Michigan Senate Bill SB0808

Michigan 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/9/24

Caption

Businesses: charitable organizations; contribution thresholds related to audit requirements for charitable organizations; revise. Amends sec. 3 of 1975 PA 169 (MCL 400.273).

Impact

The overarching goal of SB0808 is to enhance transparency and regulatory oversight within the charitable sector. By requiring more detailed financial reporting—particularly from larger organizations—the bill seeks to ensure funds raised by charities are used effectively and responsibly. This could positively impact public trust in charitable organizations and potentially increase donor confidence. Furthermore, provisions for adjusting financial thresholds based on inflation are included to ensure that the law remains relevant over time.

Summary

Senate Bill 808 is aimed at amending the Charitable Organizations and Solicitations Act of 1975 to update the registration and financial reporting requirements for charitable organizations. The bill mandates that all charitable organizations intending to solicit contributions must register with the attorney general, unless they are exempt. Registration will require a detailed statement including the organization’s name, address, officer information, tax status, and the intended use of solicited funds. Additionally, organizations must provide financial statements based on their contributions in the preceding year, with specific thresholds determining whether these need to be reviewed or audited.

Contention

Potential points of contention regarding SB0808 may arise from the increased regulatory burden placed on smaller charitable organizations. Critics may argue that the enhanced financial reporting requirements could dissuade charitable activities, particularly for smaller nonprofits that operate with limited resources. Conversely, proponents would likely argue that such measures are necessary to prevent fraud and protect the interests of donors and beneficiaries. The enforcement mechanism and the discretion granted to the attorney general in waiving certain requirements may also spark debate about oversight and fairness in regulation.