Content Navigation
The Michigan CTS-02 form plays a crucial role in the renewal process for charitable organizations seeking to solicit donations in the state. This form is primarily intended for organizations that are renewing their solicitation registration or for those whose previous registration has expired. It's essential for these organizations to provide updated information, including any changes to their organizing documents, bylaws, or charitable purposes since their last submission. The form must be filed 30 days before the registration expiration date, which occurs seven months after the close of the organization’s fiscal year. Notably, there is no fee associated with the renewal, and submissions can be made via email, fax, or traditional mail. Organizations must also designate a resident agent in Michigan, report any changes in tax status, and provide detailed financial statements and summaries of their charitable activities. This ensures transparency and compliance with the Charitable Organizations and Solicitations Act (COSA), which aims to protect both the public and the charitable organizations themselves.
Michigan Cts 02 Example
CTS - 02
AUTHORITY: MCL 400.271 et seq.
PENALTY: civil, criminal
State of Michigan Department of Attorney General
RENEWAL SOLICITATION FORM
Charitable Organizations and Solicitations Act (COSA)
Who should file this form?
Charitable organizations:
•Renewing their solicitation registration;
•Whose prior solicitation registration has expired. If your registration has expired, provide copies of any changes to your organizing documents, bylaws, IRS status, or charitable purposes since your previous submission.
Who should not file this form?
•Charitable organizations filing for the first time to solicit in Michigan. Instead, use Form CTS- 01;
•Organizations exempt from registration. See Form
INSTRUCTIONS
GENERAL INFORMATION
Extensions – Your solicitation registration will expire 7 months after the close of your fiscal year (financial accounting period). Your renewal form is due 30 days before the expiration of your registration. If you need an extension of time to file the Renewal Solicitation Form, it must be requested in writing before your registration expires. Your registration expiration date will be extended for 5 additional months.
Use of file number – The organization has been assigned a file number that must be used on correspondence and forms sent to this office. Your file number will be printed on the registration.
Fees – There is currently no fee to register to solicit in Michigan.
Filing the renewal form – You may renew your registration by email, efiling, fax, or by mail. For
faster processing, use email or efiling.
Email - Put the AG file number and legal name in the email subject line. The Form and
all required documents should be attached in PDF form.
Efile – On the Attorney General’s website, http://www.michigan.gov/agcharity, scroll down to the link for How to
Mail - Send the Renewal Solicitation Form to:
Department of Attorney General Charitable Trust Section
PO Box 30214 Lansing, MI 48909
Telephone: (517)
Fax: (517)
Email: [email protected]
For additional information, visit our website at www.michigan.gov/agcharity.
Verify that we have received your filing
Search for the organization at www.michigan.gov/AGCharitySearch. The search results will state, “Application/registration pending.”
SPECIFIC INSTRUCTIONS
To avoid delays and unnecessary correspondence, answer all questions completely.
Name – Enter the organization's exact legal name on the renewal form. This will be the same name as is currently on the articles of incorporation or other organizing document. If you use any names other than the legal name, enter each name on the solicitation form in the space All other names under which you intend to solicit.
Item 2. If your charitable purposes or activities have changed since submitting your last registration form, summarize in 50 words or less the organization's current charitable purposes. This summary will be added to our database and our searchable website. Do not simply quote or refer to the articles of incorporation or provide the standard IRS 501(c)(3) language.
Item 3. A Michigan resident agent must be named for the acceptance of process issued by any court. The renewal form will not be processed without this information. You must provide a street address, not a P.O. box. The organization cannot name itself, the Michigan Attorney General, or the
1
Michigan Secretary of State as its resident agent. You may designate a private individual residing in Michigan. If you need information on companies that will act as resident agent for a fee, you may wish to do your own internet research. Our office does not provide lists of such companies.
Item 9. The engagement and compensation of all professional fundraisers providing services on Michigan campaigns must be reported in the
schedule.
A professional fundraiser (PFR) is anyone who “plans, conducts, manages, or carries on a drive or
campaign of soliciting contributions for or on behalf of a charitable organization.” A consultant that only has consulting contracts does not have to be licensed as a professional fundraiser. Y ou do not have to report consulting contracts. E mployees of
a charitable organization are PFRs if they are
paid wholly or in part by commissions – including bonuses – based on funds raised.
