Michigan Community Capital

“Another non-profit organization has been contracted to perform loan servicing and bookkeeping for michigan community capital. In addition, a company has been contracted to perform strategic advisor services for michigan community capital.”

“990 presented to board and executive committee for review.”

“Annual meeting requires affirmation of conflicts policy and all meetings require disclosure of personal conflict. If it is determined that a board member has a conflict, that board member abstains from voting on the issue where the conflict exists.”

“The president's performance review is completed by the board chair. He presents to the board at the june board meeting, annually including a recommendation for raise/bonus. The president leaves the room during that portion of the board meeting.”

“Michigan community capital does not make its governing documents, conflict of interest policy, and financial statements available to the public.”

“Underwriting fee: program service expenses 31,875. Management and general expenses 0. Fundraising expenses 0. Total expenses 31,875. Asset management fee: program service expenses 153,700. Management and general expenses 0. Fundraising expenses 0. Total expenses 153,700. Consultant fee: program service expenses 80,000. Management and general expenses 0. Fundraising expenses 0. Total expenses 80,000. Application fee: program service expenses 65,023. Management and general expenses 0. Fundraising expenses 0. Total expenses 65,023.”

“Gain on investment in subsidiary 153,057.”

“During 2017, the organization established mcc property risk management services llc (mcc prms) which collects property and casualty and professional liability premiums from property managers and then remits those premiums to insurance companies. Irc section 501(m) indicates that certain organizations that provide commercial-type insurance are not exempt from tax. Section 501(m)(3) further indicates that commercial type insurance does not include insurance provided at substantially below cost to a class of charitable recipients. The organization believes that offering these types of products at a discount to property managers of low-income housing units is in line with its mission of lending and investing in income diverse, race diverse, and occupationally diverse communities to counter gentrification and create upward mobility and wealth building opportunities for underserved individuals and families of michigan. During 2018, mcc is the sole member of mcc prms. Mcc prms wholly owns mcc property insurance company, inc (mcc pic), a captive insurance company. Mcc prms is a disregarded entity for tax purposes, therefore the activity of mcc prms is reported on the organization's form 990 and 990t. While the organization believes that offering these products is in line with its charitable purpose, it has concluded that it will take the more conservative approach to report all insurance activities on form 990t. As the volume of insurance premiums is more than insubstantial as compared to the organization's gross receipts, which could put the organization's tax-exempt status at risk, it was concluded to convert mcc property risk management services llc into mcc property risk management services, inc. (the corporation). This conversion took place on january 1, 2019. For tax year 2019, the newly converted entity will be filing its own tax return and its activity will no longer be included in the organization's form 990 or 990t. Also, as of january 1, 2019 mcc pic is wholly owned by mcc. As of that date, pic and prms have a brother/sister relationship.”