Information for Policymakers Information for Nonprofits Policy Issues About MNA Public Policy

Policy Portal

Issue #229
July 1, 2008

HEADLINES

• Legislature Passes Revisions to the Nonprofit Corporation Act
• Weekend Session Results in Majority of State Budget Being Approved
• Registration for Nonprofit Day 2008 to begin early July
• Learn How Your Nonprofit Can Get Involved in Voter Education and Mobilization Efforts!
• Nominations Now Being Accepted for the 2008 Nonprofit Champion Awards

Legislature Passes Revisions to the Nonprofit Corporation Act

This past weekend, the State Legislature adopted HB 5681, which amends the Nonprofit Corporation Act. Championed by MNA and sponsored by Majority Floor Leader Steve Tobocman and Representative Bill Huizenga, this bill accomplishes the following:

• The board of directors of a nonprofit corporation would need at least three directors. Currently, the act requires "one or more" directors. Under the bill, an existing corporation would need to have at least three directors beginning 180 days after the bill's effective date.
  
• A corporation that is a "charitable purpose corporation" could not provide loans to or guarantee an obligation of an officer or director of the corporation or a subsidiary, unless the officer or director is also a client of the corporation and the loan or guaranty is necessary to carry out the corporation's charitable purposes.
  
• A charitable purpose corporation that is automatically dissolved would have to provide notice of the dissolution to the attorney general within 60 days after the date of dissolution and could not dispose of any of its assets without written approval of the attorney general. 

HB 5681 now goes to the Governor to be signed into law.

These changes to the Nonprofit Corporation Act will promote and increase transparency, accountability and trust within the nonprofit sector. MNA takes an active role in supporting policies that will increase the capacity of Michigan's nonprofits to serve, strengthen, and transform communities, and we thank the bill sponsors for their support of the nonprofit sector through the passage of these policy changes.

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Weekend Session Results in Majority of State Budget Being Approved

The majority of the 2008-2009 State Budget was approved this past weekend during a marathon session that ran past midnight on Saturday. Below is a summary of the approved budgets:

• Agriculture (HB 5807): Totals $107.8 million, a $1.5 million decrease from current appropriations.
• Community Colleges (SB 1093): Totals nearly $300 million, an overall 2.1% increase.
• Community Health (SB 1094): Totals just over $12.5 billion, an increase over the previous year's budget by nearly half a billion dollars.
• Corrections (SB 1095): Totals just over $2 billion, representing a decrease of about $39 million compared to the current budget.
• D.E.Q. (SB 1097): Totals $364 million, an overall 2% decrease.
• D.N.R. (SB 1106): Totals just under $290 million, about $1.9 million above current spending levels.
• Education (SB 1096): Totals $95.1 million, a $4.8 million decrease in spending from current appropriations.
• Higher Education (SB 1099): Totals slightly more than $1.75 billion, an increase of $14.5 million.
• History, Arts & Libraries (HB 5804): Totals nearly $53 million, a slight increase over the current fiscal year's appropriations.
• Human Services (HB 5814): Totals $4.6 billion, representing a 0.7% cut in spending.
• Judiciary (HB 5810): Totals nearly $263 million, about a 1.2% increase.
• Labor, Economic Growth (HB 5809): Totals $1.4 billion, a nearly $76 million increase over current year spending.
• Military and Veterans Affairs (HB 5812): Totals $183.8 million, a $50 million increase from the last budget, accounted for in its entirety by federal pass-through dollars.
• State Police (HB 5811): Totals just over $530 million, $40 million less than current appropriations.

FY09 budgets that were not finalized include the K-12 budget (SB 1107), the Department of Transportation budget (HB 5808), the General Government budget (HB 5816), and the Capital Outlay budget (SB 511).

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Registration for Nonprofit Day 2008 to begin early July

Election 2008 is upon us and yet very few of the local, state and federal candidates are talking about the nonprofit sector and the issues of importance to our communities, those we serve and the resources we protect. Why is it that few current or future elected officials understand the economic and social power of nonprofits? For nonprofits to truly be recognized as key social and economic players in the state, we all must raise our voices regarding the value of Michigan nonprofits to the overall quality of life in the state.

This year's Nonprofit Day, geared for both the novice and experienced nonprofit leader, will focus on the importance of articulating the value of your individual and our collective work to policymakers, the media and the general public. Nonprofit Day 2008, titled "POWER UP: Communicating the Value of Michigan Nonprofits," will take place on September 24 at the Lansing Center in downtown Lansing.

Registration will be available in early July. Save the date and plan to join your fellow nonprofit leaders for the ninth annual Nonprofit Day!

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Learn How Your Nonprofit Can Get Involved in Voter Education and Mobilization Efforts!

The Michigan Participation Project (MPP) will be hosting a series of trainings for 501(c)(3) nonprofits during the month of August, intended to provide participants with an understanding of the legal do's and don'ts of election year activities, ideas for incorporating voter engagement efforts into the work you're already doing, and access to voter education and mobilization materials that can complement your activities.

The following six MPP trainings will be offered:

1. Midland - August 18, 2008, 1:00 p.m. - 4:00 p.m., United Way of Midland County, 220 West Main Street, Suite 100, Midland
2. Detroit - August 19, 2008, 9:00 a.m. - 12:00 noon, Gleaners Community Food Bank of Southeastern Michigan, 2131 Beaufait, Detroit
3. Oakland County - August 19, 2008, 2:00 p.m. - 5:00 p.m., ArtServe Michigan, Riley Broadcast Center, 1 Clover Court, Wixom
4. Lansing - August 20, 2008, 9:00 a.m. - 12:00 noon, Michigan Nonprofit Association, 1048 Pierpont Dr., Suite 3, Lansing
5. Grand Rapids - August 20, 2008, 2:00 p.m. - 5:00 p.m., Fair Housing Center of West Michigan, 20 Hall Street SE, Grand Rapids
6. Traverse City - August 21, 2008, 1:00 p.m. - 4:00 p.m., United Way of Northwestern Michigan, 521 South Union Street, Traverse City

The trainings are free; however pre-registration is required and space is limited. To register, email Allison Squires at asquires@mnaonline.org; please indicate which training you plan to attend and include your name and contact information. All registrants will receive a confirmation within two business days, confirming that their registration has been received.

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Nominations Now Being Accepted for the 2008 Nonprofit Champion Awards

Every year, the Michigan Nonprofit Association presents its Nonprofit Champion Awards to two public servants who have demonstrated extraordinary work in support of the nonprofit sector and the communities nonprofits serve. Awards are selected based on recipients' record of service and proven results in support of Michigan nonprofits at the state or federal level. MNA will present the awards at Nonprofit Day 2008, which will take place on September 24 in Lansing.

MNA is currently accepting nominations for the 2008 Nonprofit Champion Awards. To submit a nomination, download, complete and return this nomination form. (If you have trouble accessing the nomination form, contact Tiffany Aurora at taurora@mnaonline.org or 517-492-2400.) Please note that public servants include members of the executive, judicial, and legislative branches of government.

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