Free Michigan Cts 02 Template Prepare Document Here

Free Michigan Cts 02 Template

The Michigan CTS 02 form, governed by MCL 400.271 et seq., is a crucial document for charitable organizations operating within the state that are seeking to renew their solicitation registration or update their registration details after expiration. It serves as a Renewal Solicitation Form under the Charitable Organizations and Solicitations Act (COSA), specifying instructions for extensions, necessary information about the use of file numbers, fee waivers, and directions on submission methods. Organizations filing for the first time or those exempt from registration have distinct forms, illustrating the tailored approach Michigan takes towards charitable solicitations. For those ready to renew their registration, please click the button below to proceed with the CTS 02 form.

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Understanding the intricacies of the Michigan CTS-02 form is crucial for charitable organizations operating within the state. Administered by the Department of Attorney General, this form plays a critical role in the Renewal Solicitation process under the Charitable Organizations and Solicitations Act (COSA). Charities looking to renew their registration for solicitation or whose prior registration has expired are mandated to utilize this form. It’s essential for these organizations to note the necessity of submitting any amendments to their organizing documents, including changes in bylaws, IRS status, or charitable purposes since their last submission. Instructions outlined within the form stress the timely renewal of solicitations registration, which expires seven months post the fiscal year's closure. Charitable groups are given a leeway of 30 days before the registration's expiration to file the renewal, with an option for a written extension request. Noteworthy is the fact that new organizations aiming to solicit in Michigan or those exempt from registration are directed towards different forms. This comprehensive approach ensures that the solicitation activities remain transparent, ethical, and within the legal framework set by the state, thereby fostering an environment of trust between the public and charitable entities. Additionally, the form delicates specifications regarding the engagement and compensation of professional fundraisers, financial statement requirements, and the stipulation for organizations with a national presence overseeing local, county, or area divisions.

Sample - Michigan Cts 02 Form

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 CTS-03, Request for Exemption.

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 E-File or Mail Your Forms.

Mail - Send the Renewal Solicitation Form to:

Department of Attorney General Charitable Trust Section

PO Box 30214 Lansing, MI 48909

Telephone: (517) 335-7571

Fax: (517) 241-7074

Email: ct_email@michigan.gov

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

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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 CTS-10, are required for all campaigns conducted by a PFR with which you have contracted, except those who are solely consultants. The Campaign Financial Statement will be filed by the PFR, but you will be required to provide additional campaign expense information and sign the form. Campaign financial statements are due within 90 days of the conclusion of any campaign. If the campaign lasts more than a year, a Campaign Financial Statement must be filed annually.

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, 990-EZ, or 990-PF with the IRS, a copy must be provided with the renewal form. Organizations that do not complete a Form 990, 990-EZ, or 990- PF should complete items 11 and 12 on the form.

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 990-EZ, do not provide a copy of Schedule B, Schedule of Contributors.

Organizations that file Form 990-EZ. Note – all expenses not in Item 10 as program services will be entered into our database and provided to the public as “Supporting services.”

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.

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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 one-time waiver of the reviewed or audited financial statements requirement. In your request, specify the fiscal year for which the waiver is requested and state that the necessary financial statements will be provided in all future years in which reviewed or audited financial statements are required. If you have already received a waiver of the financial statements requirement for a prior year, engage an auditor and see below to request a conditional registration.

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 non-cash. However, suspension of the requirement is unlikely if the organization’s cash contributions exceed the audited or reviewed financial statements thresholds, or if donated non-cash items are

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

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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.

Mail

Telephone

Internet

Personal contact

Radio / television

Email

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.

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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

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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 990-EZ - Provide a copy of the return. Do not include Schedule B. Go to item 13 below.

Form 990-PF - Provide a copy of the Form 990-PF. Enter the amount the organization spent directly on its charitable program in the space below. Complete item 11 and go to 13.

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 990-N. Complete 11 and 12 below, then go to 14.

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, 990-EZ, or 990-PF. Complete all lines of the following schedules. You must enter the end date of the accounting period being reported. Enter “0” or “none” where appropriate or if you had no financial activity in the period.

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)

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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 990-EZ: line 1;

 

 

 

Form 990-PF: line 1

 

 

 

 

 

B.

Net income from special fundraising

Form 990: Part VIII, line 8c;

 

events

Form 990-EZ: line 6d

 

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 990-EZ: enter governmental

 

 

 

 

 

 

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 5-month extension to your expiration date (this will not be reflected in your registration document, but can be verified online on our website at michigan.gov/charity).

THIS IS A PUBLIC RECORD, COPIES OF WHICH ARE SENT, UPON REQUEST, TO ANY INTERESTED PERSON.

