Michigan
Overall Free to Give Index 4.11/10
Rank 38th
Category Score (0–10) Rank (50 states)
Overall Free to Give Index 4.11 38th
Broad Policy Environment 4.85 20th
Nonprofit Freedom 4.97 30th
Donor Confidence 2.50 45th

Highlights

  • Moderately strong broad policy environment: Michigan ranks 20th in the Broad Policy Environment. This is mostly driven by its relative tax competitiveness and slightly better than average occupational licensing burdens. On economic freedom, however, it performs worse (31 out of 50).
  • Hostile legislative environment: Michigan has a history of introducing legislation and initiatives that aim to limit DAF activity and force donor disclosure.
  • Moderately weak regulatory environment: Michigan ranks 30th in Nonprofit Freedom, with audit requirements and burdensome paid solicitation requirements.
  • Poor donor confidence: Michigan ranks 45th in Donor Confidence, offering no donor privacy protections, no donor standing, and an unpredictable regulatory environment.

Detailed Scorecard

1. Broad Policy Environment

1A. Occupational Freedom (rescaled 0 to 10) 3.50
1B. Tax Competitiveness (rescaled 0 to 10) 4.64
1C. EFNA (0 to 10) 6.42

2. Nonprofit Freedom

2A. Charitable Startup Regulations

Requires charitable registration? Yes
Top Registration Fee $0.00
Minimum Registration Fee $0.00
Top Incorporation Fee $20.00
Minimum Incorporation Fee $20.00

2B. Charitable Reporting Regulations

Requires Annual Report? Yes
Top Annual Fee $0.00
Minimum Annual Fee $0.00
Requires Additional Corporate Filings Yes
Other Fees $20.00
Tiered Fee Structure No
Overlapping Regulators No

2C. Paid Solicitor Requirements

Commercial Fundraisers Must Register with the State Yes
Paid Solicitor Registration Fee $20.00
Paid Solicitor Renewal Fee $20.00
Surety Bond for Professional Fundraisers $10,000.00
Must Paid Solicitors Required to Report to the State in Order to Start Fundraising? Yes
Fundraising Consultant Registration Required No
Annual Financial Reporting by Commercial Fundraisers Required Yes
Must File Contracts Between Charities and Commercial Fundraisers Yes
Individual solicitors employed by professional fundraisers must register separately? Yes

2D. General Audit threshold (revenue)

General Audit threshold (revenue) $575,000.00

3. Donor Confidence

3A. State has Never Introduced Disclosure No
3B. State has Privacy Law No
3C. State gives Donors Standing No
3D. State has UPMIFA Protections Yes
3E. Donations are Generally Deductible No
3F. General Sales Tax Exemption Yes
3G. State has Never Proposed DAF Restrictions No
3H. New Regulations Require Legislative Approval No