New Washington sales tax expansion Increases costs for non-profits
A new state sales tax expansion that went into effect on October 1, 2025, is creating significant financial and administrative challenges for nonprofit organizations across Washington, including those in King County and the South Sound. The new law subjects many previously exempt services to sales tax, directly impacting fundraising efforts and operational budgets.
The new measure expands the state sales tax of up to 10% to cover a wide range of services crucial to nonprofit operations. Services now taxable include advertising, IT support, auctioneers, and live presentations. This change means that nonprofits that depend on fundraising events and campaigns are facing higher costs. For instance, hiring an auctioneer for a charity gala or launching a digital ad campaign for a fundraising drive now includes sales tax, which ultimately reduces the net funds raised for their causes.

