any paid staff members whose duties include fundraising
2. When you hire external professional fundraisers
3. When staff compensation is computed based on funds raised
4. When your organization raises any amount with paid fundraising assistance

Professional fundraisers themselves must be licensed under the Solicitations Act. They need to complete specific application forms, obtain a $10,000 bond, and submit contract summaries for each charitable organization they represent.

If your charitable solicitation activities involve any paid assistance, you should prepare for registration requirements immediately since no exemption applies in these cases unless otherwise specified by law.

Special cases like clothing donation bins

Clothing donation bins represent a unique category requiring careful attention. These collection points fall under specific provisions of the Charitable Organizations and Solicitations Act.

A person or entity that owns or operates a clothing donation box and represents that donations or proceeds will benefit a charity may be treated as a professional fundraiser under state law. Operators must ensure they are properly licensed when required, avoid misrepresenting charitable affiliations, and provide clear identification consistent with the Act’s disclosure rules.

If your nonprofit utilizes or is affiliated with clothing donation bins, take special care to ensure compliance. The Attorney General has enforced these regulations against non-compliant bin operators. Local governments may also have additional rules for donation bins, so check applicable local ordinances.

Understanding these key criteria helps you make an informed decision about your nonprofit’s registration needs. If you’re uncertain about your status, consulting with a compliance professional can provide clarity and peace of mind.

Step 2: Prepare Required Documents

Once you’ve determined registration is necessary, gathering the proper documentation becomes your next priority. The Michigan Attorney General’s office requires specific documents to process your charitable solicitation registration successfully. Working with experienced compliance specialists can help ensure you gather the right documents from the start, saving time and preventing delays in your registration.

Articles of incorporation and IRS determination letter

Every organization must submit its foundational documents as part of the charitable solicitation registration process:

• Articles of Incorporation or other organizing documents, and bylaws (if any)
• IRS Determination Letter (if your organization has obtained federal tax-exempt status)

To obtain a copy of your determination letter issued after January 2014, you can download it through the IRS Tax Exempt Organization Search tool. For determination letters issued before 2014, submit Form 4506-B to the IRS. Processing can take several weeks.

List of board members and financial statements

Michigan requires comprehensive information about your organization’s leadership and finances:

• List of Officers and Directors
• Financial documents, which may include:
• IRS Form 990
• Audited financial statements (if applicable)
• Professional fundraising contracts (if you use professional fundraisers)

Comprehensive charity registration ensures transparency and builds donor trust. Accurate financial reporting is particularly important for demonstrating accountability. Having a dedicated compliance specialist review your documentation before submission helps ensure accuracy and completeness the first time.

Additional documents for out-of-state nonprofits

If your organization will also foreign qualify to transact business in Michigan through the Department of Licensing and Regulatory Affairs (LARA), be prepared to provide documents required for that process, such as:

• A certificate of good standing from your home state (often required to be recent, within 30 days)
• A certified copy of your articles of incorporation with amendments
• Registered agent information for a Michigan resident agent/registered office

These foreign qualification items are separate from the charitable solicitation registration but are commonly needed when an out-of-state organization is transacting business in Michigan.

Step 3: Complete the Michigan Registration Process

After gathering all necessary documents, completing the actual charitable solicitation registration process in Michigan involves several straightforward steps. The process requires attention to detail but remains accessible for most organizations, especially when guided by specialists who understand Michigan’s specific requirements.

How to access the registration form

The primary form for initial registration is the CTS-01 Initial Solicitation Form. Organizations can access this document from the Michigan Attorney General’s website under the Charitable Organizations section. Michigan also accepts the Unified Registration Statement (URS), which many multi-state filers use.

For organizations seeking professional assistance with charitable registration, third-party services can streamline the process and ensure all Michigan-specific requirements are addressed properly.

Filing fees and payment methods

Among the most appealing aspects of Michigan’s charitable solicitation process is that there is currently no fee to register. This zero-cost registration applies to both initial applications and renewals. This cost-free approach makes Michigan’s charitable solicitation compliance more accessible compared to many other states that charge substantial fees.

Where and how to submit your application

Michigan offers multiple submission methods for your convenience:

• Email: Send PDF versions of your forms to ct_email@michigan.gov (include your organization name in the subject line)
• Online: Submit through the Multi-State Filer Project at efile.form990.org/frmNPParticipatingStateSCOMI.asp
• Mail: Submit paper forms to the Charitable Trust Section at PO Box 30214, Lansing, MI 48909
• Overnight delivery: Send to 525 West Ottawa Street, 3rd Floor Williams Building, Lansing, MI 48933

For fastest processing, email or online filing is often recommended. After submission, verify receipt by searching for your organization at www.michigan.gov/AGCharitySearch—your status should appear as “Application/registration pending.”

