Nonprofit Regulations

Asked August 21, 2020, 11:00 AM EDT

Hello, Are nonprofit organizations in Michigan required by law to have a budget? If so, is the budget required to be made public? (Specifically, I am curious about local Commission on Aging organizations.) Thank you.

Roscommon County Michigan

1 Response

The Michigan Nonprofit Act (Act 162 of 1982 http://legislature.mi.gov/doc.aspx?mcl-act-162-of-1982) does not require an annual budget to be prepared by a nonprofit corporation. However, there are annual reports that must be filed each year which includes financial information that would be included in an annual budget.

In practice, meetings of Commissions on Aging are open to the public, and minutes of those meetings should be available, for those interested in the annual budget.

The Michigan Aging and Adult Services Agency also publishes an annual report which includes the State level budget and information on grants made to local Area Agencies on Aging. The 2019 report is available here: https://www.michigan.gov/documents/osa/2019_ANNUAL_REPORT_DESIGN_679348_7.pdf