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PUBLIC POLICY

Policy Portal

Issue#124
June 12, 2006

STATE NEWS

FEDERAL NEWS

MNA Action Network
The place where you can speak directly to elected officials about the issues affecting the nonprofit sector

STATE NEWS

Introduced bill changes how charitable trusts can disperse funds

HB 6153 amends the Supervision of Trustees for Charitable Purposes Act to enforce the intent of the grantors of a charitable trust in the distribution of assets. A charitable trust includes public charities and private foundations that hold property for a charitable purpose. Specifically, the bill requires 50% of the charitable trust’s grants and distributions to be made in Michigan and states that no more than 50% of the trust’s grants or distributions may be made to different types of recipients than were made by the original trustees up to the time that more than half of the original trustees had turned-over.

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Auction bill moves closer to a vote

The House Tax Policy Committee has favorably reported SB 1039 out of committee, meaning that the bill now moves to the full House for consideration. MNA strongly supports Senate Bill 1039. Nonprofits that hold auctions are responsible for paying sales tax to the state based on the winning bid of an item sold at the auction*.  However, there are many times when a donor bids far above the fair market value of an auction item with the intention of these additional funds supporting the organization and its efforts. SB 1039 will address this issue by allowing nonprofits to seek a credit or refund from the state for the additional sales tax paid. This will allow nonprofits to better honor the intent of their donors and will provide these organizations with some additional dollars to help them serve our communities.

*Groups with sales of less than $5,000 in a calendar year are not required to collect and pay sales tax. Additional information on sales and use tax exemptions for nonprofits is available on the MNA website

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Revision allows electronic transmission for board votes and more

Although common practice, the Nonprofit Corporation does not currently specify the conditions under which board members can conduct a meeting via remote communication nor does it state that boards can vote via electronic communication (email, etc.). SB 1279 addresses this issue and other concerns regarding electronic transmission. Introduced by Senator Alan Sanborn, the bill has passed the Senate and has been referred to the House Commerce Committee. An analysis is available online.

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Appropriations process moves to conference

The House and Senate recently passed their budget bills, leaving the House and Senate conference committees to iron-out the differences between the bills. House conferees have already been appointed and the Senate is expected to name conferees shortly. A list of conferees is available on the House Fiscal Agency’s website. Additional information on the content of some of the budget bills is available at the Michigan League for Human Services website.

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How the "Stop OverSpending" and "Michigan Civil Rights Initiative" ballot proposals impact Michigan nonprofits

As the “SOS” campaign collects signatures, MNA continues to be concerned about the impact of the proposal on nonprofits in Michigan. Specifically, this initiative could lead to decreased funding for organizations, an increased need for services, fundraising challenges, and a risk to public safety. For more information on the impact of this measure on the nonprofit community, visit the MNA website.

Click here for more information on how to join the Defend Michigan coalition working to stop the “SOS” ballot initative.

MNA is also concerned about the effect of the “MCRI” ballot proposal. Visit the MNA website for more information on how programs funded by government and provided by nonprofits will be affected by the anti-affirmative action measure.

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Nonprofit Day 2006 - Registration available online

Registration is available online for Nonprofit Day – MNA’s annual one-day public policy conference. Nonprofit Day this year is on September 27 and will be held at the Lansing Center in Lansing. A preliminary agenda is also available online. To register or for more information visit MNA’s website.

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Save the Date - Governor's Faith Based and Community Resource Symposium

Mark your calendars for August 24, 2006 at the Cobo Conference Center in Detroit. The theme for the second annual Governor’s Faith Based and Community Resource Symposium is “Building Communities through Faith and Neighborhood Partnerships.” For additional information please call 313/456-0015.

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Legislative Schedule

The House meets Tuesdays and Wednesdays at 1:00 p.m. and on Thursdays at 10:30 a.m. The Senate meets Tuesdays, Wednesdays, and Thursdays at 10:00 a.m. The Senate and House session schedule for 2006 is available at the Michigan Legislature website.

For information on committee meetings, visit the Michigan Legislature website.

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Appointments by Governor Granholm

The Governor recently announced appointments to the Council on Physical Fitness, Health and Sports; Council for Arts and Cultural Affairs; the State Board of Accountancy; and the Board of Professional Surveyors. A listing of those appointed is available at the Governor's website.

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FEDERAL NEWS

Estate tax repeal faces possible set back

The Senate recently voted to block efforts to bring the estate tax repeal to a vote. Led by Senate Majority Leader Bill Frist, the repeal effort failed by a vote of 57-41. It is likely that the Senate will now work on compromise to reform the estate tax.

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Sunset Commission is Priority for House

Stated priorities of House Leadership include the creation of sunset commissions. Sunset commission proposals currently in the House would establish an unelected body tasked with reviewing federal programs and recommending which to dissolve.

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House Passes FY 07 Budget

The House passed its budget resolution (H. Con. Res 376) by a vote of 218-210 after rescheduling the vote twice due to lack of support. The House resolution includes $11.9 billion less in domestic discretionary funding than the Senate’s version.

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House Hearing on Charitable Incentives

On May 25, the House Small Business Subcommittee on Rural Enterprises, Agriculture, and Technology held a hearing titled “Unlocking Charitable Giving.” Majority Whip Roy Blunt (R-MO), Diana Aviv of Independent Sector, Paulette Maehara of the Association of Fundraising Professionals, and Michael Halterman of Catholic Charities of Kansas City were among those who testified. 

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Nonprofit Congress National Meeting, October 16-17, 2006, Washington, D.C. - Registration now open

The Nonprofit Congress is bringing together charitable leaders from across the United States to identify the values that all nonprofits share; develop a vision and priorities for the nonprofit sector; and Exercise a collective voice. Find out more or register for the Nonprofit Congress National Meeting today!

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