How To Register An Ngo In Michigan

Welcome to our Michigan Nonprofit Startup Guide! If you're passionate virtually helping others and have an idea to serve your community, starting a nonprofit is a dandy way to plough your vision into a reality. There are many different types of nonprofits - religious, educational, human being service oriented, animal welfare, and more. What all nonprofits accept in common is a focus on helping others and benefiting their community. Y'all are genuinely committed to these goals so you are already well on your fashion!

According to the National Center for Charitable Statistics, there were over 44,000 nonprofit organizations in Michigan in 2012. Before you start a new nonprofit, make sure you have identified an unmet need in your community and know that there are non whatever existing organizations serving your crusade. If some other organization exists, consider working together, as that may be a better way to make an affect in your customs and use existing resources.

When you are set to get-go your nonprofit, plan to incorporate and use for 501(c)(3) status, as these are of import steps to fully achieve your goals. As a 501(c)(three) nonprofit, you will be able to apply for grants and accept donations, be exempt from federal corporate income tax, and limit the liability of your organisation's officers and directors. Most importantly, you volition proceeds credibility and legitimacy for your cause, instilling the public with conviction in your organization.

This guide will walk you lot through the basic steps to start your nonprofit in Michigan. Let'south go started!

Your organization's proper noun establishes its brand and is also important for incorporating with the state. The legal proper noun of your nonprofit corporation may not conflict with any other organization registered in the state. Make sure the name is available and meets state requirements.

Name Search:	Michigan Department of Licensing and Regulatory Affairs (LARA) - Agency of Corporations, Securities & Commercial Licensing - Corporations Division Name search
Suffix:	Not required. 162 MCL §450.2212

The incorporator is the person who signs the Articles of Incorporation for your nonprofit. Yous will need at least ane, only can take more than one. Directors brand up the governing torso of your nonprofit corporation and are stakeholders in your organization'south purpose and success. You'll want to identify three, unrelated individuals to come across IRS requirements. You will likewise want to be enlightened of any historic period or residency requirements.

Michigan director requirements:

Number: minimum 3
Qualifications: A corporation organized for purposes described in section 501(c)(3) of the internal revenue code of 1986 may include 1 or more directors on its board who are 16 or 17 years of age every bit long as that number does not exceed 1/2 the full number of directors required for a quorum for the transaction of business concern. No residency requirement. No membership requirement.
Term: side by side annual meeting and until successor elected and qualified
Quorum: majority
Committee: minimum one managing director

Michigan officer requirements:

A president, a secretary, and a treasurer are required.
Two or more offices may exist held past the same individual. This person may sign instruments in only one capacity when the signatures of 2 officers are required.

A registered amanuensis is responsible for receiving legal notices on behalf of your organisation. The appointed registered amanuensis must exist physically located in the state and maintain an part that is open during regular business hours. As a nationwide registered agent, our service is designed to receive your legal documents and provide secure access to those documents through your online account. Our local Michigan registered agent role is located in Okemos, MI. Nosotros offering registered agent service independently or equally office of our nonprofit formation packages.

Your nonprofit's manufactures of incorporation officially mark the creation of your arrangement. They document where and when the arrangement was formed and capture other information necessary to verify its existence. While requirements for language vary from state-to-state, there are some basic provisions that the IRS volition look for when you lot apply for 501(c)(three) exemption. It is important to customize the articles for your arrangement and brand certain you come across the state and IRS requirements. Meeting these requirements from the start will assistance avoid having to make amendments later or risk getting your 501(c)(3) application rejected. Some states will also require y'all to publish your manufactures of incorporation, so be mindful of any deadlines and publishing instructions.

Agency:	Michigan Section of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Corporations Division
Form:	Articles of Incorporation - Nonprofit
Instructions:	Michigan Nonprofit Corporation Filing Data
Filing Method:	Mail service or in person. MICH-ELF filers may file by fax or email.
Agency Fee:	$20 + optional $50-i,000 expedite service
Turnaround:	~5-7 business days with returned documents in ~4 weeks. ~24 hours for $50. Same 24-hour interval for $100. two hours for $500. 1 hr for $1,000. Run across Expedited Service Request
Law:	Michigan Compiled Laws (MCL) - Chapter 450: Corporations - Human activity 162 of 1982: Nonprofit Corporations Act
Notes:	Submit one original of this document. Upon filing, the document will exist added to the records of the Corporations Bureau. The original will be returned to your registered office address, unless yous specify otherwise. Veteran-owned nonprofits can apply to accept the incorporation fee waived by following the instructions on this page.

Afterwards filing articles of incorporation, y'all must file an initial written report.

