Article Guide
The Michigan CTS-02 form serves as a crucial tool for charitable organizations seeking to renew their solicitation registration under the Charitable Organizations and Solicitations Act (COSA). This form is specifically designed for organizations that are renewing their registration or whose previous registration has expired. It is essential to understand that if an organization is filing for the first time, it must use a different form, the CTS-01. The CTS-02 requires organizations to provide detailed information, including any changes to their organizing documents or IRS status since their last submission. It is important to submit this renewal form 30 days before the expiration date of the current registration, which typically occurs seven months after the close of the organization’s fiscal year. Notably, there is currently no fee associated with the renewal process. Organizations must ensure that all questions on the form are answered completely to avoid delays. Additionally, the form mandates the designation of a Michigan resident agent for legal correspondence and requires a financial statement for the most recently completed fiscal year. Engaging professional fundraisers also entails specific reporting requirements, ensuring transparency in fundraising activities. Overall, the CTS-02 form is a vital component in maintaining compliance and transparency for charitable organizations operating in Michigan.
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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
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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
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.
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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
•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
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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 |
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Employer Identification Number (EIN) |
Organization email address |
Organization website |
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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.
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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
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Yes |
No |
7. |
Is there any officer or director who cannot be reached at the organization’s mailing address? . . . . |
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If “yes,” provide the names and addresses on an additional sheet. |
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8. |
Since your last registration form, has the organization or any of its officers, directors, employees or fundraisers: |
Yes |
No |
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A. Been enjoined or otherwise prohibited by a government agency/court from soliciting? |
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B. Had its solicitation registration or license denied or revoked by any jurisdiction? |
. . . . . . . . |
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C. Been the subject of a proceeding regarding any license, registration, or solicitation? |
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D. Entered into a voluntary agreement of compliance with a government agency or in a case |
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before a court or administrative agency? |
. . . . . . . . . . . . . . . . . . . . |
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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
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Is contract |
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in effect |
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Sum of all payments |
now (as you |
If no, enter |
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to / retained by PFR |
complete |
date contract |
Name |
Mailing address |
during year reported |
the form)? |
ended |
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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
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)
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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.
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Item |
Where to Find it: |
Amount |
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Form 990: Part VIII, line 1h; |
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A. |
Contributions from IRS return |
Form |
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Form |
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B. |
Net income from special fundraising |
Form 990: Part VIII, line 8c; |
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events |
Form |
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C. |
Net income from gaming activities |
Form 990: Part VIII, line 9c |
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D. |
Total contributions and fundraising |
Add lines A, B, and C |
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E. |
Governmental grants |
Form 990: Part VIII, line 1e; |
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Form |
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grants included above on line A. |
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F. |
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Subtract line E from line D |
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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): |
________________________________________________________ |
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Title: |
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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.
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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,
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
Form Specifications
| Fact Name | Details |
|---|---|
| Governing Law | The Michigan CTS-02 form is governed by the Charitable Organizations and Solicitations Act (COSA), specifically MCL 400.271 et seq. |
| Who Should File | This form is for charitable organizations renewing their solicitation registration or those whose prior registration has expired. |
| Filing Deadline | The renewal form is due 30 days before the expiration of your registration, which expires 7 months after the close of your fiscal year. |
| Submission Methods | You can file the renewal form via email, e-filing, fax, or mail. Email and e-filing are recommended for faster processing. |
| Resident Agent Requirement | A Michigan resident agent must be designated on the form. This agent is responsible for receiving official correspondence. |
| Professional Fundraiser Reporting | Organizations must report all professional fundraisers engaged for Michigan campaigns, including contracts and payments made during the reporting period. |
Michigan Cts 02: Usage Guidelines
The Michigan CTS-02 form is a Renewal Solicitation Form required for charitable organizations renewing their solicitation registration or for those whose prior registration has expired. Completing this form accurately is crucial for maintaining compliance with state regulations. Following the steps outlined below will ensure that the form is filled out correctly and submitted in a timely manner.
