Posted on June 13, 2006

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Council on Foundations Voices Opposition to Michigan Bill

The Council on Foundations has announced its opposition to a bill introduced in the Michigan legislature that would effectively force foundations incorporated in the state to make at least half of their grants to Michigan charities.

Although some donors legally restrict the scope of grantmaking when incorporating their foundations, others create foundations with broad charitable purposes to provide their boards with more flexibility to meet unanticipated needs and challenges. The council is collaborating with its members in Michigan and the Council of Michigan Foundations to inform legislators how the Supervision of Trustees for Charitable Purposes Act (HB 6153) and another anticipated proposal could adversely affect the state's philanthropic sector.

Council president and CEO Steve Gunderson said the bill, if enacted, would have a chilling effect on philanthropy in Michigan and could drive foundations to relocate to other states. "One of the great strengths of America's philanthropic sector is its independence," said Gunderson. "We believe that foundations should always respect the intent of their donors, but we do not think it is right for a state legislature to dictate that intent to a foundation in a narrow and self-interested effort to grab more dollars for one state or cause over another."

“Council Opposes Michigan Bill That Threatens the Independence of Foundations.” Council on Foundations Press Release 6/09/06.

Primary Subject: Philanthropy and Voluntarism
Location(s): Michigan

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