This unique, ix-digit number is assigned by the IRS to identify your nonprofit. All types of nonprofits will apply for an EIN, not only those that hire employees. You will use your EIN to open a bank business relationship, apply for 501(c)(3) status, and submit 990 returns to the IRS.

Bureau:	Internal Acquirement Service (IRS)
Class:	IRS Form SS-four
Filing Method:	Mail, phone, fax, or online.
IRS fee:	$0
Turnaround:	Immediately online or by phone. 4 business days by fax. 4-five weeks by mail.
Notes:	The IRS website is only available during certain hours. Print your EIN before closing your session. For additional guidance, run into IRS Pub 1635: Understanding Your EIN.

As you launch your nonprofit, y'all volition receive a number of official documents. Organizing these documents in one place will save you headaches down the road. You volition soon accept numerous items to keep in your records including your EIN letter, bylaws, coming together minutes, 501(c)(3) determination letter, and more.

A great way to maintain necessary documentation is Records Managing director, our software for storing records deeply, tracking directors and officers, and getting notified of meetings.
Your bylaws are the governing document for your nonprofit. They serve as your organization'southward operating transmission and should be consistent with your articles of incorporation and the law. When your Board of Directors meets for the first time, you'll review and ratify the bylaws and they will be a roadmap for governance from there.

At the same time, yous'll likewise want to create and adopt a conflict of involvement policy. A disharmonize of interest is when someone in a cardinal position in your nonprofit has competing interests and is making choices that could benefit themselves to the harm of the arrangement. Personal interests should be set aside and organizational interests prioritized. If a disharmonize of interest does arise, it should be disclosed immediately.

Your application to the IRS for 501(c)(3) exemption will require that both the bylaws and the conflict of interest policy are approved and adopted. Once they've been adopted, safely shop them in your Nonprofit Records Kit.
The initial organizational meeting of your Lath of Directors will be incredibly productive. At this coming together you will approve the bylaws, adopt the conflict of involvement policy, elect directors, engage officers, and approve resolutions such as opening the organization's banking company account. Important decisions are being made so be sure to record them in the meeting minutes.

Register with the Section of Treasury for Sales Tax, Use Tax, Income Tax Withholding, Corporate Income Tax, Menstruum Through Withholding, Unemployment Insurance Taxation.

Submit to:	Michigan Department of Treasury http://www.michigan.gov/treasury
Form:	Form 518: Registration for Business concern Taxes
Filing Method:	Mail, fax, or online
Fee:	$0
Turnaround:	half-dozen+ weeks
Notes:	Mail service your awarding at least six weeks but non more than than six months, earlier y'all intend to start your business to allow your registration to be processed. The treasury volition forward your application to Unemployment Insurance Agency (UIA).

Applying for 501(c) taxation exemption tin feel like the most daunting step in bringing your nonprofit dream into reality, only obtaining tax exemption comes with many benefits. Y'all will exist able to apply for grants and grow your fundraising success in addition to existence exempt from IRS income revenue enhancement. 501(c) is the chapter of the Internal Acquirement Code that regulates nonprofit organizations. Similar others, you lot may be well-nigh familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(iii) nonprofits apply using Class 1023 or Form 1023-EZ. Review the criteria for each application and make sure yous meet the eligibility requirements ready out by the IRS. Other types of nonprofits, including 501(c)(4)s and 501(c)(six)s, utilize using Form 1024. Subsequently reviewing and blessing your application, the IRS will render a Determination Letter officially recognizing your exemption.

Completing the federal application for taxation exemption is significantly easier with the help and support of a professional. Find someone with the expertise to ensure the right awarding is being used and is completed accurately. A well-prepared awarding takes time, over 100 hours by IRS estimates, then put yourself on the path to success by finding a specialist to walk aslope y'all in the journeying - from showtime to tax-exempt finish!

Bureau:	Internal Revenue Service (IRS)
Course:	IRS Form 1023, IRS Course 1023-EZ, or IRS Form 1024
Instructions:	IRS Instructions for Form 1023, IRS Instructions for Class 1023-EZ, or IRS Instructions for Grade 1024. Besides come across guidance IRS Pub 557: Revenue enhancement-Exempt Condition for Your Organization.
Filing Method:	Post
Agency Fee:	$275 for organizations filing Class 1023-EZ and $600 for organizations filing Form 1023.
Turnaround:	1023-EZ average: <1 calendar month. 1023 average: 3-vi months.

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With your IRS Determination Letter of the alphabet in hand, make certain you familiarize yourself with your state's requirements for recognizing your nonprofit's tax-exempt condition. This is an area where requirements vary state-by-land. Many states issue their own revenue enhancement-exempt certificate that can be used for sales and use taxation purposes, but information technology may require application and periodic renewal.