If you are unsure if the services provided by a person or firm you contracted with are such that a PFR license is required, provide a copy of the contract with your renewal form and request to have the contract reviewed. You will be notified if you must complete Part II and if the contractor should be licensed as a PFR.
Verification of license of PFR - Michigan law requires that you verify that any PFR with which you contract for fundraising in Michigan is currently licensed with this office.
PFR Contract - You are required to provide copies of contracts with PFRs within 10 days of signing a new contract or extending an existing contract.
Campaign Financial Statement -
Campaign Financial Statements, Form
PFR Chart on Renewal Form-
Sum of all payments to / retained by PFR during the year reported – Include all fees, reimbursements, or other payments to the PFR that were related to the campaign or activity conducted by the PFR for the organization. Any monies that were retained by the professional fundraiser before remitting the proceeds of a campaign or activity to the charity must also be
included here. If the PFR listed was engaged after the close of the fiscal year reported in Item 10, enter "N/A" in this column.
Consultants - To qualify as a consultant, all of the following conditions must be met:
•the PFR is usually retained by a charitable or religious organization for a fixed fee or rate that is not computed on the basis of funds raised or to be raised;
•the PFR does not solicit funds, assets or property, but only plans, advises, consults, or prepares materials for a solicitation or fundraising event in Michigan;
•the PFR does not receive or control funds, assets, or property solicited in Michigan; and
•the PFR does not employ, procure, or engage any compensated person to solicit, receive, or control funds, assets, or property.
Item 10. An organization registering to solicit must provide a financial statement for its most recently completed fiscal year. If an organization files Form 990,
The IRS return must be prepared in accordance with IRS instructions. If you do not follow the instructions, we may question the return even if the IRS does not. All applicable schedules and attachments required by the IRS form or instructions must be submitted. However, if you file Form 990 or
Organizations that file Form
Item 11. - Briefly describe the organization's activities or accomplishments during the fiscal period. Provide a sheet if additional space is needed. Do not simply restate the organization's charitable purpose.
Item 12. – Complete all lines. You must enter the end date of the accounting period. Do not leave any lines blank. Enter "0" if applicable.
On line D, enter all costs related to conducting the charitable activities and accomplishments discussed in Item 11.
2
Item 13. Audited or reviewed financial statements requirement - If audited financial statements have been prepared for the year being reported, provide a copy with the renewal form. It is not necessary to complete the schedule.
For all others, complete the schedule to calculate if audited or reviewed financial statements will be required. Total support may be reduced by the amount of governmental grants received during the year.
Audited financial statements must be prepared in accordance with generally accepted accounting principles.
If audited or reviewed financial statements are required, but they have not been prepared:
•You may request a
•If the required financial statements are in the process of being prepared or you have already engaged an auditor to perform the necessary review or audit, provide a letter requesting a conditional registration. In your letter, state when you expect the financial statements to be available. Also, provide a copy of the signed engagement letter agreement with the audit firm. The solicitation registration will
include the condition that the required financial statements are to be provided by a specified date.
•The financial statements requirement may be suspended for food banks and similar organizations whose contributions are substantially
typically converted to cash. Provide your suspension request, with the reason for the request, with the registration form. This must be done each year when applicable.
Item 14. Select YES and provide the information requested on the form if you are a parent organization that directly supervises and controls a local, county, or area division or chapter that is also a separate legal entity.
Unless previously submitted, you MUST provide:
•
appropriate documentation to show that you directly supervise and control the
•chapter;
names and addresses of each chapter to
•be included in your registration; and separate financial statements for each chapter
3
CTS - 02
AUTHORITY 1975 PA 169 PENALTY: civil, criminal
State of Michigan
Department of Attorney General
RENEWAL SOLICITATION FORM
Full legal name of organization
All other names under which you intend to solicit
Attorney General File Number |
Telephone number |
Fax number |
|
|
|
Employer Identification Number (EIN) |
Organization email address |
Organization website |
|
|
|
All items must be answered. Provide additional sheets if necessary. If you have questions, see the instructions.
