wa-law.org > bill > 2025-26 > SB 6349 > Original Bill
This chapter does not apply to amounts received from fund-raising activities by nonprofit organizations, as defined in subsection (2) of this section, and libraries as defined in RCW 27.12.010.
As used in this section, a "nonprofit organization" means:
An organization exempt from tax under section 501(c) (3), (4), or (10) of the federal internal revenue code (26 U.S.C. Sec. 501(c) (3), (4), or (10));
A nonprofit organization that would qualify under (a) of this subsection except that it is not organized as a nonprofit corporation; or
A nonprofit organization that meets all of the following criteria:
The members, stockholders, officers, directors, or trustees of the organization do not receive any part of the organization's gross income, except as payment for services rendered;
The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and
The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office.
As used in this section, the term "fund-raising activity" means soliciting or accepting contributions of money or other property or activities involving the anticipated exchange of goods or services for money between the soliciting organization and the organization or person solicited, for the purpose of furthering the goals of the nonprofit organization. For nonprofit organizations that operate exclusively to manage interscholastic programs for public and private schools, "fund-raising activity" also includes all activities that serve the purpose of the nonprofit organization including, but not limited to, sponsorships, ticket sales, sales of radio and television broadcasting rights, coaching workshops, and similar activities, provided that all amounts received in exchange for the activity are used solely to support the nonprofit organization. "Fund-raising activity" does not include the operation of a regular place of business in which sales are made during regular hours such as a bookstore, thrift shop, restaurant, or similar business or the operation of a regular place of business from which services are provided or performed during regular hours such as the provision of retail, personal, or professional services. The sale of used books, used videos, used sound recordings, or similar used information products in a library, as defined in RCW 27.12.010, is not the operation of a regular place of business for the purposes of this section, if the proceeds of the sales are used to support the library.
In computing tax there may be deducted from the measure of tax amounts derived from bona fide (1) initiation fees, (2) dues, (3) contributions, (4) donations, (5) tuition fees, (6) charges made by a nonprofit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public, (7) charges made for operation of privately operated kindergartens, and (8) endowment funds. This section may not be construed to exempt any person, association, or society from tax liability upon selling tangible personal property, digital goods, digital codes, or digital automated services, or upon providing facilities or other services for which a special charge is made to members or others. If dues are in exchange for any significant amount of goods or services rendered by the recipient thereof to members without any additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction under this section.
For the purpose of nonprofit organizations that operate exclusively to manage interscholastic programs for public or private schools, the term "dues" includes membership fees, assessments, or similar amounts received from participating schools or school districts, provided that all proceeds are used solely to support the purpose of the nonprofit organization.
RCW 82.32.805 and 82.32.808 do not apply to this act.