Nonprofit organization fund-raising

From the 2024 DOR Tax Exemption Study

82.08.02573 - Nonprofit organization fundraising Description Sales by a nonprofit organization or a library for fundraising activities are exempt from sales tax if the gross income from the sale is exempt under B&O tax. The exemption does not extend to the regular operation of a bookstore, thrift shop, or restaurant. Purpose To support fundraising activities of nonprofit organizations and libraries. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $40.900 $42.600 $44.200 $46.000 Local Taxes $18.400 $19.100 $19.900 $20.700 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $39.000 $44.200 $46.000 Local Taxes $0.000 $17.500 $19.900 $20.700 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. - Washington nonprofit organizations generated $100 billion in