Page 149 - Washington Nonprofit Handbook 2018 Edition

a professional in the business of preparing such forms or an audited
financial statement prepared by an independent certified public
accounting for the preceding accounting year.

• If annual gross revenue is more than three million dollars averaged
over the three previously completed accounting years, the
organization must make available in paper form to the public upon
request (or make it accessible to the public on the internet) the
organization’s independent, third-party audit of its financial records for
the preceding accounting year. See RCW 19.09.541 .

If a charitable organization has existed for less than three years, the
calculation of gross revenue is based on the number of years of existence. See WAC
434-120-107(1). The requirement to obtain an audited financial statement
prepared by an independent certified public accountant may be waived by the
Charities Program of the Secretary of State if the organization receives $500,000 or

less in cash averaged over the prior three accounting years and complies with the
reporting requirements for organizations with less annual gross revenue or if the
organization can demonstrate that it reached the three-year average of more than
three million dollars in gross revenue because of unusual or nonrecurring revenue
received in a single year. See WAC 434-120-107(2) .

All charitable organizations must register before conducting solicitations.
Charitable organizations must renew their registrations and file reports annually.
Conducting solicitations without current registration is a violation of the CSA and
may result in legal action. See RCW 19.09.065.

c. Regulation of Commercial Fund-Raisers Under the CSA

A “commercial fund-raiser” under the CSA means a person or entity that
(1) solicits or receives contributions for or on behalf of any charitable organization
or charitable purpose in exchange for compensation or other consideration; or
(2) is in the business of conducting charitable solicitations or receiving contributions
on behalf of others (or who say they do this) in exchange for compensation or other
consideration. See RCW 19.09.020(5).

“Fund-raising counsel,” “consultants,” and commercial coventurers are not
commercial fund-raisers. “Fundraising counsel” or “consultants” are retained by
charitable organizations under written agreement to provide services such as
advice and counseling regarding charitable solicitation activities, and do not engage

in any fundraising activities on behalf of others. See RCW 19.09.020(10).

WASHINGTON NONPROFIT HANDBOOK -138- 2018