Outline
The Michigan CTS-02 form serves as a crucial document for charitable organizations seeking to renew their solicitation registration under the Charitable Organizations and Solicitations Act (COSA). Organizations must file this form if they are renewing their registration or if their prior registration has expired. It is important to note that first-time filers should use the CTS-01 form instead. The CTS-02 requires detailed information about the organization, including its legal name, any other names under which it solicits, and the designation of a Michigan resident agent for legal correspondence. Organizations must also report any changes to their charitable purposes, financial activities, and the engagement of professional fundraisers, ensuring compliance with state regulations. The renewal process emphasizes the importance of accurate and complete submissions, as incomplete forms can lead to delays. Additionally, organizations must provide a financial statement for their most recently completed fiscal year, along with any required documentation regarding professional fundraisers. Failure to adhere to these guidelines may result in civil or criminal penalties, underscoring the necessity for thorough preparation and understanding of the renewal requirements.
Sample - Michigan Cts 02 Form
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 Information
| Fact Name | Description |
|---|---|
| Governing Law | The Michigan CTS-02 form is governed by the Charitable Organizations and Solicitations Act (COSA), specifically under MCL 400.271 et seq. |
| Who Should File | This form is for charitable organizations renewing their solicitation registration or for those whose prior registration has expired. |
| Who Should Not File | Organizations filing for the first time should use Form CTS-01. Exempt organizations should refer to Form CTS-03. |
| Registration Expiration | The solicitation registration expires 7 months after the close of the organization's fiscal year. |
| Extension Requests | Extensions must be requested in writing before the registration expires and will provide an additional 5 months to file. |
| Filing Methods | Organizations can renew their registration via email, e-filing, fax, or mail, with email and e-filing recommended for faster processing. |
| No Registration Fee | Currently, there is no fee required to register for solicitation in Michigan. |
| Resident Agent Requirement | A Michigan resident agent must be designated to accept legal documents on behalf of the organization. |
| Professional Fundraiser Reporting | All professional fundraisers engaged for Michigan campaigns must be reported, and their contracts submitted within 10 days of signing. |
Detailed Guide for Filling Out Michigan Cts 02
Filling out the Michigan CTS-02 form is an important step for charitable organizations looking to renew their solicitation registration. Once you've completed the form, you’ll need to submit it to the Department of Attorney General to ensure your organization remains compliant with state regulations.
- Gather necessary information: Before starting, collect your organization’s legal name, contact information, and any changes to your organizing documents or bylaws since your last registration.
- Complete the organization details: Fill in the full legal name of your organization and any other names under which you intend to solicit. Include your Attorney General file number, telephone number, fax number, Employer Identification Number (EIN), email address, and website.
- Provide addresses: Enter the street address of your principal office. If you don’t have a principal office, provide the name and address of the person who has custody of your financial records. Include your mailing address if it differs from your principal office.
- Summarize changes: If there have been changes in your organization’s purposes, summarize the current purposes in 50 words or less.
- Designate a resident agent: Name a Michigan resident agent authorized to receive official mail. Provide their street address (not a P.O. box).
- Methods of solicitation: Check all applicable methods of solicitation your organization uses, such as mail, telephone, internet, or special events.
- Tax status changes: Indicate if there has been any change in your organization’s tax status with the IRS since your last filing and provide an explanation if applicable.
- List officers and directors: Provide the names of all current officers and directors unless they are included on your IRS return. Mark whether each person is an officer, director, or both.
- Professional fundraisers: If you have engaged a professional fundraiser (PFR) for Michigan fundraising activities, list all PFRs and provide copies of contracts if not already submitted.
- Financial statement: Attach your organization’s financial statement for the most recently completed fiscal year. If you file Form 990, 990-EZ, or 990-PF with the IRS, include a copy.
- Complete all remaining items: Answer all remaining questions on the form, ensuring no lines are left blank. If necessary, provide additional sheets for explanations.
After completing the form, you can submit it via email, e-filing, fax, or mail. For quicker processing, consider using email or e-filing options. Make sure to check that your submission has been received by searching for your organization on the Michigan Attorney General's website.
Obtain Answers on Michigan Cts 02
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What is the Michigan CTS-02 form?
The Michigan CTS-02 form is a Renewal Solicitation Form used by charitable organizations to renew their registration for soliciting contributions in Michigan. It is part of the Charitable Organizations and Solicitations Act (COSA) and must be filed by organizations whose previous registration has expired or is about to expire.
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Who is required to file the CTS-02 form?
This form must be filed by charitable organizations that are renewing their solicitation registration or those whose prior registration has expired. If you are filing for the first time, you should use the CTS-01 form instead.
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What happens if my registration expires?
