Page 125 - Washington Nonprofit Handbook 2018 Edition

report the donation on IRS Form 8283. If the recipient organization disposes of the
property within three years after its receipt, the organization must file IRS Form
8282, indicating the property’s sale price, and must provide a copy to the donor.

Cannabis and donations: It is important to remember that although use and sale of
recreational marijuana is legal under Washington State law, it is illegal under Federal law.
Nonprofits with 501(c)(3) tax-exemption should be careful not to be in violation of any
federal laws, this includes being a part of any cannabis transactions including, but not
limited to, donations of cannabis or money from a cannabis business. You may receive a
financial donation from a retailer or producer (grower) of cannabis if there is no
advertisement associated with that donation. Remember, cannabis is illegal at the federal
level, so you should be careful if the donation is significant enough to be claimed on your
IRS Form 990.

WASHINGTON NONPROFIT HANDBOOK -114- 2018