Legislative Agenda
The co-chairs of the Michigan Nonprofit Caucus identified the following legislative items as their policy agenda for the past legislative session.Two out of the three items were passed! (SB 860 and COSA Amendments)
Exempt Volunteer Activities from Work Permit Requirements (SB 860)
The work permit requirement in the Youth Employment Standards Act does not specifically exempt volunteer activities. Therefore, those minors who perform volunteer work for charitable organizations are most likely required to obtain work permits, usually from the school where the minor is enrolled. Often charities are unaware that minors need work permits before doing volunteer work. If work permits are required by charities, it would act as a barrier to young people engaging in volunteer activities in their communities.
The Michigan Nonprofit Caucus supports eliminating this requirement by amending the definition of work to exclude volunteer activities performed for charitable organizations.
UPDATE: Great news! This legislation has passed out of both the House and Senate and was signed by the Governor!
Revisions to the Charitable Organizations and Solicitation Act (COSA) to Promote Accountability
While the Charitable Organizations and Solicitation Act (COSA) has undergone some useful changes since its original adoption in 1975, there are several changes that still need to be adopted that would be beneficial to Michigan's nonprofit community by enabling more streamlined processing of files for those charities wishing to solicit donations and more effective enforcement of standards to protect Michigan charities from undue pressures from the few who are "charities" in name only.
The Michigan Nonprofit Caucus has identified the following revisions to COSA as their legislative priorities for this legislative session:
- Increasing the filing threshold from $8,000 to $25,000;
- Changing the processing from a licensing procedure to registration, clarifying that a charity is registered upon filing of the proper information, unless notified of deficiencies; and
- More effective enforcement provisions to protect the nonprofit community from undue competition from fraudulent fundraising and questionable activities of those organizations that do not operate for the benefit of their constituents.
UPDATE: This legislation was signed by Governor Granholm on December 22, and took effect on March 30.
Clarify the Sales Tax Exemption for Fundraising Purposes
Currently, nonprofits must pay sales tax on items used to raise funds for their organization, since it is not a direct program expense.
The Michigan Nonprofit Caucus supports amending the language of the General Sales Tax Act to clarify that products purchased by 501(c)(3) and (c)(4) organizations to carry out administrative or fundraising activities would clearly be exempt from sales tax.
Update: This legislation did not make to the legislature last year for a vote. This will be a priority of the 2011 Nonprofit Caucus.
Legislative Agenda 2012
Clarifying the Sales Tax Exemption for Fundraising Purposes
Currently, nonprofits must pay sales tax on items used to raise funds for their organization, since it is not a direct program expense. The Caucus supports amending the language of the General Sales Tax Act to clarify that products purchased by 501(c)(3) and (c)(4) organizations to carry out administrative or fundraising activities would clearly be exempt from sales tax.
Helping Taxpayers and Nonprofits by Simplifying Government Contracting
According to the Urban Institute, Michigan ranks 8th worst in the nation for the most problems with government failing to cover the full cost of government-contracted services with nonprofits. To streamline the process and ensure nonprofits can effectively and sustainably partner with government, Michigan should create a Nonprofit One Stop, which would provide grant and contracting opportunities and a Nonprofit Ombudsman to handle disputes. This and other measures would ensure that individuals needing services get them when they need them and that taxpayers receive full value for their investments.
Preserve the Charitable Tax Exempt Status of Nonprofits
Nonprofits have charitable tax exempt status in Michigan because of our belief in the many tangible and intangible benefits that charitable nonprofits provide to society, including reducing the burdens of governments and bringing vitality to our communities. As other states seek ways to take money away from nonprofit missions, the State of Michigan should preserve the special role that charitable nonprofits provide by barring local municipalities from charging taxes or fees to nonprofits based on their charitable tax-exempt status.
Creating the Office of Nonprofit Solutions
Michigan's nonprofit sector employs 10 percent of the state's workforce and generates $108 billion in annual economic activity, yet there is not a single legislative committee or executive official tasked with looking at the health of this sector. In order to accommodate the sector upon which so many citizens, local communities, and the government rely, the Caucus recommends the creation of the Office of Nonprofit Solutions. Its functions would include a Michigan Nonprofit Council, an Interagency Working Group, and Data Collection and Research.
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