Organizations seeking help with multi-state charitable registration often benefit from specialized compliance services that handle submission across all applicable jurisdictions and provide secure tracking of your filing status.

How long the registration is valid

Once approved, your Michigan registration remains valid for a period extending to seven months after the end of your organization’s fiscal year. Subsequently, to maintain compliance, you must submit a renewal application (Form CTS-02) at least 30 days before your registration expires.

Extensions are available upon written request submitted before expiration (typically an additional five months). Without proper renewal, your nonprofit license will lapse, potentially subjecting your organization to penalties under Michigan law.

The processing time for initial applications typically takes 4-6 weeks, so plan accordingly to ensure continuous authorization for your fundraising activities.

Step 4: Stay Compliant After Registration

Securing your initial registration marks only the beginning of your compliance journey. Ongoing attention to Michigan’s requirements helps protect your nonprofit’s legal standing and reputation. Managing renewals and ongoing compliance requirements can be complex, which is why many organizations rely on dedicated specialists to track deadlines and ensure timely submissions.

Annual renewal requirements

Your charitable solicitation registration expires 7 months after your fiscal year ends and must be renewed at least 30 days before expiration. Michigan offers a straightforward renewal process:

• Complete Form CTS-02 (Renewal Solicitation Form)
• Submit it via email, mail, or online
• Include current financial statements
• There’s no fee for renewals in Michigan

Need more time? Request an extension for 5 additional months by emailing ct_email@michigan.gov with your explanation. For comprehensive charitable registration assistance, many organizations seek professional help to ensure they never miss a critical deadline.

Prohibited fundraising practices

Michigan law forbids various fundraising activities, including:

• Misrepresenting that funds will be used for specific charitable purposes
• Diverting contributions to purposes other than stated
• Falsely claiming special donor benefits or unfavorable treatment for non-donors
• Making false statements about the organization’s tax-exempt status
• Using deceptive practices in solicitation materials

See MCL 400.293 for detailed provisions on prohibited practices.

Penalties for non-compliance

Violations of the Charitable Organizations and Solicitations Act can result in civil fines and criminal penalties under Michigan law. The Attorney General has the authority to:

• Issue cease and desist orders
• Impose civil penalties
• Seek injunctive relief
• Pursue criminal charges for willful violations

Review the statute for current penalty provisions and enforcement mechanisms.

Record-keeping requirements

Maintain accurate records of all fundraising activities, including:

• Solicitation materials and communications
• Financial records showing how donations are used
• Contracts with professional fundraisers
• Board meeting minutes related to fundraising decisions

These records should be readily available for inspection by the Attorney General’s office if requested.

Frequently Asked Questions

Conclusion

Navigating Michigan’s charitable solicitation requirements might seem daunting at first, but following this step-by-step process ensures your organization remains legally compliant while building donor trust. Your nonprofit must first determine whether registration applies to your situation, especially considering the $25,000 fundraising threshold and volunteer-only exemptions. Remember, assumptions about exemptions often lead to unintentional violations, so verifying your status through official channels remains critical.

Document preparation marks a crucial step in your charitable registration compliance journey. Articles of incorporation, IRS determination letters, board member lists, and financial statements create the foundation for a successful application. Out-of-state organizations that also foreign qualify to do business in Michigan will have additional requirements through LARA, such as a certificate of good standing and registered agent designations.

Michigan offers several advantages during the actual registration process, notably the absence of filing fees for both initial applications and renewals. This cost-free approach makes Michigan more accessible compared to many states with substantial charitable solicitation fees. Multiple submission methods also provide flexibility based on your organization’s preferences and timeline needs.

Compliance extends well beyond your initial registration. Annual renewals, avoidance of prohibited practices, and awareness of potential penalties should remain top priorities for your organization. The state imposes consequences for violations, including fines and possible criminal charges. With expert guidance from Labyrinth, Inc., specialized compliance professionals who understand the intricacies of nonprofit registration across multiple states, your organization can maintain good standing while focusing on its mission. We provide the reliability and personalized support that busy nonprofit teams need to stay compliant without administrative burden through our comprehensive charitable registration services.

Your nonprofit deserves protection from legal complications while pursuing its important work. Proper nonprofit registration management safeguards both your organization and the donors who support your cause. Take time to understand these requirements, follow each step diligently, and your organization will stand on solid legal ground while building the trust necessary for fundraising success in Michigan.