1.Organization addresses –
A. Street address of principal office. If you do not have a principal office, provide the name and address of the person having custody of the financial records.
B.Organization mailing address, if different.
C.Provide the address of all other offices in Michigan.
Yes No
2. Has there been any change in the organization's purposes? . . . . . . . . . . . . .
If yes, summarize organization's current purposes below in 50 words or less. This summary appears on our website.
3. You must designate a resident agent located in Michigan authorized to receive official mail sent to your organization.
Name ___________________________________________________________________________________________
Address (Michigan street address, not PO box) _______________________________________________________________
4. Methods of solicitation. Check all that apply.
Telephone
Internet
Personal contact
Radio / television
Special events
Newspaper/magazines
Other (specify) ____________________________
None (explain) ____________________________
Yes No
5. Has there been a change in the organization's tax status with the IRS since your last filing? . . . .
If yes, explain and document.
4
6. List all current officers and directors unless they are included on your IRS return. Mark the box to indicate whether the person is an officer, director, or both. Provide an additional sheet if necessary.
Name
Officer Director
Name
Officer
Director
|
|
|
|
Yes |
No |
7. |
Is there any officer or director who cannot be reached at the organization’s mailing address? . . . . |
|
|
||
|
If “yes,” provide the names and addresses on an additional sheet. |
|
|
|
|
|
|
|
|
||
8. |
Since your last registration form, has the organization or any of its officers, directors, employees or fundraisers: |
Yes |
No |
||
|
A. Been enjoined or otherwise prohibited by a government agency/court from soliciting? |
|
|
||
|
B. Had its solicitation registration or license denied or revoked by any jurisdiction? |
. . . . . . . . |
|
|
|
|
C. Been the subject of a proceeding regarding any license, registration, or solicitation? |
|
|
||
|
D. Entered into a voluntary agreement of compliance with a government agency or in a case |
|
|
||
|
before a court or administrative agency? |
. . . . . . . . . . . . . . . . . . . . |
|
|
|
If any "yes" box is checked, provide a complete explanation on a separate sheet.
Has the organization engaged a professional fundraiser (PFR) for Michigan
9. fundraising activity for either the financial accounting period reported in item 10 or the current period? See instructions for definition of "professional fundraiser."
A consultant is not a PFR.
Yes No
If no, go to question10.
If yes, in the chart below list all PFRs that your organization has engaged for Michigan fundraising activity. Provide additional sheets if necessary. Provide copies of contracts for each PFR listed if not already provided.
Note – You are required to verify that all PFRs under contract for Michigan campaigns are currently licensed.
Professional Fundraisers Under Contract for Michigan Campaigns
|
|
|
Is contract |
|
|
|
|
in effect |
|
|
|
Sum of all payments |
now (as you |
If no, enter |
|
|
|
||
|
|
to / retained by PFR |
complete |
date contract |
Name |
Mailing address |
during year reported |
the form)? |
ended |
|
|
|
|
|
End date:
y n
End date:
y n
End date:
y n
5
10. All organizations must report on their most recently completed financial accounting period.
Check the box to indicate the type of return filed with the IRS and follow the instructions:
Form 990 or
Form
Total program services expense: $
If your organization does not file the above returns with the IRS, check the appropriate box below to explain the reason, and follow the instructions:
Files Form
Included in IRS group return. Provide a copy of the group return. Complete 11 and 12 below.
Other reason. Explain: _______________________________________________________________
Complete 11 and 12 below.
