Washington Code 82.04.3651 – Exemptions — Amounts received by nonprofit organizations for fund-raising activities
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(1) This chapter does not apply to amounts received from fund-raising activities by nonprofit organizations, as defined in subsection (2) of this section, and libraries as defined in RCW 27.12.010.
Terms Used In Washington Code 82.04.3651
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
(2) As used in this section, a “nonprofit organization” means:
(a) An organization exempt from tax under section 501(c) (3), (4), or (10) of the federal internal revenue code (26 U.S.C. § 501(c) (3), (4), or (10));
(b) A nonprofit organization that would qualify under (a) of this subsection except that it is not organized as a nonprofit corporation; or
(c) A nonprofit organization that meets all of the following criteria:
(i) The members, stockholders, officers, directors, or trustees of the organization do not receive any part of the organization’s gross income, except as payment for services rendered;
(ii) The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and
(iii) The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office.
(3) As used in this section, the term “fund-raising activity” means soliciting or accepting contributions of money or other property or activities involving the anticipated exchange of goods or services for money between the soliciting organization and the organization or person solicited, for the purpose of furthering the goals of the nonprofit organization. “Fund-raising activity” does not include the operation of a regular place of business in which sales are made during regular hours such as a bookstore, thrift shop, restaurant, or similar business or the operation of a regular place of business from which services are provided or performed during regular hours such as the provision of retail, personal, or professional services. The sale of used books, used videos, used sound recordings, or similar used information products in a library, as defined in RCW 27.12.010, is not the operation of a regular place of business for the purposes of this section, if the proceeds of the sales are used to support the library.
NOTES:
Effective date—2010 c 106: See note following RCW 35.102.145.
Effective date—1999 c 358 §§ 1 and 3-21: “Sections 1 and 3 through 21 of this act take effect August 1, 1999.” [ 1999 c 358 § 22.]
Findings—1998 c 336: “The legislature finds that nonprofit educational, charitable, religious, scientific, and social welfare organizations provide many public benefits to the people of the state of Washington. Therefore, the legislature finds that it is in the best interests of the state of Washington to provide a limited excise tax exemption for fund-raising activities for certain nonprofit organizations.” [ 1998 c 336 § 1.]
Sales tax exemptions: RCW 82.08.02573.