The two most common sources of state nonprofit corporation laws are. Michigan nonprofit corporation act act 162 of 1982 an act to revise. Michigans nonprofit corporation act nca provides for voluntary dissolution through either. Ywca of kalamazoo non profit housing corporation 501c3. Unlike the other types of michigan corporations and llcs, a michigan nonprofit corporation may be eligible for certain benefits, including tax exemptions on both the state and federal levels. Act 557 includes changes to the michigan nonprofit corporation act.
Mar 22, 2020 the corporation is organized for the purpose of benefiting the young womens christian association of kalamazoo, michigan ywca, a nonprofit corporation incorporated in the state of michigan pursuant to the michigan nonprofit corporation act, mcl 450. Some of the amendments will require action by management to amend bylaws or articles of incorporation, but most will not. How to dissolve a nonprofit corporation in michigan nolo. Changes to michigan nonprofit corporation act expand. Major revisions to michigan nonprofit corporation act 2015.
These and many other revisions to the act may require or make it advisable to amend your organizations articles of incorporation or bylaws. A nonprofit corporation is formed under the michigan nonprofit corporation act. Rick snyder ratified a significant set of revisions to the michigan nonprofit corporation act that every nonprofit should. Domestic nonprofit corporation agency licensing and regulatory affairs nonprofit corporations are those formed in which members may not receive any profits of the corporation. The michigan nonprofit corporation act the michigan. The michigan nonprofit corporation act the michigan community. A corporation may integrate into a singledocument the provisions of its articles of incorporation and at the same t ime may a lso furt her amend its articles of i ncorporation by a dopting restated articles of i ncorporation.
Bylaws of a michigan nonprofit corporation article i. Michigan compiled laws complete through pa 85 of 2020. Purposes of nonprofit corporations state of michigan. Some purposes for which nonprofit corporations are commonly formed are those involving religious, educational and charitable activities. Ywca of kalamazoo non profit housing corporation guidestar.
Major changes to the michigan nonprofit corporation act. Licensing and regulatory affairs nonprofit corporations are those formed in which members may not receive any profits of the corporation. Doing so also will shift to the third party liability for the acts or omissions imposed by law on directors to the extent that the discretion or powers of the directors have been shifted to the third. Contemporaneously, minor amendments were made to the dissolution for charitable purposes act 2 and limited liability company act 3. Nonprofit corporation act michigan legislature state of michigan. Oct 19, 2011 non profit laws of michigan how binding are the bylaws of a non profit registered as a 501c, and is all the boardmembers liable for any infraction committed.
Summary of changes to michigan nonprofit corporation act. May 04, 2015 while the bills make many changes to michigan nonprofit law, this post will highlight five changes that have the potential to make a large impact on the average michigan nonprofit corporation. Forming a nonprofit corporation in michigan here are the steps to form a nonprofit corporation in michigan. Reservation of power to amend or repeal the legislature has the power to amend or repeal all or part of this act at any time and all domestic and foreign corporations subject to this act are governed by the amendment or repeal. The michigan nonprofit corporation act and the dissolution of charitable purpose corporations act have recently been amended.
Short title this title may be known and cited as the maine nonprofit corporation act. In act 557, the ability to indemnify or limit the liability of a director is expanded. The amended act permits a nonprofit corporation to shift its management completely away from its board of directors to an independent third party. If, after the adoption of this article, the michigan nonprofit corporation act is amended to further eliminate or limit the liability of a volunteer director or officer, then a volunteer director or officer of the corporation in addition to the circumstances in which a director or officer is not personally liable as set forth in the preceding. Many of the changes could have a significant impact on the way a nonprofit organization is governed.
The present name of the corporation is all about animals rescue. Business corporation act act 284 of 1972 an act to provide for the organization and regulation of corporations. These three bills amend the michigan nonprofit corporation act the act which is the law under which most michigan nonprofit corporations operate. May 08, 2015 the michigan nonprofit corporation act and the dissolution of charitable purpose corporations act have recently been amended. Nonprofit corporation act michigan legislature state of.
It depends on normal governance requirements of a corporation. On january 10, 2015, governor snyder approved amendments to the michigan nonprofit corporation act 1 the act which became effective january 15, 2015. Bylaws of 482forward a michigan nonprofit corporation. Terms used in michigan laws chapter 450 act 162 of 1982.