To file to obtain exemption from state income tax:

Not required

Nonprofits are exempt from Michigan's 6% Michigan Corporate Income Tax (CIT). No filing is needed.

More information: Michigan Department of Treasury

To file to obtain Sales and Use Tax Exemption:

Not required

Michigan nonprofits are automatically exempt from country sales and apply tax. Simply complete and present Form 3372: Michigan Sales and Use Taxation Certificate of Exemption to sellers and vendors.

This is some other area where laws differ from country to country, but nearly states crave whatsoever nonprofit soliciting donations to annals to practise and then on an almanac ground. This means registering in the state prior to soliciting whatsoever resident of that land. Registering in your home country is essential, simply yous may also need to register other states depending on the scope of your system.

Michigan Charitable Solicitation Registration

Agency:	Michigan Attorney General - Charitable Trust Section
Law:	Michigan Compiled Laws §400.271 through 400.292
Foreign Qualification is Prerequisite:	No
Registered Agent (Special Agency) Required?	Yes

Erstwhile Exemption Registration

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Exemption Eligible Organizations:	Organizations exempt under both the Charitable Organizations and Solicitations Act (COSA) and the Supervision of Trustees for Charitable Purposes Act (STCPA): An organization that requests contributions just for the relief or benefit of a named individual or family with all fundraising conducted by persons who are unpaid for their service A Michigan educational establishment canonical by the Michigan Board of Educational activity A veterans system incorporated under federal constabulary A licensed hospital (Health systems and other affiliates are non exempt fifty-fifty if they include a licensed hospital) A school booster organization operating with the knowledge and blessing of an educational institution for the support or promotion of educational, artistic, musical, or athletic programs or events A governmental unit of measurement or instrumentality An advocacy or lobbying system, or an organisation associated with an advocacy organization, party, candidate or committee, that does not have 501(c)(3) status (If the organization'southward IRS 501(c)(3) determination alphabetic character requires it to file a Grade 990, 990-EZ, or 990-North, the organization likely does not qualify for this exemption) An organization that volition not have 501(c)(3) status and whose principal purpose is not charitable but that solicits from fourth dimension to time for a charitable purpose (To qualify for this exemption the organization must not have or intend to receive 501(c)(iii) condition, all fundraising must exist performed past members of the organization who are not paid for their services, and all funds must be wholly used for the purposes for which they were solicited) Organizations exempt nether COSA: An organization that confines solicitations to drives solely among members, directors and their immediate families, where the full general public is non invited to become a member. This includes a individual foundation for IRS taxation purposes that receives contributions solely from incorporators, directors, stockholders or their families, or from a sponsoring business concern An organization whose sole source of contributions is a charitable organization registered with this office to solicit contributions A hospital-based foundation or auxiliary that solicits contributions solely for 1 or more than licensed hospitals An organization that does not intend to solicit and receive, and does not actually receive, contributions in excess of $25,000 (Excluding grants from government agencies or restricted grants from foundations) during any 12-month flow (All fundraising functions must be conducted by persons, whether staff or contractors, who are not paid for their services and the system must make a financial statement of its activities of its about contempo fiscal year available to its members and the public) A nonprofit corporation whose purpose is the owning and operating of facilities for the aged and chronically ill that is nether the sole control of a religious or fraternal society An system at least fifty% of whose activities are licensed by the Michigan Department of Wellness and Human Services to serve children and families Organizations exempt under STCPA: An organization incorporated or organized in a land other than Michigan that will never hold assets in Michigan, including cash, savings accounts, investment accounts, land, building, equipment, etc. An arrangement that receives operating funds from United Way An apprentice theater, band, orchestra, chorale or dance system
Grade:	Form CTS-03: Request for Exemption
Filing Method:	Mail or email to ct_email@mi.gov.
Agency Fee:	$0
Notes:	Exemptions do not elapse as long as the organization continues to qualify nether the exemption criteria.