- Gather necessary documents, including the organization’s legal name, previous registration details, and any changes to organizing documents or bylaws since the last submission.
- Enter the organization’s exact legal name at the top of the form. If applicable, list any other names under which the organization intends to solicit.
- Provide the Attorney General File Number, telephone number, fax number, Employer Identification Number (EIN), email address, and website of the organization.
- Fill in the organization’s principal office street address. If there is no principal office, provide the address of the person who has custody of the financial records.
- If the mailing address differs from the principal office address, indicate this by providing the mailing address in the designated space.
- List all other office addresses located in Michigan, if applicable.
- Indicate whether there has been any change in the organization’s charitable purposes since the last registration. If so, summarize the current purposes in 50 words or less.
- Designate a resident agent located in Michigan who is authorized to receive official mail. Provide the agent's name and street address.
- Check all methods of solicitation that apply to the organization, such as mail, telephone, internet, personal contact, etc.
- State whether there has been a change in the organization’s tax status with the IRS since the last filing. If yes, provide an explanation.
- List all current officers and directors, indicating their roles. If necessary, use additional sheets for this information.
- Confirm whether any officer or director cannot be reached at the organization’s mailing address. If yes, provide their names and addresses on an additional sheet.
- Answer questions regarding any legal issues involving the organization or its officers, directors, employees, or fundraisers since the last registration. Provide explanations for any affirmative responses on a separate sheet.
- If the organization has engaged a professional fundraiser (PFR) for Michigan fundraising activities, list all PFRs and provide copies of contracts for each. Verify that all PFRs are currently licensed.
- Complete the financial statement section by providing the most recent fiscal year’s financial information. Attach any required IRS forms, such as Form 990, if applicable.
- Describe the organization’s activities or accomplishments during the fiscal period in the provided section. Use additional sheets if necessary.
- Ensure all lines are filled out completely. If any line does not apply, enter "0" where necessary.
- Review the entire form for accuracy and completeness before submission.
- Submit the completed form via email, e-filing, fax, or mail, ensuring to include all required documents. For faster processing, email or e-file is recommended.
After submission, it is advisable to verify that the filing has been received. This can be done by searching for the organization on the Michigan Attorney General's charity search website. The status will indicate if the application or registration is pending.
Your Questions, Answered
What is the Michigan CTS-02 form?
The Michigan CTS-02 form is a Renewal Solicitation Form required for charitable organizations that are renewing their solicitation registration under the Charitable Organizations and Solicitations Act (COSA). This form is essential for organizations whose previous registration has expired or is about to expire. It ensures compliance with state regulations regarding charitable solicitations in Michigan.
Who needs to file the CTS-02 form?
Charitable organizations that are renewing their solicitation registration must file the CTS-02 form. If your registration has expired, you are also required to submit this form along with any updated organizing documents, bylaws, or IRS status changes since your last submission. Organizations filing for the first time should use Form CTS-01 instead.
When is the renewal form due?
The renewal form is due 30 days before your solicitation registration expires. Generally, your registration will expire seven months after the end of your fiscal year. If you anticipate needing more time to file, you can request a five-month extension in writing before your registration expires.
What information is required on the CTS-02 form?
The form requires various details, including the organization's legal name, contact information, and a summary of its current charitable purposes. You must also designate a Michigan resident agent for legal correspondence. Additionally, if there have been any changes to your tax status or organizational structure, this information must be disclosed.
Are there any fees associated with filing the CTS-02 form?
No, there are currently no fees to register or renew your solicitation in Michigan. This makes it more accessible for charitable organizations to maintain compliance and continue their fundraising efforts without the burden of registration fees.
How can I submit the CTS-02 form?
You can submit the CTS-02 form through various methods: email, e-filing, fax, or traditional mail. For the fastest processing, email or e-filing is recommended. When emailing, ensure to include your Attorney General file number and legal name in the subject line, and attach the completed form in PDF format.
What happens if I don't file the renewal form on time?
