Page 145 - Washington Nonprofit Handbook 2018 Edition

PART 7. FUNDRAISING: KEY COMPLIANCE CONSIDERATIONS

CHAPTER 45. Charitable Solicitation in Washington

a. Overview

Washington, like other states, regulates persons and entities requesting
contributions to support a charitable purpose. Charitable solicitation in
Washington is governed by the Charitable Solicitations Act (“CSA”), RCW 19.09 and
the Consumer Protection Act (“CPA”), RCW 19.86. The CSA regulates the activities of
persons and entities that make almost any type of charitable appeal to the public,
including persons and entities requesting or collecting funds for a charitable
organization or purpose (or who say they do this) and businesses that say they are
contributing to a charitable organization based on purchases of goods or services.
The CPA is a statute that protects consumers from unfair or deceptive acts or
practices in trade or commerce, which includes unfair or deceptive acts or practices
in the context of charitable solicitations. Violations of the CSA are per se violations
of the CPA. A person or entity that violates the CSA may face a civil action alleging
violations of both statutes.

b. Regulation of Charitable Organizations Under the CSA

The CSA regulates charitable organizations, to provide the public information
about charitable organizations that engage in fundraising in order to prevent
deceptive and dishonest practices and the improper use of contributions that are
intended for charitable purposes. The CSA requires charitable organizations to
(1) register and file annual reports with the Charities Program of the Secretary of

State, and (2) make certain disclosures when soliciting for charitable contributions.

(i) Definition of “Charitable Organization”

A “charitable organization” under the CSA is an entity that solicits or collects

contributions from the general public where the contribution is, or is purported to
be, used to support a charitable purpose. A “charitable organization” does not
include commercial fund-raisers, commercial coventurers, or fund-raising counsel.
See RCW 19.09.020(2). Churches and their integrated auxiliaries, and political
organizations are not charitable organizations, but they must comply with RCW
19.09.100(15) through (18). See RCW 19.09.020(2). (These statutory provisions bar
deceptive solicitations, govern how and when solicitations and collections occur,
and forbid any form of harassment of donors and potential donors.) Religious
organizations that are not churches or their integrated auxiliaries are charitable

WASHINGTON NONPROFIT HANDBOOK -134- 2018