Michigan Nonprofit Association
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PUBLIC POLICY

Policy Portal

Issue #204
January 7, 2008

STATE NEWS

FEDERAL NEWS

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

Michigan's Presidential Primary is January 15

Don't forget to get out and vote in Michigan's Presidential Primary election on Tuesday, January 15!

To confirm that you are registered to vote, or to locate your polling location, visit https://services2.sos.state.mi.us/mivote/.

For a listing of the Presidential candidates who will be on the Michigan ballot, click here.

If you will be unable to vote in person on January 15, you can obtain an absentee ballot from your local clerk's office or from a Secretary of State branch office. Requests to have an absentee voter ballot mailed to you must be received by your clerk no later than 2 p.m. the Saturday before the election. Visit http://www.michigan.gov/sos/0,1607,7-127-1633_11619-123989--,00.html#7 for more information.

More information on Michigan's Presidential Primary can be found on the Secretary of State's website at http://www.michigan.gov/sos/0,1607,7-127-1633---,00.html.

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Electronic Filing for Michigan Nonprofits Now Available for Several Forms

Nonprofits in Michigan can now electronically file the IRS Form 990, 990-EZ, and the most commonly used Charitable Trust Section forms to the Michigan Attorney General's Office. For instructions and more information, visit www.michigan.gov/ag and click on "charities," or contact the Michigan Attorney General's Charitable Trust Section at 517-373-1152.

Visit http://efile.form990.org/ and e-file today!

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Last Chance! Register Today for Public Policy 101: The Basics of Nonprofit Advocacy

Today is the last day for register for Public Policy 101: The Basics of Nonprofit Advocacy, taking place next Monday, January 14, from 1:00 p.m. - 4:00 p.m. in Grand Rapids. The cost to attend is $25. This training is a basic workshop for nonprofit staff, volunteers and board members who are thinking about increasing their capacity to do policy work at the State Capitol. Lobbying laws, planning for advocacy, and basic advocacy skills will be introduced in this session. Definitions of public policy, advocacy, lobbying, and the arenas for influence will also be discussed, as well as a basic description of the legislative process and how bills become law. The session presenter is Don Wotruba from Michigan Association of School Boards. For more information and to register, visit the MNA website.

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Legislative Breakfast Meeting for Washtenaw and Monroe County Nonprofits
January 28, 2008, 7:30 a.m. - 9:00 a.m.
Washtenaw United Way, Ann Arbor
Pre-Registration Required / Registration Deadline: Jan 21

If your nonprofit serves the citizens of Washtenaw and/or Monroe Counties, you are invited to attend a Legislative Breakfast Meeting. Taking place on January 28, 2008 from 7:30 a.m. - 9:00 a.m. at Washtenaw United Way, this meeting will feature a brief program and extensive networking time, providing nonprofit representatives with an opportunity to interact directly with state legislators from Washtenaw and Monroe counties to talk about the challenges and opportunities facing the nonprofit community.

All nonprofit representatives serving Washtenaw and/or Monroe Counties are welcome to attend and the event is free; however, pre-registration is required and the registration deadline is January 21. To register, contact Deborah Foster at 313-309-1650 or dfoster@mnaonline.org with your name, title, organization and contact information.

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AFJ Announces Launch of State Resources

Alliance for Justice (AFJ) is proud to introduce its new web-based state law resources. These resources detail the state law on campaign finance, ballot measures, lobbying disclosure, and voter registration issues, and are currently available for over a dozen different states, including Michigan. The resources provide comprehensive guidance on several key issues and help answer questions like:

  • What level of lobbying triggers registration and reporting requirements?
  • What is the current definition of electioneering communications?
  • Can a 501(c)(4) make a contribution to a candidate?
  • When does a 501(c)(3) organization that is working to support a ballot measure have to register with the state?

These newly-released state resources are available to nonprofit groups free of charge! How do you access these FREE resources? Visit AFJ's State Resources page at www.afj.org/stateresources, request a password, and one will be provided via e-mail. It's as simple as that. For more information, please e-mail statelawresources@afj.org.