Statutes amendments to michigan nonprofit corporations act. After the articles of incorporationare filed, additional documents may be required, under the michigan nonprofit corporation act, 1982 pa 162, to implement the corporations intended changes. Pursuant to the provisions of the michigan nonprofit corporation act, being act 162, public acts of 1982, as amended the act, the undersigned corporation corporation executes the following articles. Summary of changes to michigan nonprofit corporation act that affect nonprofit corporations effective january 15, 2015, governor snyder signed into law senate bills 623, 624 and 929.
A summary of the changes to the michigan nonprofit. A summary of some of the important amendments to the act appear below. A michigan nonprofit corporation is formed to provide some kind of public or community benefit. Significant revisions to michigans nonprofit corporation act. The directors term of service on the board, as well as the procedure for his appointment and removal, is not outlined in state law and is instead determined by the nonprofit s corporate bylaws. New michigan laws governing nonprofit corporations dawda mann. Michigan recently enacted significant amendments to the michigan nonprofit corporation act. The last major revisions to the nonprofit corporation act took place in 2008 through public act 9 of 2008, which permitted voting by electronic means, amongst other things. Changes to michigan nonprofit corporation act expand liability. Michigan laws on a nonprofit organizations board of. On january 15, 2015, governor rick snyder signed into law a series of bills that implemented a number of changes to the michigan nonprofit corporation act.
You should read this page in conjunction with the general section on forming a nonprofit corporation, which has additional steps listed that are applicable to all states. Changes to the michigan nonprofit corporation act by edward j. Sweeping changes to michigans nonprofit corporation act. Aug 07, 2015 the michigan corporation division will no longer accept such amendments for filing without the prior approval from the michigan attorney generals office. Summary of changes to michigan nonprofit corporation act that. Effective january 15, 2015, governor snyder signed into law senate bills 623, 624 and 929. On january 10, 2015, governor snyder approved amendments to the michigan nonprofit corporation act1 the act which became effective. A nonprofit corporation that has been given 501c3 status by the internal revenue service is not only tax exempt, but it also allows donors to write. Nonprofit corporation act act 162 of 1982 an act to revise, consolidate, and classify the laws relating to the organization and regulation of certain nonprofit corporations. By signing michigan senate bills 623, 624 and 929 on jan. General michigan condominium act and landlordtenant act. This article contains a summary of the significant changes that may warrant amending the organizing documents of existing michigan nonprofit corporations.
Nonprofits when serving as an officer or board member of a nonprofit organization, it is vital to monitor any changes in the governing law. Six major revisions to the michigan nonprofit corporation act. The act was modelled on the business corporation act bca. After the amendment the corporation must comply with the rules for ballot voting contained in the michigan nonprofit act. Summary of sources of state nonprofit corporation laws.
Michigan laws chapter 450 act 162 of 1982 nonprofit. The general purpose of the organization is to operate exclusively for such charitable and educational purposes as will qualify it as an exempt organization under section 501c3 of the internal revenue code. The corporation identification number cid assigned by the. There are, however, numerous other minor changes throughout the statute. Some of the amendments described below will require action by management to amend bylaws or articles of incorporation, but most will not. Forming a nonprofit corporation in michigan digital media. Effective january 1, 2015, governor snyder signed into law senate bills 623, 624 and 929. Changes in liability limitation allowed in bylaws regarding a director of a non profit corporation, whether or not that individual is paid or is a volunteer. Michigan nonprofit corporation filing information state of michigan.
Major revisions to the michigan nonprofit corporation act. In january 2015, governor snyder signed michigan senate bills 623, 624, and 929, which make significant revisions to the michigan nonprofit corporation act mcl 450. After the articles of incorporation are filed, additional documents may be required, under the michigan. This act shall be known and may be cited as the nonprofit corporation act. Significant changes made to michigan laws governing nonprofit. Changes to how nonprofits do business in michigan heres an easytounderstand summary of recent changes made to the michigan nonprofit corporation act.
Jul 21, 2017 in michigan, a nonprofit is required to have at least three directors. Commentary written at the time of the nonprofit corporation act, p. Mar 10, 2015 act 559 amends the michigan limited liability company act 1993 pa 23 to authorize the merger of a domestic limited liability company with a nonprofit corporation. Members or shareholders can also act by unanimous written consent without a meeting, or by majority of member vote by written consent if provided for in the articles of incorporation. This article is intended to be a brief summary of some of the more significant changes to the michigan nonprofit corporation act.
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