Page 157 - Washington Nonprofit Handbook 2018 Edition

As discussed in the previous chapter, Washington has a Charitable
Solicitations Act, RCW 19.09, that requires registration for nonprofits that solicit
contributions in Washington State. The Washington Charitable Solicitations Act also
has and exemptions to those requirements for different types and size of nonprofit
organization. Please see Chapter 45, above for more about Washington State rules.

Most other states have similar charitable solicitation rules to Washington,
including registration requirements and exemptions (exceptions) to those
requirements. See the IRS website (https://www.irs.gov/charities-non-profits/state-
links) for links to other state requirements. State agencies may take action against
persons or entities that fail to properly register or otherwise comply with
solicitation requirements.

Nonprofits that solicit for donations nationally, will likely have to register in
every state. There are service providers that offer state registration services.

If a nonprofit has not solicited in another state, but receives a donation from
an individual in that state, under the “Charleston Principles” outlined below,
industry standards do not require registration in that state.

If the nonprofit is engaging in fundraising that could be construed as
soliciting nationwide, via the internet or otherwise, it is a “safe” option for a charity
to decide to register nationwide. There is no single portal for registering in every
state, although one is being considered by the National Association of State
Charities Officials (see http://www.mrfpinc.org) and there are services that can
assist with registrations.

Importantly, registration may bring to light other compliance obligations. For
example, a registration may require a person or entity to pay annual filing fees,
submit copies of fundraising contracts or summary of the terms of contracts,
provide audited financial statements, make certain solicitation disclosures, qualify
to do business, obtain a registered agent, or otherwise comply with the state’s
solicitation laws. In particular, many states have regulations that affect solicitation
conduct (such as limits on the time of day when individuals may be approached
with a request for a contribution); the person or entity who will benefit from any
contribution is generally considered responsible for ensuring compliance with such
rules whether or not it conducts other charitable activities in the state. Even if a
person or entity is not required to register with a state, states retain the right to
enforce their consumer protection and charitable solicitation laws against
deceptive charitable solicitations such as fraud or misuse of charitable

WASHINGTON NONPROFIT HANDBOOK -146- 2018