Page 326 - Washington Nonprofit Handbook 2018 Edition

in exchange for greater freedom to engage in lobbying efforts and are often
exempt under 501(c)(4) of the Code.

Solicitation
Any oral or written request for a contribution, or any attempt to make a sale in
connection with a charitable purpose

Tax-Exempt
An organization exempt from federal income taxation and organized for
specific charitable, educational, scientific, religious or other specific purposes
described in the Internal Revenue Code.

Trademark
A logo, business or product name, tag line, or other item that identifies the
source of origin for a good.

Trade Secret
Any information that derives economic value from not being known.

Trustee
A nonprofit corporation fits the definition of a trustee if it is either (1) formed
for the administration of a charitable trust or (2) holds assets that can only be
used for charitable, religious, eleemosynary, benevolent, educational or similar
purposes. The Charitable Trust Act empowers the attorney general to enforce
the terms of these trusts as the statutory representative of its public
beneficiaries.

Unrelated Business Income
An exempt organization should consider income generated from a trade or
business activity unrelated business income (UBI) if the activity is regularly
carried on and if it is also not substantially related to the charitable purposes
of the organization. Such income is subject to the federal UBI tax.

Voluntary Dissolution
A process called voluntary dissolution is available to nonprofits when the
directors and members, if any, believe that it is in the best interest of the
organization to discontinue its existence as a legal entity.

Volunteer
A person who performs services for an organization without any expectation
of, or receipt of, compensation for his or her services.

WASHINGTON NONPROFIT HANDBOOK -315- 2018