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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, 990-EZ, OR 990-PF?

If you file Form 990-PF, did you complete item 11?

If you file Form 990-N, did you complete items 11 and 12?

If audited or reviewed financial statements are required, are they provided? If not, have you requested a conditional registration or one-time waiver? (See instructions.)

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 5-month extension, have you checked the box below item 15?

Revised

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2/20/2020

File Details

Fact Number Description
1 The CTS-02 form is mandated by the Michigan Compiled Laws (MCL 400.271 et seq.)
2 Filing this form incurs no charge.
3 This form is specific to charitable organizations seeking to renew their solicitation registration.
4 Organizations filing for the first time or those exempt from registration should not use this form.
5 The form must be submitted 30 days before the expiration of the registration, which is 7 months after the fiscal year-end.
6 Extensions for filing can be granted with a written request submitted before the expiration of the current registration.
7 Submit changes to organizing documents, IRS status, or charitable purposes if your previous registration has expired.
8 Registration renewal can be processed via email, efiling, fax, or mail.
9 Charitable organizations are required to report engagement and compensation of all professional fundraisers.
10 The form serves dual purposes: ensuring compliance with Michigan laws and updating the Michigan Department of Attorney General about any information changes.

Michigan Cts 02 - Usage Steps

Upon deciding to renew a solicitation registration in Michigan, charitable organizations will need to complete the Renewal Solicitation Form (CTS-02). This process is critical for organizations that aim to continue their solicitation activities within the state seamlessly. A precise completion of this form ensures compliance with the Charitable Organizations and Solicitations Act, helping to prevent any disruptions in the organization's fundraising efforts. Below are the detailed steps to guide you through filling out the form correctly.

  1. Locate the Attorney General File Number for your organization. This number is required and should be included on the form and in the subject line of your submission email, if applicable.
  2. Enter the full legal name of the organization as registered, including any other names under which the organization intends to solicit.
  3. Provide the organization's addresses, including the principal office street address (or the name and address of the person with custody of financial records), a mailing address if different, and addresses of any other Michigan offices.
  4. Summarize the organization's current charitable purposes in 50 words or less in item 2, if they have changed since the last submission. This summarization is essential for updating the database and website information.
  5. Name a Michigan resident agent authorized to receive official mail and any process issued by a court. A street address in Michigan is necessary; P.O. boxes are not accepted.
  6. Check off the methods of solicitation used by the organization.
  7. If there has been a change in the organization's tax status with the IRS since the last filing, explain and document this change.
  8. List all current officers and directors, marking whether they serve as an officer, a director, or both. If already included on your IRS return, this step is not needed.
  9. Answer questions regarding any prohibitions, denials, or proceedings against the organization or its principals related to solicitation activities. Provide explanations on a separate sheet for any affirmative responses.
  10. Determine if a professional fundraiser (PFR) has been engaged for Michigan fundraising activities in the reported financial accounting period or the current period. If yes, list all engaged PFRs, provide the sum of all payments to/retained by each PFR during the reported year, and attach copies of contracts if not previously submitted.
  11. Attach a financial statement for the most recently completed fiscal year. Organizations filing an IRS Form 990, 990-EZ, or 990-PF should provide a copy, excluding Schedule B if filing Form 990 or 990-EZ. If these forms are not applicable, complete the specific items listed for financial information on the CTS-02 form.
  12. Briefly describe the organization's activities or achievements during the fiscal period in item 11. Do not simply restate the organization's charitable purpose.
  13. If audited or reviewed financial statements have been prepared for the year being reported, provide a copy. Complete the schedule to determine if these statements will be required. If necessary, specify any request for a waiver, conditional registration, or suspension of this requirement.
  14. If acting as a parent organization that controls local, county, or area divisions or chapters, select "YES" and provide requested information, including documentation of control, names and addresses of chapters, and separate financial statements for each.

After thoroughly completing the form and attaching all required documents, choose your submission method: email, efiling, fax, or mail, based on your preference for processing speed. Ensure to check the Michigan Attorney General’s website for the correct email address, fax number, or mailing address for submission. Remember to verify the receipt of your filing by searching for the organization at the provided website.

Learn More on This Form

Who needs to file the Michigan CTS 02 form?

Charitable organizations that are renewing their solicitation registration in Michigan or those whose prior registration has expired must file this form. It's important for these organizations to include any changes to their organizing documents, IRS status, or charitable purposes since their last submission.

Who should not file the Michigan CTS 02 form?

Charitable organizations that are filing for the first time to solicit in Michigan should not use this form. Instead, they need Form CTS-01. Organizations that are exempt from registration must see Form CTS-03, Request for Exemption, instead of filing the CTS 02 form.