11.Briefly describe your charitable accomplishments during the period. ____________________________________
12.Complete this section only if directed to in item 10 because your organization does not complete a Form 990,
Enter the end date of the financial accounting period reported below: |
____/_____/_____ |
REVENUE
AContributions and fundraising received B All other revenue
C Total revenue (add lines A and B)
Expenses
DCharitable program services expense
EAll remaining expenses (supporting services) F Total expense (Sum of lines D and E)
G Revenue less expenses (subtract line F from line C)
Balance Sheet
HTotal assets at end of fiscal period I Liabilities at end of fiscal period
J Net assets (subtract line I from line H)
6
13. Audited or reviewed financial statements requirement
Complete the following schedule to determine if audited or reviewed financial statements are required. If audited or reviewed financial statements are required, but they have not been prepared, see the instructions.
|
Item |
Where to Find it: |
Amount |
|
|
Form 990: Part VIII, line 1h; |
|
A. |
Contributions from IRS return |
Form |
|
|
|
Form |
|
|
|
|
|
B. |
Net income from special fundraising |
Form 990: Part VIII, line 8c; |
|
events |
Form |
|
|
C. |
Net income from gaming activities |
Form 990: Part VIII, line 9c |
|
D. |
Total contributions and fundraising |
Add lines A, B, and C |
|
|
|
|
|
|
|
|
|
E. |
Governmental grants |
Form 990: Part VIII, line 1e; |
|
Form |
|
||
|
|
|
|
|
|
grants included above on line A. |
|
|
|
|
|
F. |
|
Subtract line E from line D |
|
|
|
|
After completing the schedule:
•If line F is $550,000 or more, audited financial statements are required. They must be audited by an independent certified public accountant and prepared in accordance with generally accepted accounting principles.
•If line F is greater than $300,000, but not greater than $550,000, financial statements either reviewed or audited by a certified public accountant are required.
Yes No
14. Do you have chapters in Michigan that are to be included in the solicitation registration?
Tip: If you have offices in Michigan with no separate reporting or filing requirements, answer “no.”
If yes, provide the following:
•a listing of the names and addresses of all Michigan chapters to be included
•a financial report for each chapter (see instructions)
•a copy of your organization's IRS group return (if applicable)
Note – if you have chapters but have not previously informed us of your intent to include them, see the instructions.
15. I certify that I am an authorized representative of the organization and that to the best of my knowledge and belief the information provided, including all accompanying documents, is true, correct, and complete. False statements are prohibited by MCL 400.288(1)(u) and MCL 400.293(2)(c) and are punishable by civil and criminal penalties.
Type or print name (must be legible): |
________________________________________________________ |
||
Title: |
|
|
Date: ______________________ |
Check here if you would like to request an automatic
THIS IS A PUBLIC RECORD, COPIES OF WHICH ARE SENT, UPON REQUEST, TO ANY INTERESTED PERSON.
7
CHECKLIST:
Have all parts of the form been fully completed unless instructed otherwise?
Have you provided the name and Michigan street address of a resident agent in item 3? Is a list of the officers and directors provided or included with the IRS return?
Have you provided a complete IRS 990,
If you file Form
If you file Form
If audited or reviewed financial statements are required, are they provided? If not, have you requested a conditional registration or
Are the Form 990 and financial statements prepared for the same reporting period?
Have you submitted contracts and addenda to contracts with professional fundraisers that have not been previously submitted?
Have you typed or printed your name, date, and title in Item 15 to certify the form?
If you are requesting a
Revised |
8 |
2/20/2020
File Breakdown
| Fact Name | Description |
|---|---|
| Governing Law | The Michigan CTS-02 form is governed by the Charitable Organizations and Solicitations Act (COSA), specifically MCL 400.271 et seq. |
| Purpose | This form is used by charitable organizations to renew their solicitation registration in Michigan. |
| Eligibility to File | Organizations must file this form if they are renewing their registration or if their previous registration has expired. |
| Who Should Not File | First-time filers or organizations exempt from registration should not use this form. |
| Registration Expiration | The solicitation registration expires 7 months after the close of the organization's fiscal year. |
| Extension Requests | Extensions must be requested in writing before the registration expires, allowing for an additional 5 months. |
| Filing Methods | Organizations can renew their registration via email, e-filing, fax, or mail. |
| No Filing Fee | There is currently no fee to register for solicitation in Michigan. |
| Required Information | Organizations must provide their legal name, contact information, and details about any changes since the last registration. |
| Professional Fundraisers | All professional fundraisers engaged for Michigan campaigns must be reported, and their contracts need to be verified for licensing. |
Guide to Using Michigan Cts 02
Filling out the Michigan Cts 02 form requires careful attention to detail. Ensure that all information is accurate and complete to avoid delays in processing. Once you have filled out the form, you can submit it through various methods such as email, e-filing, fax, or by mail. Choose the method that best suits your needs for timely submission.
