What are the laws concerning the disclosure of the sources of funding for a nonprofit organization?
In Washington, the laws surrounding disclosure of funding sources for nonprofit organizations are contained in the Washington Nonprofit Corporation Act. This act requires that all nonprofit organizations operating in the state provide a statement at least once a year that contains information on the identity of the people or organizations that have provided funding to the nonprofit. This statement needs to also include information on how the funds were used. Additionally, the organization must provide a breakdown of all the funds they have received over the past year from each individual donor. Additionally, if the nonprofit receives funding from the government, the organization must provide a full report to the government that includes specifics about the sources of their funding and how the funds were used. Nonprofits must also publicly disclose any of their activities that involve lobbying or influencing public policy, including any funds received from such activities. Finally, if a nonprofit receives a single donation of $1,000 or more, then the nonprofit must provide a full report to the Washington Charities Program. This report must include information on the donor, the amount of the donation, and the purpose of the donation. In summary, all nonprofit organizations operating in Washington must disclose the identity and source of their funding, as well as how the funds were used. They must additionally provide details regarding government funding and large donations, and provide reports to the Washington Charities Program if they receive donations of $1,000 or more.
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