What are the requirements concerning the disclosure of financial information?

In Washington, nonprofit organizations are held to certain standards concerning the disclosure of financial information. These standards are outlined by the Washington State Solicitations Act. Under the Act, all nonprofits must provide a financial report upon request of the Washington Secretary of State if the organization has received contributions and/or incurred expenses of $25,000 or more in the last fiscal year. This report must contain a statement of financial condition and a statement of revenues and expenses. Nonprofits are also required to make financial information available to the public upon request. This includes financial statements and/or disclosures which must be provided to the Secretary of State and made available at the organization’s principal office for inspection by the public during regular business hours. Nonprofits must also include certain financial information with their solicitations for contributions. This includes a summary of the most recent financial report and an explanation of the organization’s method of accounting. Finally, all nonprofits must also keep accurate records of their financial activities and retain these records for a minimum of seven years after the fiscal year in question. These requirements must be met in order for an organization to maintain its nonprofit status in Washington. Failure to comply with the financial disclosure requirements can result in fines and/or the revocation of the organization’s nonprofit status.

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What are the requirements concerning the disclosure of financial information?

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