Are there any restrictions on the types of investments a nonprofit can make?

Yes, there are restrictions on the types of investments a nonprofit can make in Washington. According to the Washington Nonprofit Corporations Act, a nonprofit cannot make any investments that are not "prudent investments" for the organization. Prudent investments are those that a prudent person would make and include investments such as stocks, bonds, mutual funds, and real estate. The Act also states that any investments must be suitable for the current and foreseeable financial needs of the nonprofit. Therefore, a nonprofit can only make investments that will not put its financial or charitable mission at risk. Additionally, if a nonprofit decides to invest in something other than what is listed as a prudent investment, it must receive approval from the Secretary of State before it can make the investment. Finally, a nonprofit cannot use its funds to speculate or take excessive risks with its investments. Therefore, a nonprofit must be aware of the market and be prepared to accept losses if the investments do not perform well. In short, a nonprofit in Washington must make prudent investments that are suitable for the organization’s current and foreseeable financial needs, and any investments outside of that must receive approval from the Secretary of State. Additionally, the nonprofit cannot take excessive risks or speculate with its investments.

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Are there any restrictions on the types of investments a nonprofit can make?

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