New Filing Threshold for Michigan Nonprofits

On March 31, 2011, a change in Michigan law became effective.  Now, generally speaking, nonprofits with contributions under $25,000 in a twelve month period are not required to register with the Michigan Attorney General.  Nevertheless, nonprofits that fall under the $25,000 limit should specifically request an exemption from the registration requirements by filing this form.

http://www.michigan.gov/documents/ag/Fillable_Exemption_Form_2-9-09_Final_266603_7.pdf

Note, the actual language is a bit more cumbersome than what is stated above.  Specifically, the exemption from registration is available to "an organization that does not intend to solicit and receive, and does not actually receive, contributions in excess of $25,000.00 during any 12-month period".  And, this exemption only is available to all volunteer organizations.

Nonprofits that expect to receive contributions in excess of $25,000 in a twelve month period don't qualify for this exemption.

And, it is notable that grants from governmental agencies or restricted grants from foundations are not "contributions" for purposes of the threshold test.

There are all sorts of other bases for exemption from registration as the laundry-list on the attached form indicates.  It's always wise to check with your attorney to properly determine your filing requirements.