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PUBLIC POLICY

Policy Portal

Issue #221
April 14, 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

Supreme Court Decision Impacts Property Tax Exemption for Nonprofits

A recent Michigan Supreme Court ruling in Liberty Hill Housing v. Livonia (SC docket No. 131531) finds that a charitable housing group must occupy the property it rents to qualify for a property tax exemption. 

The Liberty Hill Housing Corporation requested a property tax exemption and was denied by the city. The group then appealed this decision to the Michigan Tax Tribunal, which sided with the city. The organization then appealed to the Court of Appeals, which upheld the Michigan Tax Tribunal's decision. 

MNA hopes to have an analysis to you soon regarding the implications of this ruling for all groups who currently qualify for property tax exemption.

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Michigan Giving and Volunteering Celebration 2008, presented by Comcast
April 16, 2008, 11:00 a.m. - 12:00 noon
State Capitol Building, Rooms 402-403, Lansing, Michigan
Register Now!

Today is your last chance to register for the Michigan Giving & Volunteering Celebration 2008, presented by Comcast! This event highlights the latest giving & volunteering stats for the state of Michigan and honors elected officials who have gone above and beyond the call of duty in their support of volunteerism.

The celebration is free of charge but pre-registration is required. Sign up online today.

This event is sponsored by Comcast and hosted by the Michigan Nonprofit Association. A special thanks to our partners: Council of Michigan Foundations, Michigan Campus Compact, Michigan Community Service Commission and Volunteer Centers of Michigan.

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MNA Board Opposes So Called "Fair Tax" Proposal

Due to its negative impact on nonprofits and those we serve, the MNA Board of Trustees recently voted to oppose the so called "Michigan Fair Tax" Proposal. Petitions are currently circulating to place the "fair tax" constitutional amendment on the November 4, 2008 ballot.

The proposal would eliminate the new Michigan Business Tax, other business taxes and the state income tax and replace them with at least a 9.75 percent sales tax that would tax food, prescription drugs, home sales, health care and other services. 

Based on MNA’s initial research, charities would be significantly impacted by the Fair Tax Proposal. Specifically:

  • Retail sold by nonprofits would no longer be exempt. Currently, nonprofits are exempt from collecting sales tax for retail sold up to $5,000 a year.
  • Existing tax credits for charitable giving would end. Individual tax credits for charitable giving to certain types of nonprofits are income tax credits and since the income tax would be eliminated, so would the tax credits. Also, the business tax credits for supporting certain types of nonprofits are based on the Michigan Business Tax, which would no longer be collected.
  • Significant loss of revenue to the state treasury would result in additional demands on the nonprofit sector to meet critical needs. It is unlikely that this proposal would be revenue neutral.
  • Services provided for a fee, such as conference registration or membership dues, could be subject to the tax.
  • Products and property purchased by charities would continue to be exempt from paying sales tax if the purchases were made to further the mission of the organization.

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Worry-Free Advocacy
Understanding the Rules of Nonprofit Advocacy and Election-Related Activity
May 12, 2008, 9:00 a.m. – 4:00 p.m. 

During this one-day workshop for nonprofit managers, staff and volunteers, our attorney-trainers will teach you the rules so that you can answer questions such as:

  • What does it mean to "lobby"?
  • How much lobbying can your 501(c)(3) public charity do? 
  • What Michigan state laws apply to your lobbying, ballot measure and election activity?
  • What types of election-related activity can a 501(c)(3) and 501(c)(4) legally engage in? 

The fee to attend is $50. Included with the registration cost of this seminar is a set of Alliance for Justice Publications as well as catered lunch. You can register online or by calling Jeff Prior at 202-822-6070.

The session will be held on May 12 at the Lansing Center in Lansing, Michigan. This workshop is sponsored by the Alliance for Justice and co-sponsored by the Michigan Nonprofit Association. 

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State Budget Update

With the House and Senate back in session this week, the appropriations process will once again be in full swing. You can view the progress of budgets of interest to you at http://www.house.mi.gov/hfa/bill_status.asp.

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Framing: Developing and Delivering Effective Messages
April 22, 1:00 p.m. - 3:00 p.m.
Registration Fee: $25.00 Deadline: April 15, 2008 
Register online at http://www.mnaonline.org/workshops.asp#pub!

Messages for internal audiences, opinion shapers and the media, and elected officials and their staff are all important components of nonprofit advocacy. This workshop will focus on framing and developing key messages, identifying target audiences, and selecting communication modes that reach audiences in timely and persuasive ways. Presenter: Kelly Rossman-McKinney, The Rossman Group. The training will take place at the Fair Housing Center of West Michigan, 20 Hall Street SE, Grand Rapids.

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White House Project - Michigan Go Run   

Our friends at The White House Project are hosting their first Michigan Go Run and we’re inviting you to run!

Michigan Go Run is a nonpartisan political leadership training for women throughout Michigan.  Go Run will inspire you to step into leadership.  Go Run will inform you about campaign work and demystify the political process.  Go Run will equip you with the skills it takes to run for elected office and win.

Michigan Go Run is for women at every stage of political involvement – whether you plan to run this year, next year, in ten years or if you just want to get more civically involved. You’re invited to join the inaugural class of Michigan Go Run! Apply online at www.thewhitehouseproject.org!

Michigan Go Run 2008
May 30 – June 1, 2008
Radisson Hotel Lansing
111 N. Grand Avenue
Lansing, MI 48933      

Tuition and housing scholarships, as well as travel and child care stipends, are available from The White House Project. For more information contact Shannon Garrett, Michigan Field Director, at 616-454-8836 or sgarrett@thewhitehouseproject.org. 

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IRS Form 990 Instructions Released - Comments Due June 1

The IRS has released draft instructions for the redesigned Form 990. Comments on the instructions are due to the IRS by June 1. The draft instructions include a  general overview of the form or schedule explaining its purpose, an explanation of who must file that particular schedule, and line-by-line instructions to aid in answering each question on the form or schedule. Also included are new features such as a comprehensive glossary of terms; a sequencing list to help organizations determine the order in which to fill out parts of the form; and a compensation table to help organizations determine how and where to report items of compensation.

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Join Nonprofit Leaders from Across the Country at the Nonprofit Congress
It’s not too late to register! Register online at www.nonprofitcongress.org.

On June 1-4 2008, hundreds of nonprofit professionals will converge in D.C. to act collectively for positive change in our sector and in our communities. Will you be one of them? Convene in our nation’s capital, connect with peers across the country and commit to creating positive change at the Nonprofit Congress National Meeting! 

Gain inspiration from noted plenary speakers and from the work done across the country by your fellow attendees. Build on our collective successes and lay the foundation for continued work in local communities. Join together with thousands of other nonprofits who have affirmed their commitment to the values held by the sector through their daily actions. 

Nonprofit Congress 2008 - Convene · Connect · Commit will build on and celebrate the accomplishments of nonprofits committed to positive change for our sector and our communities. Don’t wait to be part of this exciting event!

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Nonprofit Vote 2008 Website Launched

Nonprofit Vote (www.nonprofitvote.org) is a one-stop voter participation resource center for the 501(c)(3) sector. Its mission is to help you engage your clients in voting and democracy. The site connects you to MNA’s voter engagement website – www.michparticipationproject.org, as well as provides additional information on election activity guidelines for 501(c)(3) nonprofits and techniques for encouraging voter participation.

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