- Obtain the form: Download the Michigan Cts 02 form from the Michigan Department of Attorney General's website.
- Fill in the organization name: Enter the exact legal name of your organization as it appears in your organizing documents.
- List any alternate names: If your organization operates under any other names, provide those in the designated space.
- Enter the Attorney General file number: Include your organization’s assigned file number.
- Provide contact information: Fill in your organization’s telephone number, fax number, Employer Identification Number (EIN), email address, and website.
- Complete the address section: Provide the street address of your principal office and any other addresses where your organization operates in Michigan.
- Summarize changes: If there have been changes to your organization’s purposes, summarize these in 50 words or less.
- Designate a resident agent: Name a Michigan resident agent authorized to receive official mail. Provide their street address.
- Check solicitation methods: Indicate all methods of solicitation your organization uses, such as mail, telephone, or events.
- Report tax status changes: If there has been a change in tax status with the IRS, explain and document it.
- List current officers and directors: Include names and indicate their roles as officers, directors, or both.
- Provide additional information: Answer questions regarding any legal issues faced by the organization or its officers since the last filing.
- Detail professional fundraisers: If you have engaged any professional fundraisers, list them and provide copies of contracts.
- Financial statement: Attach your most recent financial statement or IRS Form 990, 990-EZ, or 990-PF as required.
- Review and sign: Ensure all sections are completed, review for accuracy, and sign the form.
- Submit the form: Choose your preferred submission method: email, e-filing, fax, or mail.
Get Answers on Michigan Cts 02
-
What is the Michigan CTS-02 form?
The Michigan CTS-02 form is a Renewal Solicitation Form required for charitable organizations that wish to renew their solicitation registration under the Charitable Organizations and Solicitations Act (COSA). This form ensures that organizations remain compliant with state regulations while soliciting donations in Michigan.
-
Who is required to file the CTS-02 form?
Charitable organizations that are renewing their solicitation registration or whose prior registration has expired must file this form. If your registration has expired, you should also provide copies of any changes to your organizing documents, bylaws, IRS status, or charitable purposes since your last submission.
-
Who should not file the CTS-02 form?
Organizations filing for the first time to solicit in Michigan should not use the CTS-02 form. Instead, they must complete Form CTS-01. Additionally, organizations that are exempt from registration should refer to Form CTS-03, Request for Exemption.
-
What is the deadline for submitting the CTS-02 form?
Your renewal form is due 30 days before the expiration of your registration, which occurs 7 months after the close of your fiscal year. If you need an extension, it must be requested in writing before your registration expires.
-
How can I submit the CTS-02 form?
You may submit the renewal form via email, e-filing, fax, or by mail. For quicker processing, email or e-filing is recommended. If you choose to email, include the AG file number and legal name in the subject line and attach the form and required documents in PDF format.
-
What information is required on the CTS-02 form?
The form requires the organization's exact legal name, any other names under which it intends to solicit, a Michigan resident agent, and a summary of the organization's current charitable purposes. Additionally, you must provide financial statements, details of any changes in tax status, and information about professional fundraisers, if applicable.
-
What if my organization has changed its charitable purposes?
If there has been a change in your organization's purposes since the last registration, you must summarize the current purposes in 50 words or less. This summary will be added to the state database and made available on the searchable website.
-
What is the role of a resident agent?
A resident agent is a person or entity located in Michigan authorized to receive official correspondence on behalf of your organization. You cannot name your organization, the Michigan Attorney General, or the Michigan Secretary of State as your resident agent. A private individual residing in Michigan can be designated.
-
What if my organization has engaged a professional fundraiser?
If your organization has engaged a professional fundraiser (PFR) for Michigan fundraising activities, you must report this in the renewal form. You will also need to verify that the PFR is currently licensed and provide copies of contracts for each PFR listed.
-
What financial statements must be provided with the CTS-02 form?
