Nonprofit Eligibility Requirements
Eligibility requirements are established in King County Code 3.36 and in Employee Giving Program Adopted Public Rules.
In some cases items below are reorganized or edited to allow for easier reading. You will also find an Implementation Guide at the bottom of the page to help with definitions and examples of what we would look for in a document request. Click on the following hyperlinks to see full text:
- King County Code 3.36.045
- King County Employee Giving Program Adopted Public Rules
- All Organizations
- Shared Tax Identification Numbers
- Governmental Units
- Revocation of Eligibility
- Is formally recognized by the IRS as a 501(c)(3) or is a governmental unit of the state of Washington, and for which all contributions to the nonprofit organization are eligible to be deductible for federal income tax purposes under Section 170 of the Internal Revenue Code of 1986.
- Is registered with the Washington state Secretary of State as provided by RCW 19.09.065 and is in compliance with Washington state laws governing charities.
- Does not discriminate against any person on the basis of race, color, religious affiliation, sex, age, national origin, marital status, sexual orientation, disability, or gender identity or expression or qualifies for an exemption under Title VII of the Civil Rights Act of 1964 as amended. This does not deny eligibility to a federation or nonprofit organization that is otherwise eligible to participate in the annual drive merely because the federation or nonprofit organization is organized by, on behalf of or to serve persons of a particular race, color, religious affiliation, sex, national origin, age, marital status, sexual orientation, disability, or gender identity or expression.
- Each federation and each independent nonprofit organization must submit an on-time and complete application, including all required attachments, during the annual nonprofit application cycle.
- The organization has been providing or conducting real services, benefits, assistance or program activities at least the previous two years.*
- The organization is directed by an active governing body whose members have affirmed adherence to a conflict of interest policy and a majority of whom serve without compensation. Compensated governing body members do not serve as the governing body’s chair or treasurer. Governmental units are exempt.
- The organization’s publicity and promotional activities are based upon the actual program and operations, are truthful and non-deceptive, and make no exaggerated or misleading claims.
- The organization has an annual financial statement prepared in accordance with generally accepted accounting principles.
- Within the fiscal period ending not more than 18 months prior to the January of the year of the Annual Drive for which the organization is applying, the organization’s financial statement has been reviewed per the following:
- If the organization’s annual gross income averaged over the previous three years is $3,000,000 or greater, conduct an audit by an independent third party of the preceding tax year; if annual gross income is $1,000,000 up to $3,000,000 either conduct an audit by an independent third party of the preceding tax year or federal financial reporting form (e.g.; 990, 990EZ) the organization normally files with the IRS which must be prepared by a certified public accountant or other professional who normally prepares such forms in the ordinary course of their business; if the annual gross income is less than $1,000,000, an internally produced, complete financial statement was produced and presented to the organization's governing body. Governmental units are exempt.*
- The organization will prohibit the sale, lease or distribution of King County contributor lists.
- A federation, each nonprofit organization represented by a federation, and each independent nonprofit organization, shall make available upon request by the EGP Committee, the King County Council, or the County Executive:
- its most recent IRS Form 990 or IRS Pro Forma 990;
- its most recent annual report, including an annual financial statement;
- a disclosure for the most recent annual report period of the total dollar value of support from all sources received on behalf of the charitable purposes of the organization; and
- the total dollar amounts applied to charitable purposes, fundraising costs and all other expenses during the most recent annual report period
*updated eligibility requirements per public rule adopted in 2021.
- For a federation, the federation has the express permission of an authorized official of each of its member nonprofit organizations to use the nonprofit organization’s name and to participate in the Annual Drive.
- For a federation, the federation has verified and accurately declared that each member organization meets all EGP eligibility requirements.
Shared Tax Identification Numbers (TIN)
Nonprofit organizations that submit separate applications under a common Tax Identification Number (TIN) must provide information to establish clearly distinguishable, separate identities for each organization in order to be listed separately in the Annual Drive. The information supplied by nonprofit organizations with a common TIN must establish that they are not simply a parent organization and a program(s) of the parent organization. Provision of information does not guarantee separate listings.
Such information may include:
- separate accounting, including independent financial statements;
- separate advisory/governing bodies;
- clearly defined geographical service areas such as local chapters of a national organization; or
- independent branding including website and marketing materials.
Governmental Unit Participation
- A state of Washington governmental unit may apply for inclusion in the Annual Drive if a contribution for the purpose specified by the governmental unit would constitute a “charitable contribution” under Section 170 of the Internal Revenue Code of 1986. Under Section 170, a charitable contribution to a state or political subdivision must be “for exclusively public purposes.” In order to establish eligibility, a governmental unit must include with its application the following:
- Documentation that the governmental unit is authorized to solicit and accept donations for the purpose identified in the application.
- Documentation of a separate fund or account that designates that its uses are limited to donations made for the purpose identified in the application; and
- A legal review stating that a contribution to the separate fund or account would meet the definition of “charitable contribution” under Section 170.
Revocation of Eligibility
The EGP Committee shall revoke a determination of eligibility if one or more
of the following occurs:
- failure of an applicant to inform the EGP Committee of any fact that would affect the EGP Committee's determination about the applicant's eligibility; or
- an applicant is ineligible under K.C.C. 3.36.045 or rules adopted for the program
- Better Business Bureau Wise Giving Alliance
- Charity Navigator
- Combined Federal Campaign
- Washington Secretary of State RCW 19.09