TLDR
Michigan charitable organizations must navigate two separate compliance tracks: charitable solicitations licensing through the Michigan Attorney General's Charitable Trust Section, and corporate annual reporting through the Department of Licensing and Regulatory Affairs (LARA). A registration can be compliant with one agency and deficient with the other. The charitable solicitations annual report is due within 7 months of fiscal year end. Michigan's audit threshold is $500,000 in gross revenue. Organizations frequently let LARA's corporate annual report lapse while maintaining the AG license, triggering dissolution without losing solicitation authority — and then discovering the problem only when attempting a grant application.
Michigan Charitable Solicitations License: Nonprofit Guide
Michigan’s compliance framework for nonprofits involves two agencies that operate entirely independently of each other, track different things, and can each dissolve or revoke an organization’s authority without the other knowing. Most organizations know this in theory. The ones that run into problems are the ones that assume current status with one agency means current status with both.
The two-agency structure
Michigan nonprofit compliance involves:
Attorney General — Charitable Trust Section Administers MCL 400.271 et seq. (the Charitable Organizations and Solicitations Act). Issues and maintains charitable solicitations licenses. Receives annual financial reports. Investigates charitable fraud and misuse. The AG license is what authorizes the organization to solicit contributions.
LARA — Corporations Division Administers nonprofit corporate existence under the Michigan Nonprofit Corporation Act (MCL 450.2101 et seq.). Processes annual reports and dissolution proceedings. The LARA annual report maintains the organization’s legal corporate existence. A lapsed LARA annual report results in administrative dissolution.
A nonprofit can have an active AG license and a dissolved LARA status. This combination is invisible in day-to-day operations but surfaces immediately when:
- A grant funder requests a Certificate of Good Standing
- The organization attempts a real estate transaction
- A legal dispute requires proof of corporate existence
Who must obtain a Michigan charitable solicitations license
Any charitable organization that solicits contributions from Michigan residents must be licensed with the AG Charitable Trust Section before soliciting. This covers:
- Michigan-incorporated nonprofits of all sizes
- Out-of-state organizations soliciting Michigan residents by any means
- Organizations conducting in-person fundraising events in Michigan
- Organizations using online platforms accessible to Michigan donors
Exemptions from licensing
Michigan exempts the following under MCL 400.272:
| Category | Conditions |
|---|---|
| Religious organizations | Per statute |
| Educational institutions | Soliciting among students, faculty, or alumni |
| Hospitals | Licensed in Michigan |
| Small organizations | Revenue under $25,000 AND only unpaid solicitors |
| Political organizations | Registered with election authorities |
| Veterans organizations | Soliciting among members |
| Membership organizations | Soliciting solely from dues-paying members |
The small-organization exemption — $25,000 and unpaid solicitors — requires both conditions simultaneously. A $20,000-revenue organization that hires a part-time development coordinator does not qualify.
Annual report deadline: 7 months after fiscal year end
| Fiscal Year End | Michigan Annual Report Due |
|---|---|
| December 31 | July 31 |
| March 31 | October 31 |
| June 30 | January 31 |
| September 30 | April 30 |
The 7-month window is more generous than Virginia’s 90 days or Ohio’s 120 days, but the $25-per-day late fee (maximum $1,000) creates significant financial pressure for organizations that miss the July 31 deadline by any meaningful margin.
Fee schedule
Michigan’s annual license fees are based on gross revenue:
| Gross Revenue | Annual Fee |
|---|---|
| Under $25,000 | $0 |
| $25,000 – $99,999 | $25 |
| $100,000 – $249,999 | $75 |
| $250,000 – $499,999 | $125 |
| $500,000 – $999,999 | $150 |
| $1,000,000 – $4,999,999 | $175 |
| $5,000,000 and above | $200 |
Initial registration fees may differ from annual renewal fees. Contact the Charitable Trust Section for current initial registration fee schedules.
Audit and financial statement requirements
| Gross Revenue | Required Financial Statement |
|---|---|
| Under $250,000 | Internally prepared statement |
| $250,000 – $499,999 | Financial statement (CPA not required) |
| $500,000 and above | CPA-audited financial statements (GAAS) |
Michigan’s $500,000 audit threshold is the same as Ohio’s, New Jersey’s, and Connecticut’s. Pennsylvania’s threshold is lower ($300,000). Organizations managing multi-state registrations in the Great Lakes region often find their CPA engagement driven by the most restrictive combination of state and federal thresholds in the portfolio.