What is the deadline for filing the Michigan CTS 02 renewal form?

The renewal form is due 30 days before the expiration of your current registration. This expiration occurs 7 months after the close of your fiscal year. If needed, organizations can request a written extension before the registration expires, which grants an additional 5 months.

Is there a fee to file the Michigan CTS 02 form?

As of the latest information available, there is no fee required to register to solicit as a charitable organization in Michigan.

How can the Michigan CTS 02 form be submitted?

You may submit the renewal form through email, e-filing, fax, or mail. For efficient processing, it’s recommended to use email or e-filing options.

  • Email: Include your AG file number and legal name in the subject line, attaching the form and required documents in PDF format.
  • Efile: Visit the Attorney General’s website for instructions on how to e-file.
  • Mail: Direct the form to the Department of Attorney General Charitable Trust Section at their Lansing PO Box.

How can an organization verify their filing has been received?

Organizations can search for their status at the Michigan Attorney General's charity search webpage. The search results will indicate if your application/registration is pending.

What changes need to be reported on the Michigan CTS 02 form?

Any changes in the charitable purposes or activities since the last registration must be summarized in 50 words or less on the renewal form. This includes not just quoting the articles of incorporation or standard IRS language but summarizing the current purposes or activities.

What is required for the professional fundraiser (PFR) section of the Michigan CTS 02 form?

All professional fundraisers engaged in Michigan campaigns must be reported in the schedule. This includes fees, reimbursements, or other payments related to their services. If you have contracted with a consultant you don’t need a PFR license but must still provide a copy of the contract if requested for review.

Are financial statements required with the Michigan CTS 02 renewal form?

A financial statement for the most recently completed fiscal year is mandatory. If the organization files IRS Form 990, 990-EZ, or 990-PF, a copy must be included. Audited or reviewed financial statements may be required depending on the size and scope of the organization. Request for a one-time waiver or conditional registration can be made if these are not prepared.

What if the charitable organization operates under multiple names?

The exact legal name must be used on the renewal form. If the organization solicits under any other names, each should be listed in the designated section of the form to ensure clarity and compliance.

Common mistakes

Filling out the Michigan CTS 02 form accurately is crucial for charitable organizations looking to renew their solicitation registration. However, several common mistakes can impede this process. Understanding these errors can help in ensuring the submission is handled smoothly and without unnecessary delay.

One significant error is not providing the complete and exact legal name of the organization as currently listed on its articles of incorporation or other organizing documents. Organizations often mistakenly use an abbreviated name or a variation not officially recognized, leading to confusion and potential delays in processing the renewal.

Another common oversight is failing to update the organization's current charitable purposes or activities if they have changed since the last submission. The form explicitly asks for a summary of the purposes if any modifications have occurred. Succinctly articulating any shifts in the organization's focus or activities within the 50-word limit is not just a requirement; it's an opportunity to keep the state updated on the charity's evolution.

  1. Using a P.O. box as the address for the Michigan resident agent instead of a street address. The requirement for a physical address ensures there's a reliable location for legal correspondence, and overlooking this detail can invalidate the application.
  2. Omitting to report or incorrectly reporting engagements and compensation with professional fundraisers. This includes both failing to list all engaged PFRs and mischaracterizing consulting contracts as not requiring disclosure. The details around these engagements are critical for financial transparency and regulatory compliance.
  3. Inadequately providing financial documentation, particularly the omission of the most recent financial statements or IRS Form 990 filings. Moreover, not respecting the specifications around audited or reviewed financial statements when applicable can lead to misunderstandings about the financial health and operational integrity of the charitable organization.

The key to avoiding these and other mistakes lies in thoroughly reviewing the form's instructions and ensuring all provided information is accurate and up-to-date. Charitable organizations should pay special attention to changes in their operations, governance, or financial situation since their last renewal and reflect these changes correctly on the form. Additionally, seeking clarification on ambiguous items directly from the Department of Attorney General can prevent errors before submission. This proactive approach not only smoothens the registration process but also reflects well on the organization's commitment to transparency and compliance.

Mistakes on the Michigan CTS 02 form can be more than just administrative hurdles; they can significantly delay the renewal process, impacting an organization's ability to fundraise and carry out its mission. By steering clear of these common pitfalls, charitable organizations can ensure that their focus remains on their invaluable service to the community.