If your registration expires, you will need to provide copies of any changes to your organizing documents, bylaws, IRS status, or charitable purposes since your last submission. It's essential to keep your information updated to avoid any issues with your registration.
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How can I file the CTS-02 form?
You can file the renewal form via email, e-filing, fax, or traditional mail. For quicker processing, email or e-filing is recommended. Make sure to include your AG file number and legal name in the subject line if you choose to email.
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What is the deadline for submitting the renewal form?
The renewal form must be submitted 30 days before the expiration of your registration. Your solicitation registration expires seven months after the close of your fiscal year, so it's crucial to keep track of these dates.
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Is there a fee to file the CTS-02 form?
No, there is currently no fee required to register to solicit in Michigan. This makes it easier for charitable organizations to maintain their registration without incurring additional costs.
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What should I include in the renewal form?
When completing the renewal form, provide the organization's exact legal name, any other names under which you intend to solicit, and a summary of your current charitable purposes if they have changed. Additionally, you will need to designate a resident agent located in Michigan and provide a financial statement for your most recently completed fiscal year.
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What is a Professional Fundraiser (PFR) and do I need to report them?
A Professional Fundraiser is anyone who plans or conducts fundraising campaigns on behalf of a charitable organization. If your organization has engaged a PFR, you must report their engagement and provide copies of contracts. You also need to verify that any PFR you contract with is currently licensed.
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What if my organization has had changes in its tax status or purposes?
If there has been any change in your organization's tax status with the IRS or its charitable purposes since your last filing, you must explain these changes in the renewal form. This ensures that the information on record is accurate and up-to-date.
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How can I verify that my filing has been received?
You can verify that your filing has been received by searching for your organization at www.michigan.gov/AGCharitySearch. The search results will indicate if your application or registration is pending.
Common mistakes
Filling out the Michigan CTS-02 form can be straightforward, but many people make common mistakes that can lead to delays or complications. One frequent error is not using the exact legal name of the organization. The form requires the organization's legal name as it appears on the articles of incorporation. If a different name is used, it can cause confusion and may result in the form being rejected.
Another common mistake is failing to summarize changes in charitable purposes. If there have been any changes since the last registration, the form requests a brief summary of 50 words or less. Simply quoting previous documents or using standard IRS language is not acceptable. This summary helps keep the organization’s information current and accurate in the database.
People often overlook the requirement for a Michigan resident agent. The renewal form cannot be processed without this information. It’s crucial to provide a street address, not a P.O. box, and to ensure that the organization does not name itself or certain government officials as the resident agent. This oversight can halt the processing of the renewal.
Another mistake occurs when organizations fail to report all professional fundraisers (PFRs) involved in their campaigns. The form requires disclosure of any PFR engaged in fundraising activities, including their compensation. Not providing this information can lead to compliance issues and potential penalties.
Additionally, some individuals leave lines blank on the form, particularly in sections that require financial statements or descriptions of activities. Every line must be filled out completely. If a certain item does not apply, entering “0” is necessary to avoid confusion. Leaving blanks can raise red flags and delay processing.
Lastly, organizations sometimes neglect to verify that their financial statements meet the requirements. If audited statements are needed, they must be prepared according to generally accepted accounting principles. Failing to provide these documents or not following the correct procedures can result in the rejection of the renewal application.
Documents used along the form
The Michigan Cts 02 form is essential for charitable organizations seeking to renew their solicitation registration in Michigan. However, several other documents are often needed in conjunction with this form to ensure compliance with state regulations. Below is a list of these documents, along with a brief description of each.
- Form CTS-01: This form is used by charitable organizations that are registering to solicit contributions in Michigan for the first time. It serves as the initial application for solicitation registration.
- Form CTS-03: Organizations that believe they qualify for an exemption from registration must use this form to request exemption. It outlines the criteria for exemption under Michigan law.
- Form CTS-10: Known as the Campaign Financial Statement, this form is required for all fundraising campaigns conducted by professional fundraisers. It details the financial activities of the campaign.
- IRS Form 990: Charitable organizations must provide this form, which summarizes their financial information, if they file it with the IRS. It is crucial for transparency and accountability.
- Audited Financial Statements: If applicable, organizations must submit audited financial statements prepared in accordance with generally accepted accounting principles. This provides a detailed overview of financial health.
- Professional Fundraiser (PFR) Contracts: Copies of contracts with any engaged professional fundraisers must be submitted. This ensures compliance with licensing and regulatory requirements.
- Engagement Letter: If an organization is in the process of obtaining audited financial statements, a letter from the auditing firm outlining the engagement must be included with the renewal form.
- Change of Purpose Documentation: If there have been changes to the organization's charitable purposes since the last registration, documentation summarizing these changes must be provided.
