The Evergreen State Society

State of Washington

Requirements and Resources for Nonprofit Organizations

Combined Fund Drive (Department of Personnel)   hr.dop.wa.gov/cfd/cmpnovrw.gif

    Washington state employees contribute millions of dollars each year to over 1,400 charities throughout the state. Charities may register for the campaign by documenting eligibility on forms available through this office.

Corporations Division (Office of the Secretary of State)  http://www.secstate.wa.gov/

The Division is located in the James M. Dolliver Building at 801 Capitol Way South in Olympia.

Nonprofit Corporations

    Forming a nonprofit corporation involves submitting a form, along with the required fee and copies of the proposed charter documents, to the Corporations Division.
    A preprinted "Annual Report" form is normally sent to each registered corporation each year. This form must be returned to maintain the corporation's standing in Washington state.

    The Washington Nonprofit Corporations statute itself is available online.

Charitable Trusts

    Organizations which hold money or other property in reserve for a charitable purpose must register and report annually. There are minimum time periods and threshold amounts. The annual reporting form is normally sent automatically to registered trusts.

Charitable Solicitations

    Organizations which employ paid staff or consultants (including fundraisers) and all volunteer organizations with more than $25,000 per year in revenues from any source who make any sort of charitable appeal to the public must register and report annually; certain religious and political organizations are exempt. The annual reporting form is normally sent automatically to
registered organizations. Organizations that file a federal return using Form 990 (but not 990-EZ) file a copy of that return; its financial information is used for the state reporting as well.
    Information from these filings is provided to the public through the Charities Hotline: 1-800-332-GIVE and on the Secretary of State's webpage at www.secstate.wa.gov/charities/.

Commercial Fundraisers and Fundraising Campaigns

    Individuals and firms who solicit on behalf of nonprofit organizations and/or receive the proceeds of charitable appeals for later delivery to nonprofit organizations must register and report annually and on a campaign-by-campaign basis.
    A vendor making a charitable appeal in the course of offering a product for sale (a promise that "all profits" or "a portion of the proceeds" will be donated, for example), is a commercial co-venturer and must  register and report as well.
    The current registration status and certain other information for any commercial fund raiser may be obtained by calling 1-800-332-GIVE (The Charities Hotline).
 

Department of Employment Security   www.wa.gov/esd

   There are many local offices; check the state government listings in the telephone book.

Unemployment Insurance

    Periodic (quarterly or monthly) reporting forms for employment, wages and unemployment insurance premiums are sent automatically to all registered employers. Initial registration is part of the Master Licensing process; see Department of Licensing.

Gambling Commission   www.wsgc.wa.gov

    Detailed rules apply to the conduct of raffles and other games of chance; licenses are required under some circumstances. Contact the Gambling Commission for copies of applicable instructions and forms prior to undertaking any gambling-related activity.

Department of Health   http://www.doh.wa.gov/

    Licenses health related facilities, programs and workers.

Heritage Resource Center (Washington State Historical Society) www.wshs.org

    Offers workshops and technical assistance for museums and related nonprofit organizations; see http://www.wshs.org/text/res_hrc.htm. 

Housing Finance Commission   www.wshfc.org/

     The Washington State Housing Finance Commission Nonprofit Facilities Program assists Washington nonprofits to fulfill their mission by providing access to below-market rate loans to fund a wide range of projects.

Insurance Commissioner   www.insurance.wa.gov/

Department of Labor and Industries   www.wa.gov/lni

   There are many local offices; check the state government listings in the telephone book or call 1-800-547-8367

Workers Compensation

    Periodic (quarterly or monthly) reporting forms for workers compensation (on the job injuries) premiums are sent automatically to registered employers. Initial registration is part of the Master License process; see Department of Licensing.

Department of Licensing   http://www.dol.wa.gov

    PO Box 9020
    Olympia, WA 98507-9020
    (360) 902-3600

Master Licensing Service

    Newly formed organizations complete the initial registration form which is used to assign a Uniform Business Identifier (UBI) and to supply certain common information to many agencies of state government. This same form is used to update information on file with the Department of Licensing and other agencies when necessary.

