Michigan House Bill HB4745

Michigan 2025-2026 Regular Session

• Introduced: 7/22/25
• Refer: 7/22/25

Caption

Businesses: charitable organizations; exemptions from registration and reporting requirements; modify. Amends sec. 13 of 1975 PA 169 (MCL 400.283).

Impact

Moreover, HB4745 introduces notable exemptions for organizations that do not solicit more than $25,000 in contributions over a 12-month period, provided they adhere to transparency requirements by offering a financial statement. This change could significantly reduce regulatory burdens on grassroots organizations or for those whose fundraising activities are restricted to their immediate circles, thus encouraging charitable activities where extensive formal structures may not be feasible.

Overall

The legislative discussions surrounding HB4745 likely reflect a broader debate over the regulation of nonprofits, balancing the need for oversight to protect donors with the essential support required for grassroots charitable efforts. As such, this bill's passage could lead to significant shifts in how charitable activities are conducted and regulated within Michigan.

Summary

House Bill 4745 aims to amend Michigan's Charitable Organizations and Solicitations Act by modifying certain exemptions from registration and reporting requirements for charitable organizations. The bill specifies that organizations soliciting contributions for the benefit of identifiable individuals are not required to register if the contributions collected are turned over to the named beneficiary after deducting reasonable solicitation costs, and if all fundraising is conducted by unpaid volunteers. These provisions could simplify the fundraising processes for smaller organizations and individual fundraisers.

Contention

However, the bill also raises some points of contention. Critics argue that the relaxed regulations might invite misuse, allowing individuals or groups to exploit these exemptions without sufficient oversight, potentially leading to fraudulent solicitations. There may be concerns about safeguarding donor interests and ensuring that funds are allocated for their intended charitable purposes, thus calling into question the balance between supporting charitable actions and protecting the public from potential fundraising abuses.