Government Agencies

Washington state employees contribute millions of dollars each year to over 1,400 charities throughout the state. Charities may register for the campaign by documenting eligibility on forms available through the Corporations Division of the Office of the Secretary of State http://www.sos.wa.gov/corps.

Nonprofit Corporations

Forming a nonprofit corporation involves submitting a form, along with the required fee and copies of the proposed charter documents, to the Corporations Division.

A preprinted "Annual Report" form is normally sent to each registered corporation each year. This form must be returned to maintain the corporation's standing in Washington state.

The Washington Nonprofit Corporations statute itself is available online.

Charitable Trusts

Organizations which hold money or other property in reserve for a charitable purpose must register and report annually. There are minimum time periods and threshold amounts. The annual reporting form is normally sent automatically to registered trusts.

Some charitable trusts elect to have information about their grant-making requirements and activities published in the Washington State Charitable Trust Directory.  The 2007-2008 edition is available for purchase online or by regular mail in a variety of formats; Hardbound Booklet ($27), CD ($25), or a downloadable pdf file ($25).

Booklets and CDs will be sent via US Postal Service. The downloadable and CD version are available in a PDF format. The downloadable version is available online and provided electronically upon completion of payment. (Visa and MasterCard accepted.)  To order online, visit: 2007-2008 Charitable Trust Directory available for purchase online »

To order by mail, send a written request including which version you prefer (CD or Hardbound) and provide a mailing address and daytime phone number. Attach a check or money order made payable to the Secretary of State and allow 2-3 weeks for delivery.

Charitable Solicitations

Organizations which employ paid staff (including fundraisers) and all volunteer organizations that have raised more than $25,000 per year in revenues  and make any sort of charitable appeal to the public must register and report annually; churches and political organizations are exempt.  The annual renewal form is automatically mailed to registered organizations approximately 60 day before the renewal deadline. Organizations that file a federal informational return using Form 990, 990EZ, 990PF) also file a copy of the return.

Registration with the Charities Program is separate and in addition to any corporate filing requirements pursuant to the Nonprofit Corporations Act.  Charities information and registration forms are available through the Charities Hotline: 1-800-332-GIVE and on the Secretary of State's Web page at www.secstate.wa.gov/charities/.

Commercial Fundraisers and Fundraising Campaigns

Any individual or entity that solicits or receives contributions on behalf of charitable organization must register and report annually to the Charities Program.  Additional information and registration forms are available by calling 800-332-4483 or visiting the Charities Web page at www.secstate.wa.gov/charities/

Department of Employment Security

There are many local offices. Check the website for more information. www.wa.gov/esd

Unemployment Insurance

Periodic (quarterly or monthly) reporting forms for employment, wages and unemployment insurance premiums are sent automatically to all registered employers. Initial registration is part of the Master Licensing process; see Department of Licensing.

The publication Unemployment Insurance Tax Information is available on request.

Gambling Commission

Detailed rules apply to the conduct of raffles and other games of chance; licenses are required under some circumstances. Contact the Gambling Commission for copies of applicable instructions and forms prior to undertaking any gambling-related activity. www.wsgc.wa.gov

Department of Health

Licenses health related facilities, programs and workers. More information here: http://www.doh.wa.gov/

Heritage Resource Center

(Washington State Historical Society) www.wshs.org

Offers workshops and technical assistance for museums and related nonprofit organizations; see http://www.wshs.org/text/res_hrc.htm.

Housing Finance Commission

The Washington State Housing Finance Commission Nonprofit Facilities Program assists Washington nonprofits to fulfill their mission by providing access to below-market rate loans to fund a wide range of projects. More information can be found here: www.wshfc.org/.

Insurance Commissioner

An Insurance Guide for Nonprofit Organizations in the State of Washington (1996) is available online at http://www.insurance.wa.gov/readonline/nonorgs.html or by request. More information can be found here: www.insurance.wa.gov/

Department of Labor and Industries

There are many local offices. Learn more at the site, www.wa.gov/lni, or call 1-800-547-8367

Workers Compensation

Periodic (quarterly or monthly) reporting forms for workers compensation (on the job injuries) premiums are sent automatically to registered employers. Initial registration is part of the Master License process; see Department of Licensing.

The publication Employers Guide to Industrial Insurance is available on request.

Department of Licensing

http://www.dol.wa.gov

Master Licensing Service

Newly formed organizations complete the initial registration form which is used to assign a Uniform Business Identifier (UBI) and to supply certain common information to many agencies of state government. This same form is used to update information on file with the Department of Licensing and other agencies when necessary.