Documents used along the form

Understanding the importance of thorough compliance with Michigan's regulatory requirements for charitable organizations is paramount. In the realm of solicitation and renewal registration, the need for clarity on accompanying documentation cannot be overstated. For entities navigating this landscape, especially those required to submit the Michigan CTS-02 form, being well-informed about other relevant documents is vital. These additional forms ensure that your organization not only adheres to the letter of the law but also maintains its status as a trustworthy and compliant entity. Below is a list of documents often associated with the process, each serving a unique but complementary purpose to the Michigan CTS-02 form.

  • Form CTS-01: This is the initial registration form for charitable organizations intending to solicit in Michigan for the first time. It gathers basic organizational details and solicitation plans.
  • Form CTS-03: Request for Exemption form is designed for organizations that believe they fall outside the requirements for registration under certain criteria set forth by Michigan law.
  • Form CTS-10: The Campaign Financial Statement is crucial for detailing financial activities related to solicitation campaigns, specifically those involving a professional fundraiser. It requires a comprehensive breakdown of received contributions and expenses.
  • Form 990, 990-EZ, or 990-PF: These IRS forms are essential for nonprofits to report their financial information. Depending on the organization's size and type, one of these forms will be required to complement state filings.
  • Change of Information Form: Any time there is a change in an organization's address, contact information, officers, or legal representatives, this form should be submitted to keep records current.
  • Professional Fundraiser (PFR) Contract: Copies of contracts between the charitable organization and any engaged professional fundraisers must be provided, highlighting terms, scope of work, and remuneration.
  • Voluntary Agreement of Compliance: If an organization has previously entered into an agreement with a government entity to correct or improve certain practices, a copy of this agreement may be required.
  • Audited Financial Statements: For larger organizations, audited financial statements prepared by an independent auditor might be necessary, providing a clear picture of the organization's financial health and compliance with accounting principles.
  • IRS Letter of Determination: This is a critical document for all nonprofit organizations, serving as proof of tax-exempt status under the IRS code, which may need to be provided or updated.
  • Board of Directors Listing: A current list of all officers and directors, including their contact information, ensures transparency and accountability, allowing for proper communication and oversight.

These documents collectively support and enhance the renewal process, ensuring that charitable organizations remain compliant and transparent in their operations. It's worth noting that the specifics of each form could be subject to change based on legislative updates or modifications in state policy. Therefore, staying informed and consulting with the Department of Attorney General's office or a legal professional specializing in charitable solicitations in Michigan is advisable. Navigating these requirements with diligence and foresight can significantly contribute to the seamless continuation of your charitable activities within the state.

Similar forms

The Michigan CTS 02 form shares several features with other regulatory documents aimed at governing the activities of charitable organizations. These similarities lie primarily in the objectives these documents serve, such as ensuring transparency, setting standards for solicitation practices, and protecting both the interests of the public and the integrity of the charities themselves. Below, two forms with similarities to the Michigan CTS 02 form are outlined: the IRS Form 990 and the Unified Registration Statement (URS).

IRS Form 990 is a comprehensive federal form that tax-exempt organizations must file annually with the Internal Revenue Service (IRS) in the United States. Similar to the CTS 02 form, it requires detailed information about the organization's operations, including financial statements, activities, and changes in organizational structure or purposes. Both forms serve as a disclosure to the public and regulatory agencies, offering a snapshot of the organization's financial health, governance, and compliance with legal standards. They reflect an overarching goal of accountability, aiming to ensure that charitable organizations operate in alignment with their stated missions and the broader public interest. However, while the CTS 02 form is focused on the solicitation of contributions within Michigan, IRS Form 990 provides a broader overview of the organization's financial activities, governance, and compliance on a national level.

The Unified Registration Statement (URS) is another document with similarities to the Michigan CTS 02 form. Developed as an effort to streamline the charity registration process across multiple states, the URS is essentially a multi-state form that charitable organizations can use to register or renew their solicitation activities in several states simultaneously. Like the CTS 02 form, the URS collects detailed information about the charity's structure, governance, solicitation practices, and financial status. Both aim to simplify the regulatory requirements for charities, making it easier for them to comply with state laws pertaining to solicitation and fundraising. Where the CTS 02 form is specific to Michigan, the URS's multi-state approach reduces the administrative burden on charities operating in multiple jurisdictions. Despite this, the specificity of state laws means that additional state-specific documents or supplements, like the CTS 02 form, may still be required.

Dos and Don'ts

When filling out the Michigan CTS-02 form, there are several dos and don'ts to keep in mind to ensure your submission is accepted and processed smoothly. Here’s a concise guide:

Do:

  1. Provide the exact legal name of the organization as it appears on your articles of incorporation or other organizing documents.
  2. Check all methods of solicitation your organization employs from the options given in the form.
  3. Designate a resident agent in Michigan with a street address (no P.O. boxes) for the acceptance of legal documents.
  4. Include all required attachments, such as copies of IRS Form 990 and any relevant changes in your organizing documents, bylaws, or charitable purposes.
  5. Verify the licensing status of any professional fundraisers (PFRs) you are currently engaged with for Michigan campaigns.