Your organization must provide a financial statement for its most recently completed fiscal year. If you file Form 990, 990-EZ, or 990-PF with the IRS, include a copy with your renewal form. If you do not file these forms, you will need to complete specific items on the CTS-02 form to provide necessary financial information.
Common mistakes
Completing the Michigan Cts 02 form is a critical step for charitable organizations renewing their solicitation registration. However, individuals often make several common mistakes that can lead to delays or complications. Understanding these errors can help ensure a smoother process.
One frequent mistake is failing to provide the exact legal name of the organization. The name entered on the renewal form must match the name on the articles of incorporation or other organizing documents. If an organization uses any other names for solicitation, those must also be listed. Omitting this information or providing incorrect names can result in processing delays.
Another common error involves the designation of a resident agent. The form requires a Michigan resident agent to accept legal documents on behalf of the organization. Many applicants neglect to provide a valid street address for the agent, opting instead for a P.O. box, which is not acceptable. This oversight can lead to the rejection of the application.
Additionally, some organizations do not adequately summarize any changes to their charitable purposes since the last registration. The form specifically requests a concise summary in 50 words or less. Simply quoting existing documents or providing generic IRS language does not meet this requirement. A failure to provide a clear and specific summary may result in questions or delays from the reviewing office.
Finally, organizations often overlook the necessity of reporting professional fundraisers correctly. If a professional fundraiser has been engaged, the organization must provide detailed information about their contracts and verify that the fundraisers are licensed. Failing to do so can lead to complications in processing the renewal form, potentially affecting the organization’s ability to solicit funds legally.
Documents used along the form
When navigating the renewal process for charitable organizations in Michigan, it is essential to be aware of various forms and documents that complement the Michigan CTS-02 form. Each of these documents plays a critical role in ensuring compliance with state regulations and maintaining transparency. Below is a list of important forms and documents that may be required alongside the CTS-02.
- CTS-01 Form: This form is used by charitable organizations that are registering to solicit for the first time in Michigan. It provides foundational information about the organization and its intended fundraising activities.
- CTS-03 Form: Organizations that believe they qualify for an exemption from registration must complete this form. It outlines the criteria for exemption and allows organizations to formally request to be excluded from registration requirements.
- CTS-10 Campaign Financial Statement: Required for all campaigns conducted by professional fundraisers, this form details the financial activities related to fundraising efforts. It must be filed within 90 days of the campaign's conclusion.
- IRS Form 990: This form is essential for tax-exempt organizations and must be submitted to the IRS annually. It provides a comprehensive overview of the organization’s financial status, including income, expenses, and activities.
- Professional Fundraiser Contracts: If an organization engages professional fundraisers, copies of contracts must be submitted. This ensures that all fundraising activities are conducted legally and ethically.
- Audited Financial Statements: If applicable, organizations must provide audited financial statements to demonstrate financial integrity. These statements must adhere to generally accepted accounting principles.
- Verification of Professional Fundraiser Licenses: Organizations are responsible for verifying that any professional fundraisers they engage are licensed in Michigan. This documentation helps maintain compliance with state laws.
- Additional Sheets for Explanations: If any questions on the CTS-02 form require further clarification, organizations should prepare additional sheets to provide complete answers, ensuring transparency and thoroughness.
Understanding and preparing these additional documents alongside the CTS-02 form is crucial for a smooth renewal process. Timely submission of all required forms not only fosters compliance but also builds trust with stakeholders and the community. Make sure to keep all information accurate and up to date to avoid any potential delays in your registration renewal.
Similar forms
- Form CTS-01: This is the initial registration form for charitable organizations looking to solicit donations in Michigan. Unlike the CTS-02, which is for renewals, CTS-01 is used by organizations that are filing for the first time. It requires different information, such as the organization's founding documents and initial purpose.
- Form CTS-03: This form is a request for exemption from registration under the Charitable Organizations and Solicitations Act. While the CTS-02 is for organizations that are already registered and need to renew, the CTS-03 is for those that believe they qualify for an exemption.
- Form CTS-10: The Campaign Financial Statement, or CTS-10, is required for all campaigns conducted by professional fundraisers. This document provides detailed financial information about fundraising campaigns, whereas the CTS-02 focuses on the renewal of registration and organizational details.