If you fail to file the renewal form before the deadline, your solicitation registration will expire. This may prevent your organization from legally soliciting contributions in Michigan. To avoid this situation, ensure that you adhere to the deadlines and requirements outlined in the instructions.
Common mistakes
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Not using the exact legal name of the organization as it appears on the articles of incorporation. This can lead to confusion and delays in processing.
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Failing to provide a Michigan resident agent with a physical address. A P.O. box is not acceptable, and this information is crucial for processing the renewal.
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Leaving questions unanswered or failing to provide necessary details. All items must be completed to avoid delays.
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Not submitting the required financial statements for the most recently completed fiscal year. This includes IRS Form 990, 990-EZ, or 990-PF if applicable.
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Providing incomplete or inaccurate information about professional fundraisers. All engaged fundraisers must be listed, and their contracts must be provided.
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Failing to summarize changes in charitable purposes clearly. This summary should be concise and not merely a reference to other documents.
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Missing the 30-day deadline for submitting the renewal form before the registration expiration. Timely submission is essential to maintain compliance.
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Not verifying that all professional fundraisers are licensed in Michigan. This is a legal requirement and must be confirmed before filing.
Documents used along the form
The Michigan Cts 02 form serves as a Renewal Solicitation Form for charitable organizations wishing to continue their solicitation registration. In addition to this form, several other documents are often required or recommended to ensure compliance with state regulations. Below is a list of these documents, along with brief descriptions of each.
- Form CTS-01: This form is used by charitable organizations that are registering to solicit in Michigan for the first time. It captures essential information about the organization and its charitable purposes.
- Form CTS-03: Organizations that believe they qualify for an exemption from registration must file this form. It outlines the criteria for exemption and allows organizations to formally request it.
- Campaign Financial Statement (Form CTS-10): This document is required for all fundraising campaigns conducted by professional fundraisers. It details the financial aspects of the campaign and must be submitted within a specified time frame after the campaign concludes.
- PFR Contract: Charitable organizations must provide copies of contracts with professional fundraisers. This ensures that the fundraising activities comply with state regulations and that the fundraisers are properly licensed.
- IRS Form 990: Organizations that file this form with the IRS must include a copy with their renewal application. It provides a comprehensive overview of the organization’s financial status and activities for the previous fiscal year.
- Audited Financial Statements: If required, organizations must submit these statements to demonstrate financial accountability. They must be prepared according to generally accepted accounting principles.
- Documentation of Changes: If there have been any changes in the organization’s purposes, bylaws, or IRS status since the last registration, supporting documents must be submitted to reflect these updates.
Each of these documents plays a crucial role in the registration and renewal process for charitable organizations in Michigan. Ensuring that all forms are accurately completed and submitted on time can help organizations maintain compliance and continue their important work in the community.
Similar forms
The Michigan CTS 02 form is a Renewal Solicitation Form used by charitable organizations to renew their solicitation registration in Michigan. It shares similarities with several other forms and documents used in the context of charitable solicitations and registrations. Below are seven documents that are similar to the Michigan CTS 02 form, along with explanations of their similarities:
- Form CTS-01: This is the initial registration form for charitable organizations that are soliciting contributions in Michigan for the first time. Like the CTS 02, it requires detailed information about the organization, including its legal name and purposes.
- Form CTS-03: This form is used by organizations that are seeking an exemption from registration under the Charitable Organizations and Solicitations Act. Similar to the CTS 02, it requires organizations to provide specific information about their status and activities.
- Campaign Financial Statement (Form CTS-10): This document is required for campaigns conducted by professional fundraisers. Like the CTS 02, it involves detailed financial reporting and must be filed within a specific timeframe after the campaign concludes.
- IRS Form 990: Charitable organizations must file this annual return to report their financial information to the IRS. The CTS 02 requires organizations to submit their IRS Form 990 if applicable, highlighting the importance of financial transparency in both documents.
- Professional Fundraiser (PFR) Contract: Organizations must report any contracts with professional fundraisers when filing the CTS 02. This requirement aligns with the need for transparency regarding fundraising activities and compensation, similar to what is required in other fundraising-related documents.
