Welcome to your daily briefing on nonprofit developments in Michigan. Today we're covering 5 key stories including updates on michigan nonprofit headlines, background & context. Let's dive in.
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The Michigan Attorney General's office provides an online search portal to look up information on registered charities, public safety organizations, and professional fundraisers operating in the state.
Nonprofit professionals in MI can use this tool to verify compliance status, research competitors, and ensure transparency in the charitable sector.
MI Funding Hub is a centralized platform where Michigan communities can explore grants, access technical assistance, and find tools to support funding applications.
Nonprofit professionals in MI can streamline their grant research and strengthen proposals using resources specifically designed for local organizations.
Reach professionals in this market
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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.
The streamlined Form 1023-EZ is available only to organizations meeting specific limits on projected revenue, assets, and activity types. Filing 1023-EZ when ineligible produces a determination that is technically valid but vulnerable to retroactive revocation if discovered. The full 1023 is harder to file but harder to challenge.
Loss of exemption is retroactive to the original determination, exposing the organization to back-tax liability. The eligibility checklist is the only protection.
Most states require charities soliciting donations from their residents to register before solicitation, regardless of where the charity is based. "Solicitation" includes web fundraising pages accessible to residents, not just direct mail. Compliance gaps surface during state attorney-general inquiries or unrelated litigation discovery.
Penalties range from civil fines to suspension of solicitation rights in the state. Larger consequences include negative coverage in donor research databases that fund foundation grants.
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