Welcome to your daily briefing on nonprofit developments in Michigan. Today we're covering 4 key stories including updates on michigan nonprofit headlines, background & context. Let's dive in.
1 story
MI Funding Hub is a Michigan-focused resource that aggregates grants and funding opportunities, with technical assistance and tools to support nonprofit and community projects.
For Michigan nonprofit professionals, this provides a dedicated pathway to identify funding options and practical support in one place.
Reach professionals in this market
3 stories
Negligent-screening claims arise not from failing to have a screening policy, but from failing to follow the policy that exists. A documented policy with inconsistent enforcement is harder to defend than no policy at all, because the deviation is evidence of negligence.
Insurance carriers tighten coverage on organizations with screening-process gaps. The cost of consistent enforcement is small; the cost of a single uninvestigated incident can close the organization.
Unrelated business income tax applies when an activity is regularly carried on, is a trade or business, and is not substantially related to the exempt purpose. Common surprises: corporate-sponsored events with naming rights that look like advertising, affinity credit-card royalties that include co-marketing services, and gift-shop sales of items unrelated to the mission.
UBIT exposure can cost both tax and exempt status if the unrelated business becomes substantial. The line between sponsorship (excluded) and advertising (included) is narrow and case-specific.
Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.
State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.
Get Michigan nonprofit intelligence delivered to your inbox every morning.
Subscribe FreeView all past issues
Feature your brand across the U.S., Canada, and select international markets and 10 industry verticals.
Become a National Partner