Page 148 - Washington Nonprofit Handbook 2018 Edition

State Charity Forms website https://www.sos.wa.gov/charities/allforms.aspx#
charity.

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, cannabis donations or receiving money from a cannabis business. Nonprofit
organizations may receive financial donations from a retailer or producer (grower) of
cannabis if there is no advertisement associated with the donation. Because cannabis is
illegal at the federal level, proceed with caution if the donation is significant enough to be
claimed on your organization’s IRS Form 990.

Charitable organizations must provide the information requested by the
Secretary of State on an annual basis, through an annual filing with the Secretary of
State, Charities division.

TIP:

Make sure you allow adequate time for your charitable solicitations registration to arrive by
the due date. Charitable Solicitations registration filings are done by post mail and must
be received by the annual due date. There is a late fee for registrations that are received
late. There are no exceptions.

Among other things, nonprofits must provide the contact information for
officers accepting responsibility for the charitable organization, the names of the
three highest compensated officers or employees, and financial information,
including revenue and the total amount applied to charitable purposes, expenses,
and solicitation information. See RCW 19.09.075; WAC 434-120-105. In addition to
the standard financial reporting required pursuant to RCW 19.09.075, for charitable
organizations with more than one million dollars in annual gross revenue averaged
over the three previously completed accounting years:

• If annual gross revenue is one million dollars to three million dollars
averaged over the three previously completed accounting years, the
organization must make available to the public upon request (or make

it accessible to the public on the internet) the organization’s federal
financial reporting form (e.g., IRS Form 990, 990PF, 990T) prepared by

WASHINGTON NONPROFIT HANDBOOK -137- 2018