Don't:

  1. Leave any section incomplete. If a section does not apply, clearly mark it as “N/A” or provide a brief explanation if needed.
  2. Forget to list all names under which your organization intends to solicit if you use names other than your legal name.
  3. Omit any changes to your organization's purposes, activities, or IRS tax status since your last filing.
  4. Provide a P.O. Box as the address for your resident agent. A physical street address in Michigan is required.
  5. Delay in requesting an extension if you need more time to file. Requests for extensions must be made in writing before your registration expires.

Misconceptions

When it comes to navigating the complexities of charitable solicitations in Michigan, the Michigan CTS 02 form plays a crucial role for many organizations. However, there are several misconceptions surrounding this form that can lead to confusion. Understanding the truth behind these misconceptions can help ensure that charitable organizations comply with the law while carrying out their vital work.

  • The form is only for charities based in Michigan: Any charitable organization soliciting in Michigan, regardless of where it is based, must file the CTS 02 form if they are renewing their registration.

  • First-time registrants need to file this form: This form is specifically for charities renewing their registration. First-time registrants must use Form CTS-01 instead.

  • There’s a fee to renew: As of the current guidance, there is no fee to submit a renewal registration for soliciting in Michigan.

  • Email is the only way to renew: While email might be the quickest option, organizations can also renew via efiling, fax, or traditional mail.

  • Extending the registration is complex: If needed, charities can request an extension in writing before the current registration expires to gain an additional 5 months.

  • It’s okay to leave some parts of the form blank: The form and instructions emphasize that all questions must be answered completely to avoid delays.

  • Professional fundraisers are the same as consultants: The form differentiates consultants from professional fundraisers, with specific requirements for each.

  • All fundraising activities need to be listed on the form: While details about professional fundraisers must be provided, the form does not require a list of all fundraising activities.

  • A P.O. Box is an acceptable address for the resident agent: Michigan law requires a street address in Michigan for the organization’s resident agent to accept official mail.

  • Schedule B of the IRS Form 990 should be attached with the renewal: Organizations that file Form 990 or 990-EZ are instructed not to include Schedule B with their submission.

Properly understanding and complying with the requirements of the Michigan CTS 02 form is essential for charitable organizations. Dispelling these misconceptions ensures organizations can focus on their important work without administrative setbacks.

Key takeaways

When it comes to filling out and utilizing the Michigan CTS-02 form for charitable organizations looking to renew their solicitation registration, there are several key points to be mindful of. This guide walks through crucial takeaways to ensure that the process is as smooth and error-free as possible.

  • Renewal Timeline and Extensions: Charitable organizations must renew their solicitation registration 30 days before it expires, which is 7 months after the fiscal year's end. If more time is needed, a written request for an extension must be submitted before the expiration date. This can extend the deadline by an additional 5 months, providing organizations ample time to prepare and submit their renewal forms and necessary documentation.
  • Filing Methods: The Michigan Department of Attorney General offers multiple channels for submitting the CTS-02 form, including email, efiling, fax, or mail. To expedite the process, utilizing email or efiling is advised. Regardless of the method chosen, it’s important to include the organization's legal name and AG file number in the communication, ensuring that the renewal is processed efficiently and correctly linked to the existing registration.
  • Professional Fundraiser (PFR) Information: If your organization works with professional fundraisers, detailed information about these arrangements must be reported on the renewal form. This includes verifying the license of any PFR hired for fundraising activities in Michigan and providing copies of contracts within 10 days of signing. Additionally, financial dealings with PFRs, such as all payments made or retained by them during the reported year, must be clearly outlined.
  • Financial Reporting Requirements: Organizations are required to submit a financial statement for the most recently completed fiscal year. This can be a Form 990, 990-EZ, or 990-PF as filed with the IRS, minus Schedule B for those filing Forms 990 or 990-EZ. If audited or reviewed financial statements have been prepared, they must be submitted with the renewal form; otherwise, conditions to fulfill this requirement or requests for waivers must be clearly communicated. For organizations not following standard IRS forms, specific schedules on the CTS-02 form must be completed to detail financial activities.

Ensuring diligent attention to these details will not only streamline the renewal process but also help in maintaining compliance with Michigan regulations for charitable solicitations. It’s crucial for organizations to regularly review their status, document changes accurately, and stay informed about filing deadlines to avoid any disruptions in their solicitation activities.

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