Special licenses and permits

Depending on programs and activities, professional and service licenses may be required. Some of these licenses are indicated on the Master License registration form and others require separate documentation of qualifications. Health-care facilities and professionals are licensed by the Department of Health.

The publication Starting and Licensing Your Business in Washington State is available on request, and on the WWW at www.dol.wa.gov/mls/startbus.htm.

Liquor Control Board

http://www.liq.wa.gov/

A banquet license is required before sales of liquor by the drink may be made at a private function. Licenses are required for other activities involving liquor. The necessary forms and instructions can be obtained at any Washington State Liquor Board retail outlet or from the office in Olympia.

Public Disclosure Commission

Individuals and organizations that make any sort of expenditures for the purpose of attempting to influence the passage or defeat of any legislation or rule by the state legislature or a state agency are required to register as lobbyists. The PDC also enforces rules about every sort of political advertising which apply to individuals and organizations throughout the state. Learn more here: www.pdc.wa.gov

Department of Revenue

There are many local office. Check the state government listings in the telephone book or call 1-800-647-7706. Learn more at: www.dor.wa.gov

Taxes

Sales tax must be collected on all sales of services and merchandise unless exempted by law. Suppliers must be given a resale certificate at the time of purchase for any merchandise which will be resold; there are penalties for failure to collect and for evasion of sales taxes.

Use taxes must be paid on all taxable items which are consumed or put into service in Washington state without payment of retail sales tax.

Business and Occupations tax is due on gross receipts from most activities; gifts and donations (including grants and contracts under certain conditions) are not taxable; some membership dues are also exempt.

Periodic (quarterly or monthly) tax returns are sent automatically to all registered businesses. The tax return has spaces for entering deductions for nontaxable revenues and for calculating any use taxes which may be due. Initial registration is part of the Master Licensing process; see Department of Licensing.

Real estate taxes are due on all property not exempt by law. Use Revenue Form 630001-1 to apply for exemption for real property used for exempt purposes; landlords may be able to secure a reduction in property taxes for leased property used for exempt purposes. Recertification of property tax exemptions is required every second year.

In January 2002, the Department issued "Information on Washington's Tax Structure - Nonprofit Organizations" to answer in a general way many of the questions nonprofit organizations may have about tax liabilities.  It is available online (as a .pdf file) at http://dor.wa.gov/Docs/Pubs/IndustSpecific/NonProfit.pdf. The online edition of the Washington Administrative Code (WAC) has a section devoted to taxes and nonprofit organizations, with live links to other relevant regulations.  Find it at http://www.leg.wa.gov/wac/index.cfm?fuseaction=section&section=458-20-169.

The Department also publishes Tax Exemptions in even-numbered years to document the revenue effects of Washington state's tax laws and the various exemptions and special conditions which have been enacted over the years. A summary of exemptions currently in force from the Department of Revenue is forwarded to the Legislature in each even numbered year.  The 2000 edition is available online at http://dor.wa.gov/Docs/Reports/2000/Tax_Exemptions_2000/contents.htm. 

Local (County and City) Registrations and Taxes

Many Washington counties and cities require business licenses and other registrations for nonprofit organizations with facilities or operations within their borders. In general, county and city auditors will be able to provide information on such requirements. Contact the Department of Licenses In the City of Seattle [(206) 684-8484] or King County [(206) 296-3504].

Personal property taxes may be due on office equipment and other tangible property owned and used within Washington state. Holders of county or city business licenses will normally receive tax returns automatically.

The following are the Washington cities with B&O taxes that may apply to nonprofit activities:

Aberdeen Bellingham Cosmopolis Hoquiam Long Beach North Bend Pacific Roy Shelton Tacoma Westport

Bainbridge Island Black Diamond DuPont Kelso Longview Ocean Shores Rainier Ruston Snoqualmie Tumwater Yelm

Bellevue Bremerton Everett Lacey Mercer Island Olympia Raymond Seattle Sumner Vancouver September 29, 2001

Federal Tax Exemption Internal Revenue Service Publication 557 Tax Exempt Status for Your Organization describes the process for establishing eligibility for exemption from federal corporate income taxes. Some nonprofit corporations may be exempt from other federal taxes; an attorney or tax advisor can give advice on these questions as well as Washington state's taxes and regulations as they may apply to nonprofit organizations. To obtain IRS publications, call (800) 829-3676 or visit www.irs.ustreas.gov/prod/forms_pubs/pubs.html.