Special licenses and permits

    Depending on programs and activities, professional and service licenses may be required. Some of these licenses are indicated on the Master License registration form and others require separate documentation of qualifications. Health-care facilities and professionals are licensed by the Department of Health.

Liquor Control Board   http://www.liq.wa.gov/

    PO Box 43075
    Olympia, WA 98504-3075
    (360) 753-6262
    A banquet license is required before sales of liquor by the drink may be made at a private function. Licenses are required for other activities involving liquor. The necessary forms and instructions can be obtained at any Washington State Liquor Board retail outlet or from the office in Olympia.

Public Disclosure Commission   pdc.wa.gov

    PO Box 40908
    Olympia, WA 98504-0908
    (360) 753-1111

   Individuals and organizations that make any sort of expenditutes for the purpose of attempting to influence the passage or defeat of any legislation or rule by the state legislature or a state agency are required to register as lobbyists. The PDC also enforces rules about every sort of political advertising which apply to individuals and organizations throughout the state.

Department of Revenue   dor.wa.gov

    PO Box 47478
    Olympia, WA 98504-7478
    (360) 753-5540

   Many local offices; check the state government listings in the telephone book or call 1-800-647-7706.

Taxes

    Sales tax must be collected on all sales of services and merchandise unless exempted by law. Suppliers must be given a resale certificate at the time of purchase for any merchandise which will be resold; there are penalties for failure to collect and for evasion of sales taxes.
    Use taxes must be paid on all taxable items which are consumed or put into service in Washington state without payment of retail sales tax.
    Business and Occupations tax is due on gross receipts from most activities; gifts and donations (including grants and contracts under certain conditions) are not taxable; some membership dues are also exempt.
    Periodic (quarterly or monthly) tax returns are sent automatically to all registered businesses. The tax return has spaces for entering deductions for nontaxable revenues and for calculating any use taxes which may be due. Initial registration is part of the Master Licensing process; see Department of Licensing.
    Real estate taxes are due on all property not exempt by law. Use Revenue Form 630001-1 to apply for exemption for real property used for exempt purposes; landlords may be able to secure a reduction in property taxes for leased property used for exempt purposes. Recertification of property tax exemptions is required every second year.

Local (County and City) Registrations and Taxes

    Many Washington counties and cities require business licenses and other registrations for nonprofit organizations with facilities or operations within their borders. In general, county and city auditors will be able to provide information on such requirements. Contact the Department of Licenses In the City of Seattle [(206) 684-8484] or King County [(206) 296-3504].
    Personal property taxes may be due on office equipment and other tangible property owned and used within Washington state. Holders of county or city business licenses will normally receive tax returns automatically.
    The following are the Washington cities with B&O taxes that may apply to nonprofit activities:

Aberdeen

Bellingham

Cosmopolis

Hoquiam

Long Beach

North Bend

Pacific

Roy

Shelton

Tacoma

Westport

Bainbridge Island

Black Diamond

DuPont

Kelso

Longview

Ocean Shores

Rainier

Ruston

Snoqualmie

Tumwater

Yelm

Bellevue

Bremerton

Everett

Lacey

Mercer Island

Olympia

Raymond

Seattle

Sumner

Vancouver

September 29, 2001

Federal Tax Exemption

    Internal Revenue Service Publication 557 Tax Exempt Status for Your Organization describes the process for establishing eligibility for exemption from federal corporate income taxes. Some nonprofit corporations may be exempt from other federal taxes; an attorney or tax advisor can give advice on these questions as well as Washington state's taxes and regulations as they may apply to nonprofit organizations. To obtain IRS publications, call (800) 829-3676 or visit www.irs.ustreas.gov/prod/forms_pubs/pubs.html.

Note: This guide was prepared by The Evergreen State Society, PO Box 20682, Seattle, WA 98102-0682; http://www.tess.org/. It is intended for general information purposes only and it may omit important tax obligations or other requirements pertaining to some organizations. Please use it for guidance only and consult a qualified professional advisor or the appropriate federal, state or local officials for detailed information with respect to any specific situation.

Permission is hereby granted to reprint this information for any noncommercial purpose provided this notice is included.  ©1997, 2003 The Evergreen State Society, Seattle, Washington, USA.

Last updated:  September 29, 2001

(minor revisions, December 19, 2003)