Michigan charity registration close-out

Start with legal form and intended outcome. A Michigan charitable-purpose corporation that will end its existence follows the Attorney General dissolution review. A foreign nonprofit may remain alive in its formation state while withdrawing its Michigan authority. A charitable trust follows a final-accounting path. Ending a solicitation campaign, allowing a license to expire, or closing a donation page is not automatically any of those outcomes.

Build a record inventory with the legal name, EIN, LARA corporation number, Attorney General file number, formation state, IRS status, last Michigan solicitation, open CTS-02 renewal periods, charity or trust registration, charitable gaming, professional fundraiser relationships, restricted assets, grants, contracts, employees, and tax accounts. Search the Attorney General and LARA records separately and resolve name or status mismatches before preparing a close-out packet.

Michigan’s Dissolution of Charitable Purpose Corporations Act requires Attorney General review for charitable-purpose organizations other than the identified religious exception. The current CTS-04 questionnaire asks for organization and contact information, the records custodian, directors and officers, reason for dissolution, financial activity, liabilities, assets, and proposed distributions. The Attorney General dissolution page also identifies the requested supporting material.

Use reconciled records and explain every remaining asset and obligation. Include the federal returns and financial statements requested by the current form, the board action, governing documents if needed, proposed or completed distribution support, and a current balance through the closing date. If the last federal return does not end at zero assets, supply the additional accounting called for by the questionnaire. Preserve the signed packet and every attachment exactly as submitted.

If the review clears, the Charitable Trust Section issues a letter stating that the Attorney General does not object to dissolution. That letter then accompanies the LARA Certificate of Dissolution. Do not reverse the sequence or treat a CTS-04 delivery confirmation as the approval letter. A religious or non-charitable nonprofit that believes approval is unnecessary still requests the Attorney General letter described in the instructions rather than silently skipping the review.

After LARA processes the entity document, save the filed certificate and a dated corporation search. Keep the Attorney General letter in the same closing index but label it separately. If a solicitation renewal or charitable-trust accounting remains open, obtain confirmation about that record; entity dissolution does not automatically prove every Attorney General filing period was accepted.

For a nonprofit charitable-purpose corporation with Michigan authority that plans to withdraw, the Attorney General generally requests a letter explaining why authority was needed and why it is no longer needed, an inventory and disposition of Michigan assets, the most recent financial statements or IRS return, and articles if not already on file. The entity’s LARA withdrawal remains a separate filing after the charitable review.

A terminating registered charitable trust files a final accounting and acknowledgments of receipt from every receiving charity. If the trust was not registered, Michigan says to include CTS-06 with the final accounting and receipts. Do not use the corporate CTS-04 as a trust-termination substitute, and do not use the foreign withdrawal letter for a domestic corporation. The organization’s legal form controls the evidence.

On the approved date, stop Michigan-targeted solicitations, close recurring-gift and professional-fundraiser paths, settle campaign accounts, and retain donor and contract records. Address restricted gifts, grants, payroll, taxes, leases, permits, insurance, data, and mail. If the exempt organization itself terminates, complete the IRS final return and Schedule N as applicable; a Michigan-only withdrawal does not terminate federal exemption.

Verify each system independently: Attorney General no-objection or withdrawal response, charity or trust record, LARA entity record, and IRS record. Save the dated public results and correspondence. Use cautious language such as “withdrawal accepted” or “entity dissolved” for the record actually verified. CharityClarity can provide a quick state status signal where available, but it is not a complete dissolution review.