Businesses: nonprofit corporations; power of nonprofit corporations to spend in elections or ballot issues; revoke. Amends secs. 261, 271, 821, 1012 & 1041 of 1982 PA 162 (MCL 450.2261 et seq.) & adds sec. 261a. TIE BAR WITH: SB 1085’26, SB 1087’26
Key claim: Michigan SB 1086 would amend the Nonprofit Corporation Act to revoke the power of nonprofit corporations to spend money in elections or on ballot issues.
Abstract
(SB1086 · 103rd Legislature) Businesses: nonprofit corporations; power of nonprofit corporations to spend in elections or ballot issues; revoke. Amends secs. 261, 271, 821, 1012 & 1041 of 1982 PA 162 (MCL 450.2261 et seq.) & adds sec. 261a. TIE BAR WITH: SB 1085’26, SB 1087’26 Latest action (2026-07-03): Senate Co-sponsor(s) Named: Mallory Mcmorrow
Why this matters
SB 1086 signals bicameral momentum to strip nonprofit corporations of the statutory power to spend in Michigan elections or on ballot issues, matching a House companion (HB 6217) and coordinated Senate bills targeting LLCs and business corporations. For nonprofits operating in Michigan — including 501©(4)s and trade-associated entities — this would materially narrow permissible political expenditures under state corporate law, shifting political spending toward individuals and PACs.