- Financial Statements: The CTS 02 form may require organizations to submit audited or reviewed financial statements, depending on their financial activities. This is similar to other forms that require financial disclosures to ensure compliance with state regulations.
- Annual Report Forms: Many states require charitable organizations to submit annual reports detailing their activities and finances. The CTS 02 serves a similar purpose, as it updates the state on the organization's current status and compliance with solicitation laws.
Dos and Don'ts
When filling out the Michigan CTS-02 form, there are several important guidelines to follow to ensure compliance and avoid delays. Below is a list of things you should and shouldn't do.
- Do provide the organization's exact legal name as it appears on official documents.
- Do summarize any changes in charitable purposes in 50 words or less.
- Do designate a Michigan resident agent with a street address, not a P.O. box.
- Do verify that all professional fundraisers (PFRs) are currently licensed before submitting the form.
- Don't use the CTS-02 form if you are filing for the first time; use Form CTS-01 instead.
- Don't leave any lines blank; enter "0" where applicable.
- Don't provide a copy of Schedule B from the IRS Form 990, 990-EZ, or 990-PF.
- Don't forget to attach all required documents in PDF format if filing by email or e-filing.
Misconceptions
The following list addresses common misconceptions about the Michigan CTS-02 form, which is used for renewing solicitation registrations for charitable organizations.
- Only new organizations need to file the CTS-02 form. This is incorrect. The form is specifically for organizations renewing their solicitation registration or those whose prior registration has expired.
- There is a fee to submit the CTS-02 form. In fact, there is currently no fee required to register or renew solicitation in Michigan.
- Organizations can use a P.O. box as their resident agent's address. This is not allowed. The renewal form requires a physical street address in Michigan for the resident agent.
- All charitable organizations must file the CTS-02 form. Not all organizations need to file. Those filing for the first time should use Form CTS-01, while exempt organizations should refer to Form CTS-03.
- Filing the renewal form can be done at any time. This is misleading. The renewal form must be submitted 30 days before the expiration of the current registration.
- Changes in organizational purposes do not need to be reported. On the contrary, if there are changes, organizations must summarize their current purposes in 50 words or less on the renewal form.
- Professional fundraisers do not need to be reported if they are consultants. This is a misconception. While consultants may not require licensing, all professional fundraisers must be reported on the form.
- Organizations do not need to verify the licenses of professional fundraisers. This is incorrect. Michigan law mandates that organizations verify that any contracted professional fundraiser is currently licensed.
- Financial statements are optional for organizations. This is not true. Organizations must provide a financial statement for their most recently completed fiscal year with the renewal form.
- There are no consequences for late submissions of the renewal form. This is misleading. Late submissions can lead to the expiration of the organization’s registration and potential legal penalties.
Key takeaways
Here are some key takeaways regarding the Michigan CTS-02 form:
- Who Should File: Charitable organizations renewing their solicitation registration or those whose prior registration has expired must file this form.
- Who Should Not File: Organizations filing for the first time should use Form CTS-01 instead.
- Extension Requests: If you need more time to file, request an extension in writing before your registration expires. This grants an additional five months.
- File Number: Always use the assigned file number on all correspondence and forms to ensure proper processing.
- No Registration Fee: Currently, there is no fee required to register to solicit in Michigan.
- Filing Methods: You can submit the renewal form via email, e-filing, fax, or mail. Email or e-filing is recommended for quicker processing.
- Complete Information: Answer all questions on the form completely to avoid delays and additional correspondence.
- Resident Agent: Designate a Michigan resident agent who can accept legal documents on behalf of your organization. This cannot be your organization itself.
- Professional Fundraisers: Report all professional fundraisers engaged for campaigns. Verify their licenses before contracting.
- Financial Statements: Provide a financial statement for your most recently completed fiscal year. This is crucial for your renewal.
Filling out the CTS-02 form correctly is vital for maintaining your organization's registration status. Make sure to follow these guidelines closely to ensure a smooth renewal process.