- IRS Form 990: Organizations must submit this form to the IRS annually to report financial information. The CTS-02 requires a copy of the IRS Form 990 if applicable, linking the state renewal process to federal reporting requirements.
- Form CT-2: This form is used to report changes in an organization's structure or purpose. While the CTS-02 focuses on renewing existing registration, the CT-2 is specifically for reporting significant changes that may affect registration status.
- Form AG-1: This is the application for a license to act as a professional fundraiser in Michigan. Unlike the CTS-02, which is for charitable organizations, the AG-1 is specifically for individuals or companies seeking to raise funds on behalf of charities.
Dos and Don'ts
When filling out the Michigan CTS-02 form, it is essential to approach the task with care to ensure compliance and avoid delays. Below is a list of five things you should and shouldn't do while completing this form.
- Do provide the exact legal name of your organization as it appears on your organizing documents.
- Don't leave any sections blank. If a question does not apply, enter "0" or "N/A" as needed.
- Do summarize any changes to your charitable purposes in 50 words or less, avoiding generic IRS language.
- Don't forget to designate a Michigan resident agent with a street address for official correspondence; a P.O. box is not acceptable.
- Do verify that any professional fundraisers you engage are licensed and provide necessary documentation with your renewal form.
Following these guidelines will help ensure a smooth filing process and maintain your organization's compliance with Michigan's charitable solicitation laws.
Misconceptions
Understanding the Michigan CTS-02 form is crucial for charitable organizations seeking to renew their solicitation registration. However, several misconceptions can lead to confusion. Here are seven common misunderstandings about the form:
- First-time filers can use the CTS-02 form. This is incorrect. The CTS-02 form is specifically for organizations renewing their registration. First-time filers must use Form CTS-01.
- There is a fee to file the renewal form. Many believe that a fee is required, but currently, there is no fee associated with registering to solicit in Michigan.
- Extensions for filing are automatic. Extensions must be requested in writing before the registration expires. They are not granted automatically.
- All changes to the organization must be documented in detail. While changes should be reported, the form only requires a brief summary of current charitable purposes, limited to 50 words.
- Consultants are considered professional fundraisers. This is a misconception. Consultants who only provide advice and do not solicit funds do not need to be licensed as professional fundraisers.
- All officers and directors must be reported on the form. Only those not included on the IRS return need to be listed. This can simplify the process for many organizations.
- Financial statements are always required. Organizations may request a waiver for audited or reviewed financial statements, particularly if they have engaged an auditor and are in the process of preparing the necessary documents.
Clarifying these misconceptions can help organizations navigate the renewal process more smoothly and ensure compliance with Michigan's regulations.
Key takeaways
When filling out and using the Michigan CTS-02 form, it is essential to understand the requirements and processes involved. Here are ten key takeaways to keep in mind:
- Who Should File: Only charitable organizations renewing their solicitation registration or those with expired registrations should use this form.
- First-Time Filers: Organizations looking to solicit for the first time in Michigan must use Form CTS-01 instead of the CTS-02.
- Registration Expiration: Your solicitation registration expires seven months after the end of your fiscal year. Renewals must be submitted 30 days prior to this expiration.
- File Number: Each organization has a unique file number. This number must be included on all correspondence and forms submitted to the Attorney General’s office.
- No Fees: Currently, there are no fees associated with registering to solicit in Michigan, making it more accessible for organizations.
- Submission Methods: You can submit the renewal form via email, e-filing, fax, or mail. Email and e-filing are recommended for faster processing.
- Complete Information: Answer all questions on the form completely to avoid delays. Incomplete forms can lead to unnecessary correspondence with the office.
- Resident Agent Requirement: A Michigan resident agent must be designated for receiving official documents. This agent cannot be the organization itself or state officials.
- Professional Fundraisers: If you engage professional fundraisers, you must report their compensation and verify their licensing status.
- Financial Statements: Organizations must provide a financial statement for their most recent fiscal year. If applicable, include IRS Form 990 or other required documents.
By keeping these key points in mind, organizations can navigate the renewal process smoothly and ensure compliance with Michigan's charitable solicitation regulations.