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IRS Electronic Notification Now Required for Small Nonprofits

As of January 1, 2008, small tax-exempt organizations are now required to submit the Form 990-N, the e-Postcard.

Nonprofits with gross receipts of $25,000 or less (formerly exempt from notification) will be able to access a simple, web-based process for submitting the e-Postcard (there will not be a paper form). It will ask for basic identifying information such as the organization’s legal name, name under which it operates, address, employer identification number, and the name and address of its principal officer.

This annual notification will be due the 15th of the month after the close of the organization’s tax period. For example, if your tax period ends 12/31/07, the e-Postcard is due 5/15/08. An organization that fails to submit the form for 3 consecutive years will face revocation of tax-exempt status.

Visit the IRS website for additional information on this requirement.

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IRS Releases New Form 990

The IRS released the new Form 990 right before the holidays. Several of the modifications requested by MNA were implemented, including major changes to the summary page and the governance and compensation sections.

The basic structure of the new Form 990 consists of an 11-page core form that must be completed by each Form 990 filer. Nonprofits can describe their exempt purpose and accomplishments on the first two pages. Additionally, the 16 schedules included in the form are designed to require reporting of information only from those organizations that conduct particular activities.

The new Form 990 goes into effect for the 2008 tax year (for tax returns filed in 2009); however, smaller organizations will have the option of filing the simpler Form 990-EZ for a period of years. The new form will be phased in as a requirement for smaller nonprofits, with a schedule based on the organization's assets and gross receipts. 

  • If a nonprofit's gross receipts are less than $1 million or its assets less than $2.5 million, the organization may file the 990-EZ for the 2008 tax year (filed in 2009).
  • If gross receipts are less than $500,000 or assets less than $1.25 million, the organization may file the 990-EZ through the 2009 tax year (filed in 2010).
  • If gross receipts are less than $200,000 or assets less than $500,000, the organization may continue to file the 990-EZ past 2010.

The smallest nonprofits will be required to file a new electronic postcard (Form 990-N) beginning in 2008. The threshold for the Form 990-N is annual receipts under $25,000 for tax years 2008 and 2009, and annual receipts under $50,000 for 2010 and subsequent years. The filing thresholds for the full Form 990 will be set permanently at $200,000 gross receipts and $500,000 total assets beginning with the 2010 tax year.  

Some of the more substantive portions of a couple of the schedules in the Form 990 (Schedule H - Hospitals; Schedule K - Tax Exempt Bonds) will have their implementation delayed for one year to give organizations time to alter record keeping and other procedures. Only the portions of those schedules that provide certain identifying information regarding hospital facilities and bond issues must be completed for 2008.

Other important changes to the Form 990 from the discussion draft include:

  • One added page and a new schedule (Schedule O) allowing space for organizations to provide explanations and narrative responses to the form's questions;
  • Elimination of misleading ratios, percentages and metrics, instead incorporating a two-year summary of financial information that compares the current and prior years;
  • Organizations with a group exemption ruling can continue to file group returns;
  • The threshold for reporting on highly compensated employees was raised from $50,000 to $100,000;
  • Quantity reporting of non-cash contributions by many small nonprofits has been simplified by increasing the threshold of reporting from $5,000 to $25,000, combining clothing and household goods as a single line, and eliminating quantity reporting for these items and for books; and
  • It appears there will be no or limited reporting of membership relationships that provide for the payment of dues and confer voting rights.

For more information and to view the new Form 990, visit the IRS website at http://www.irs.gov/charities/article/0,,id=176613,00.html.

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Registration Now Available for Nonprofit Congress

Early bird registration for Nonprofit Congress 2008 - Convene, Connect, Commit is now available! The meeting, which will take place in Washington, D.C. on June 1-4, 2008, will include the 2008 Nonprofit Expo, displays featuring the successes of nonprofits nationwide, and educational sessions addressing advocacy, leadership, and other vital topics. Don't wait to be a part of this exciting event! Visit the Nonprofit Congress website for more information and to register!

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