DEPARTMENT OF ATTORNEY GENERAL

CONSUMER PROTECTION AND CHARITABLE TRUSTS DIVISION

CHARITABLE TRUSTS

(By authority conferred on the department of the attorney general by sections 6,

7, and 10 of Act No. 101 of the Public Acts of 1961, as amended, and section 52 of

Act No. 380 of the Public Acts of 1965, being SS14.256, 14.257, 14.260, and 16.152

of the Michigan Compiled Laws)

R 14.11 Enforcement of rules.

Rule 1. These rules shall be enforced by the attorney

general

and

his

representatives to protect the interests of the people of this state in the administration,

operation and disposition of the assets of all charitable trusts in this state.

History: 1979 AC.

R 14.12 Registration statements.

Rule 2. A trustee subject to Act No. 101 of the Public Acts of 1961, as amended,

within 2 months after receiving possession or control of property for charitable

purposes, shall file with the attorney general a registration statement on a form

which shall be supplied by the attorney general on request. Such trustee shall also file

with the attorney general a copy of the instrument providing for its title, powers or

duties and an inventory of the assets of the charitable trust.

History: 1979 AC.

R 14.13 Annual reports.

Rule 3. (1) A trustee of a charitable trust subject to Act No. 101 of the Public Acts

of 1961, as amended, which solicits money from the public, within 6 months after the

close of its fiscal year, shall file with the attorney general a copy of its certified audit

report for such year, containing a balance sheet, a statement of receipts and

disbursements, and a list of assets including securities held. In lieu of a certified

audit report, such a trustee may file its sworn statement

setting

forth

such

information in accordance with the form prescribed by the attorney general.

(2) A trustee, except a trustee of a charitable trust which solicits money from the

public, subject to Act No. 101 of the Public Acts of 1961, as amended, shall file with the

attorney general annual periodic written reports, in accordance with the form

prescribed by the attorney general. A copy of the account filed in any court having

jurisdiction of the charitable trust, if the account is substantially the same as such

form, may be filed as an annual periodic report.

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(3) The first annual periodic report of a charitable trust shall cover the first

calendar or fiscal year ending after the trust became subject to such act. The first annual

periodic report shall be due on or before the expiration of 6 months after the close of

the first calendar year or fiscal year after the trust became subject to the act.

Thereafter, subsequent annual periodic reports shall be due on or before the

expiration of 6 months after the close of the charitable trust calendar or fiscal year.

(4) A charitable trust required to file annual periodic written reports with the

attorney general may file in lieu thereof an audit certified as being true and correct

and in accordance with generally accepted accounting principles by a certified

public accountant and containing substantially the information required on the annual

periodic report form of the attorney general.

(5) A statement indicating whether or not a creator of the trust or a contributor to

the trust or a trustee, in his individual capacity, or a person related either by

consanguinity or by affinity to such creator,

contributor or trustee, has entered into any transaction involving the purchase,

sale, transfer or loan of any of the trust's assets, shall accompany the annual

periodic report.

(6) Complete details regarding all transactions in which a trustee, employees of

a trustee, or persons related to a trustee, or related to employees of a trustee, either

by consanguinity or by affinity, have personally benefitted from operating and

management of the trust or received any part of the income or corpus of the trust,

other than the normal and reasonable trustee fee, shall be disclosed in a statement

accompanying the report.

History: 1979 AC.

R 14.14 Suspension of annual reports.

Rule 4. A trustee of a charitable trust may be granted a suspension from the

requirement of filing annual periodic reports on written application supported by good

and sufficient reasons. If a suspension is granted, reports may be required on the

happening of specified events or contingencies or at stipulated future report

dates. Ordinarily a suspension will not be granted when reports on the operation

of the charitable trust are required to be made to a court or to other

governmental agencies.

History: 1979 AC.

R 14.15 Investigations.

Rule 5. Either the attorney general or an assistant attorney general designated by

the attorney general may hear information

under

oath

and receive books,

memoranda, papers, documents of title and evidence of assets, liabilities, receipts or

disbursements produced pursuant to an order of the attorney general issued by the

attorney general as provided by the act.

History: 1979 AC.

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R 14.16 Inspection of records.

Rule 6. The charitable trust register, copies of instruments and the reports filed

with the attorney general shall be available for inspection during regular business hours

at the charitable trust division of the office of the attorney general in Lansing,

Michigan, subject to the following requirements:

(a) An individual desiring to inspect the register, copies of instruments and

the reports filed with the attorney general shall submit a request in writing setting forth

his name, address and indicating his interest in the charitable trust records desired to

be reviewed. If such request is approved by the attorney general, the authorized

review of the register, copies of instruments and reports filed with the attorney

general shall be made in the presence of the attorney general or his representative.

(b) If the charitable trust is to be used for both private and charitable

purposes, only those portions of the documents pertaining to charitable purposes, and

only if such charitable purposes have matured and come into being, shall be available

for public inspection.

History: 1979 AC.

R 14.17 Repeal.

Rule 7. Sections 1 to 5 of the rules relating to charitable trusts, being R 14.1 to R

14.5 of the Michigan Administrative Code, and appearing on pages 2757 to 2759 of the

1963 Annual Supplement to the Code, are repealed.

History: 1979 AC.

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