- Resident Agent Designation: The organization must designate a Michigan resident agent who is authorized to receive official correspondence. This designation must be documented in the renewal form.
- Additional Sheets for Explanations: If any questions on the form are answered with "yes," detailed explanations must be provided on separate sheets to clarify the circumstances.
Collectively, these documents support the renewal process and help maintain transparency in charitable activities. Ensuring that all forms are accurately completed and submitted on time is vital for compliance with Michigan's charitable solicitation laws.
Similar forms
The Michigan Cts 02 form is primarily used for the renewal of solicitation registration by charitable organizations in Michigan. Several other documents serve similar purposes in the realm of charitable solicitation and registration. Here are four documents that share similarities with the Michigan Cts 02 form:
- Form CTS-01: This form is utilized by charitable organizations that are filing for the first time to solicit in Michigan. Like the Cts 02, it requires detailed information about the organization, including its legal name and purpose, but is specifically designed for new applicants rather than renewals.
- Form CTS-03: This document is a request for exemption from registration for certain organizations. Similar to the Cts 02, it addresses the requirements for charitable organizations but focuses on those that qualify for exemption, thereby streamlining the process for eligible entities.
- Form CTS-10: The Campaign Financial Statement is required for all campaigns conducted by professional fundraisers. It shares the need for transparency and accountability found in the Cts 02, as both forms demand detailed financial disclosures related to fundraising activities.
- IRS Form 990: This form is filed annually by tax-exempt organizations to provide information on their financial activities. Like the Cts 02, it emphasizes the importance of transparency and accountability, requiring organizations to disclose their financial status and operational details to maintain compliance.
Dos and Don'ts
When filling out the Michigan CTS-02 form, it is crucial to ensure accuracy and completeness. Below is a list of important dos and don'ts to guide you through the process.
- Do ensure that you provide the exact legal name of your organization as it appears on official documents.
- Do summarize any changes in your charitable purposes in 50 words or less, avoiding generic language.
- Do designate a Michigan resident agent with a physical address, not a P.O. box.
- Do verify that any professional fundraisers you work with are licensed in Michigan.
- Do submit all required documents, including financial statements, with your renewal form.
- Do answer all questions completely, leaving no lines blank. If a question does not apply, enter "0" or "N/A."
- Don't use the CTS-02 form if you are filing for the first time. Instead, use Form CTS-01.
- Don't forget to check for any changes in your organization's tax status with the IRS since your last filing.
- Don't neglect to provide explanations for any "yes" answers regarding legal or compliance issues.
By following these guidelines, you can help ensure that your renewal process goes smoothly and that your organization remains compliant with Michigan's regulations.
Misconceptions
Understanding the Michigan CTS-02 form can be tricky, and several misconceptions can lead to confusion. Here are four common misunderstandings:
- Anyone can use the CTS-02 form to register for solicitation in Michigan. This is not true. Only organizations renewing their registration or those whose previous registration has expired should use this form. New organizations must use Form CTS-01 instead.
- The renewal form can be submitted at any time before the expiration date. In reality, the renewal form is due 30 days before your registration expires. If you miss this deadline, your organization may face penalties or complications.
- There is a fee associated with filing the renewal form. This is a misconception. Currently, there is no fee required to register or renew your solicitation in Michigan, which can be a relief for many organizations.
- Providing a P.O. Box as a resident agent's address is acceptable. This is incorrect. The renewal form requires a street address for the resident agent, and a P.O. Box cannot be used. This ensures that official correspondence can be delivered properly.
Key takeaways
Filling out and using the Michigan Cts 02 form requires attention to detail and adherence to specific guidelines. Here are some key takeaways to keep in mind:
- Eligibility: This form is for charitable organizations renewing their solicitation registration or those whose previous registration has expired. First-time applicants should use Form CTS-01 instead.
- Deadline Awareness: The renewal form is due 30 days before your registration expires, which is seven months after the end of your fiscal year. Extensions can be requested in writing before the expiration date.
- File Number Usage: Always include your organization’s assigned file number on all correspondence and forms. This helps ensure that your submissions are processed correctly.
- Submission Methods: You can submit the renewal form via email, e-filing, fax, or traditional mail. Email and e-filing are recommended for faster processing.
- Resident Agent Requirement: A Michigan resident agent must be designated for receiving legal documents. This agent cannot be the organization itself or certain state officials.
- Financial Reporting: Organizations must provide a financial statement for the most recently completed fiscal year. If applicable, include IRS Form 990, 990-EZ, or 990-PF with your renewal form.
By keeping these points in mind, organizations can navigate the renewal process more smoothly and ensure compliance with Michigan's regulations.