Plante & Moran has information on obtaining Not-For-Profit Status for both Michigan and Ohio. To discuss how you can obtain your Not-For-Profit status, please contact us.
Michigan Nonprofit Organizations - Steps Required to Obtain Tax-Exempt Status Under Section 501(C)(3) - Draft governing documents; most organizations form a Michigan nonprofit corporation by filing Articles of Incorporation with the State. Filing fee to the State: $20.
- Obtain employer identification number by filing Form SS-4 with the IRS. No filing fee.
- Apply for recognition of tax-exempt status by filing Form 1023 with the IRS. Filing fee: $750 for organizations expecting more than $10,000 in annual gross receipts.
- Register with the State of Michigan Attorney General’s office as a charitable organization by filing Initial Charitable Trust/Charitable Solicitation Questionnaire. No filing fee involved.
- Once assets are held, file Charitable Trust Registration Statements with State of Michigan Attorney General’s office . No filing fee.
- Obtain directors and officers (D&O) insurance. Contact your insurance agent for an up-to-date quote.
- Annual reporting requirements include Form 990, Return of Organization Exempt from Income Tax, filed with the IRS, if gross receipts exceed $25,000. No tax liability unless the organization engages in unrelated activities.
- Application for License to Solicit Donations must be filed annually with the Michigan Attorney General’s office if contributions of more than $8,000 are received or anticipated. No filing fee involved.
- Michigan Annual Report is filed each October 1 with the Michigan Corporation, Securities and Land Development Bureau. Filing fee: $20.
NOTE: Most forms can be obtained from IRS and Michigan websites, as follows:
- IRS – www.irs.gov
- Michigan (Attorney General/Charitable Trust division)
- Michigan (Corporation, Securities, Land Development Bureau)