In an article for the Puget Sound Business Journal, Kyle Richard describes significant changes to the law governing nonprofit organizations in Washington state. The law, which will be completely overhauled, affects Washington nonprofit fiduciary duties, charitable asset management and member requirements.
According to Kyle, “the most important changes relate to governance structure (including both member and director rights and responsibilities), fiduciary duties, the use of charitable assets and the available and appropriate procedures for board and member meetings.” These changes replace what Washington nonprofits knew as the Washington Nonprofit Corporation Act (1967 WNCA) with a new Chapter 24.03A (2021 WNCA) that Kyle says is generally based on the fourth edition of the American Bar Association’s Model Nonprofit Corporations Act (RMNCA).
Kyle encourages Washington nonprofit corporations to review their articles and bylaws before year-end to determine what changes are necessary for compliance by January 1. To learn more, subscribers may read the full article on the Puget Sound Business Journal website.