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.

R 14.16 Inspection of records.

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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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