[Michlib-l] Resources for working with challenging Friends Group

[Membiela, Clare (MDE)]

Hello Elizabeth:

As a Non-profit Michigan corporation, and a 501©(3) entity, the friends group is a separate entity from the library.
A corporation is governed by its articles of incorporation and its bylaws. The library board has no input or control over a friends group.

Unless the bylaws or articles of incorporation state differently, as long as the company complies with the annual reporting requirements for Michigan Nonprofit corporations and with the IRS annual reporting requirements for 501(c)(3) entities, it is considered a legally active organization.

In Michigan a charity such as a friends group must also register with the Attorney General under the Charitable Organizations and Solicitations Act https://www.michigan.gov/ag/about/charitable-trust  in order to legally solicit donations. (the friends group may be exempt from annual reporting to the AG if they meet certain criteria).


A check of the IRS online entity system shows the friends of Harper Woods as being in good standing as a 501(c)(3):
https://apps.irs.gov/app/eos/
https://apps.irs.gov/app/eos/details/

General information regarding 501(c)(3) entities can be found:
https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations

The Michigan Corporation look up maintained by the Department for Licensing and Regulatory Affairs (LARA) shows the friends as a non-profit corporation in good standing (you can also pull the company filings such as articles of incorporation here):
https://cofs.lara.state.mi.us/CorpWeb/CorpSearch/CorpSummary.aspx?token=nBxILn58HwVtv4JMRDwTm1cWblopjmzIgq3FCQzRMH7Z0mRAdeXC1KT64KiXTBzJnaATOHRBXiqL1OhvBrrSymohLHRmMeqxKiia/pzNwTUPoR2+CIVASps1P+Z6hu6yvuJbCO/HEWlJBHWvLrx6h47JLvm1TIxP85NwmHaLIS5t7qU3G6i7TRz+IRY+zhoDwSUVOqD03fou2TF9C+tGoaoI+gkjtLItMtjXKAHGFc8mATMh9D14BHGfi7mcFBiS8MOI0yq9zWdkIJ9xPu+vu8ifjfslLib9+6Tslbemi7OWlDOcWU2XBLUtuxiVu2ffqYM6PS+m+iFjz0bdAlnF+2L1rQeu456K

Gen link for LARA corp search site
https://cofs.lara.state.mi.us/SearchApi/Search/Search


Money raised by the friends belongs to the friends and not to the library. Unless there is a written agreement between the two entities that specifies expectations, the friends bylaws and articles of incorporation would be the guidance here.

If there are issues relating to the operation of the friends group, this is a matter for the library board to discuss with their attorney for advice and assistance, since depending on the exact situation, there could be several legal issues.

I hope this is helpful,
Sincerely,
Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.

“The dissemination of ideas can accomplish nothing if otherwise willing addressees are not free to receive and consider them. It would be a barren marketplace of ideas that had only sellers and no buyers.” Lamont v. Postmaster General, 381 U.S. 301.

Michigan’s Top 10 Strategic Education Plan<https://www.michigan.gov/mde/resources/michigan-top-10-strategic-education-plan> provides focused direction to drive educational achievement in support of all learners.

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From: Michlib-l <michlib-l-bounces at mcls.org> On Behalf Of Elizabeth Campion via Michlib-l
Sent: Thursday, April 27, 2023 3:00 PM
To: Michlib-l at mcls.org
Subject: [Michlib-l] Resources for working with challenging Friends Group

CAUTION: This is an External email. Please send suspicious emails to abuse at michigan.gov<mailto:abuse at michigan.gov>


Hi!
I'm looking for information on the requirements of a Friends of the Library Group to be deemed active. I realize some groups have bylaws that require regular meetings, treasurer's reports, etc.
But what if a group does not have bylaws. As a 501(c)3 are they required to have regular meetings? What if they don't?
What if a group is raising money through used book sales in the library but has not given any of the proceeds to the library in years?

What other requirements might there be for a group to maintain its status.


Thank you,
Elizabeth Campion, President
Board of Trustees
Harper Woods Public Library


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