Initial Registration

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Class:	Class CTS-01: Initial Solicitation Registration Form
Filing Method:	Post, email to ct_email@michigan.gov, or online.
Agency Fee:	$0
Turnaround:	4-six weeks
Notes:	One principal officer or manager must sign. Signatures need not exist notarized. Verify that the attorney general's office received the registration form by searching for the organization at www.michigan.gov/AGCharitySearch Post-obit review if your initial registration or exemption, the Chaser General may instruct your organization to complete additional forms. Some Michigan counties and municipalities may require charities that solicit in-person to register prior to fundraising.
Before you Apply:	Domestic Applicants: Bank check the available exemptions to run across if your charity is eligible for exemption from the full registration requirement. Appoint a registered agent to receive legal documents in Michigan. If your charity meets the inspect threshold, obtain an audited fiscal report to submit with your registration application. Look through the listing of required attachments and brand sure that you take each required document in hand before starting the registration application. Foreign Applicants: Cheque the available exemptions to meet if your charity is eligible for exemption from the full registration requirement. Engage a registered agent to receive legal documents in Michigan. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application. Look through the list of required attachments and make sure that you accept each required document in manus before starting the registration awarding. If you will strange qualify in Michigan, obtain a certificate of skilful continuing from your abode land to submit during the foreign qualification process. The certificate cannot be more than than 30 days old when filing foreign qualification documents.
How to Apply:	Domestic Applicants: File entity formation documents with the Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Corporations Sectionalisation. Submit an Initial Solicitation Registration Grade and all required attachments to the Michigan Attorney General - Charitable Trust Section. Foreign Applicants: Determine whether or not your charity will need to foreign qualify based on your activity in Michigan. If not required, skip to number 3. File foreign qualification documents with the Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Corporations Division. Submit an Initial Solicitation Registration Form and all required attachments to the Michigan Attorney General - Charitable Trust Department.
Required Attachments:	IRS form 990 Audited financials (if applicable) Articles of incorporation Bylaws IRS determination letter List of officers and directors Professional fundraising contracts

Registration Renewal

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Form:	Grade CTS-02: Renewal Solicitation Registration Class
Filing Method:	Mail, e-mail to ct_email@michigan.gov, or online.
Agency Fee:	$0
Due:	Annually within 7 months after the shut of your nonprofit'southward financial twelvemonth. And then if your financial calendar ends Dec 31, then the renewal is due by July 31. There is no official start to the renewal period, so renewals may be submitted every bit before long every bit financials go bachelor for the most recently completed fiscal year.
Due Engagement Extension:	Due dates can be extended for 5 months across the original due date by emailing ct_email@michigan.gov with an caption of your asking for extension. A re-create of IRS class 8868 must be included when requesting an extension.
Required Attachments:	IRS course 990 Audited accrual basis financials (if applicable) Listing of officers and directors Professional fundraising contracts Only if amended: IRS determination letter, manufactures of incorporation, and bylaws

Alter of Fiscal Yr

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Cancellation

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Agency Fee:	$0
Notes:	To close out your registration, submit a letter of the alphabet indicating the organization will no longer accept contributions from Michigan sources (including via internet). The process may be dissimilar for organizations that hold avails in Michigan.

To fundraise nationally or online, please come across our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

Running your nonprofit corporation legally also means securing all applicable licenses and permits. The range of local, state, and federal requirements is wide. Access resources like the Small Business organization Administration Business organization License & Allow await-up tool and search past your business type and locality.

Nonprofits who wish to behave bingo, raffles, and other charitable games must obtain a license.

Submit to:	Michigan Lottery Charitable Gaming http://www.michigan.gov/cg/
Form:	Qualification Information Form
Filing Method:	Mail
Fee:	varies
Turnaround:	~8 weeks
Law:	Michigan Charitable Gaming

Yous've made information technology! You turned your passion into a legitimate nonprofit corporation exempt under IRS 501(c) and are benefiting your community. That solid foundation on which you lot built your organisation requires ongoing maintenance. Investing in maintaining compliance with all of the regime agencies is an ongoing responsibility and commitment needed to ensure your vision continues long into the future. Check out our compliance guide to acquire more!

Once you have registered your nonprofit per the steps listed to a higher place, yous will demand to maintain compliance with all of the government agencies. Staying current with the IRS and country requirements is an ongoing responsibility. Continue reading our Michigan nonprofit compliance guide to larn more!

Go on reading "Michigan Nonprofit Compliance"

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Fast Facts

Below is an overview of the paperwork, toll, and time to first an Michigan nonprofit.

Paperwork

Form CSCL/CD-502: Articles of Incorporation for use by Domestic Nonprofit Corporations or Form CSCL/CD-503: Articles of Incorporation for utilize by Ecclesiastical Corporations
Bylaws
IRS Form SS-4: Apply for EIN
IRS Class 1023: Application for 501(c)(3) Exemption
IRS Determination Letter of the alphabet
Course 518: Registration for Business Taxes
Form 3372: Michigan Sales and Use Tax Document of Exemption
URS Charitable Registration, if applicable
Michigan Initial Solicitation Registration Course

Cost

Incorporation: $20 + optional $l-ane,000 expedite service
501(c): $275 or $600 IRS fee

Time

Incorporation: ~v-7 business days with returned documents in ~iv weeks. ~24 hours for $l. Same day for $100. 2 hours for $500. 1 hour for $one,000.
501(c): 2 weeks to iii months

Revised September 07, 2021. Complete data terminal reviewed October 19, 2016.