LARA corporate annual report: separate obligation
Michigan nonprofit corporations must file an annual report with LARA’s Corporations Division. Key details:
- Due date: May 15 each year (fixed calendar date, not fiscal-year dependent)
- Fee: $20 for nonprofit corporations
- Consequence of lapse: Administrative dissolution; restoration requires reinstatement application and payment of outstanding fees
The LARA deadline is fixed — May 15 every year regardless of the organization’s fiscal year. This means it lands within the organization’s window for completing the AG annual report (July 31 for calendar-year filers) and requires separate tracking.
Professional solicitor requirements
Professional solicitors in Michigan must register independently with the AG Charitable Trust Section. Requirements:
- Registration before conducting any campaign
- Surety bond requirement applies
- Contract with charitable organization must be filed before solicitation begins
- Disclosure in the charitable organization’s annual report
The charitable organization is responsible for verifying solicitor registration and contract compliance. Engaging an unregistered solicitor can result in enforcement action against both the solicitor and the organization.
Required attachments for annual report
- Completed annual report form with authorized officer signature
- Form 990, 990-EZ, or 990-PF (complete with all schedules)
- Audited financial statements (gross revenue $500,000+)
- Financial statement (gross revenue $250,000-$499,999)
- Professional solicitor disclosures and contract copies
- List of current officers and directors
Common rejection reasons and enforcement triggers
- Missing Form 990 — the most common single deficiency
- Wrong financial statement tier — submitting an internal statement when audit is required
- Late filing — $25/day late fee accrues immediately after the deadline
- Missing professional solicitor disclosures — frequently overlooked for organizations using fundraising consultants
- Lapsed LARA status not addressed — organizations that try to renew the AG license while LARA shows dissolved status create a compounded compliance problem
Multi-state context
Michigan’s July 31 deadline for calendar-year filers lands after Ohio’s May 15 and before Illinois’s multi-variant deadline. Great Lakes nonprofits soliciting across Michigan, Ohio, and Illinois should use Ohio’s May 15 deadline as the anchor for the regional compliance calendar, then work through Michigan’s July 31, and finally coordinate with Illinois’s AG990-IL timeline.
How GrantPipe helps
GrantPipe tracks both Michigan’s AG charitable solicitations annual report and the LARA corporate annual report as separate deadline items — because they are separate, and failing to track them independently is how organizations end up dissolved with an active license. The compliance calendar auto-calculates Michigan’s 7-month deadline and flags the May 15 LARA obligation alongside federal grant reporting and restricted-fund workflow. Start with a free trial to build a Michigan compliance record that treats both agencies as the independent obligations they are.
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- Charitable Trust Section
- The division of the Michigan Attorney General's office that administers charitable solicitations licensing and oversight under MCL 400.271 et seq.
DEFINITION
- LARA
- Michigan Department of Licensing and Regulatory Affairs. Administers the corporations division, which processes nonprofit corporate annual reports and dissolution proceedings.
DEFINITION
- MCL 400.271 et seq.
- Michigan's Charitable Organizations and Solicitations Act. Sets registration, annual reporting, and fee requirements for charitable organizations soliciting in Michigan.
DEFINITION
- Gross revenue
- Total income from all sources during the fiscal year, used to determine Michigan's license fee tier and the audit requirement threshold.
DEFINITION
- Professional solicitor
- A person or entity paid to solicit contributions on behalf of a charitable organization in Michigan. Must register separately with the Attorney General's Charitable Trust Section before conducting any campaign.
DEFINITION
Q&A
Can a Michigan nonprofit have its charitable solicitations license in good standing while LARA has administratively dissolved the corporation?
Yes, and this is the most common dual-agency compliance failure in Michigan. The AG's Charitable Trust Section and LARA operate independently. A nonprofit can pay its annual report fee to the AG on time while letting the LARA corporate annual report lapse for years, resulting in administrative dissolution. The organization retains its solicitation license but has no valid corporate existence — a problem that emerges most visibly when grant funders request a Certificate of Good Standing from LARA.
Q&A
What level of financial statement does Michigan require for organizations between $250,000 and $499,999 in gross revenue?
Michigan requires a financial statement in this range but does not mandate CPA attestation — an internally prepared statement is acceptable. Some funders and grant agreements require CPA involvement at lower thresholds, so organizations should check grant conditions independent of the state registration requirement.
Q&A
Does Michigan require registration for online fundraising campaigns?
Yes. Michigan's Charitable Organizations and Solicitations Act applies to solicitations directed at Michigan residents regardless of medium. An organization headquartered in another state that runs an online campaign targeting Michigan donors, or that accepts donations through a platform accessible to Michigan residents, is soliciting in Michigan and must be licensed.
Frequently asked