CA AB 488 Requirements for online fundraising in the state of California

The state of California has issued a new set of regulations regarding online charitable fundraising that impacts nonprofits using online fundraising platforms and any charitable solicitation activities within the state.

California Gov. Code Section 12599.9, and a recently issued set of regulations at Cal. Code Regs., tit. 11 §§ 314-323, impose a series of special new requirements for online charitable fundraising.

Among other requirements, California requires that charitable organizations soliciting donations or receiving funds from California residents not just maintain their tax-exempt status as a 501(c)(3), but also not be listed on any “may not operate” list issued by the California Attorney General (“AG”) or the California Franchise Tax Board (“FTB”) (collectively, “good standing”).

Consistent with OCCF’s legal obligations, for any nonprofits soliciting donations through Nonprofit Central and through our Giving Days, we will confirm charitable organization status by checking the California AG, FTB, and IRS databases. If a nonprofit is not in good standing, the donation function will be discontinued until the nonprofit provides proof of being back in good standing.

Nonprofit Central Updates

As part of our due diligence process to ensure we are adhering to AB488 requirements, we have added four new required fields to Nonprofit Central.  In order to have your profile renewed, you will need to add the following information to your profile (located on More Details tab):

  1. California State Exemption Number
  2. Status of IRS Required Filing including 990s (current or out of date)
  3. Status of CA required filings including form RRF-1 (current or out of date)
  4. Date for RRF-1 filed (will need to be updated each year)

What Your Organization Can Do to Ensure Compliance:

Monitor your organization’s good standing status and ensure that you are submitting the required filings to remain in good standing.  We suggest that you check all three databases, even if you believe there is no reason to be out of good standing on any of these lists.

  1. CA Attorney General Registry Verification
  2. CA Franchise Tax Board Entity Status Letter | FTB.ca.gov
  3. IRS Tax Exempt Organization Search | Internal Revenue Service (irs.gov)

We encourage you to consult with your own legal counsel and contact the applicable government agency directly if you have specific questions about compliance.

Many philanthropic organizations, including community foundations like OCCF, continue to advocate with California regulators to mitigate the unintended consequences of this regulation on the nonprofit sector. We encourage you to join in this effort by contacting the Office of the California Attorney General and the California State Senators and Assembly members to educate them about how this will impact your ability to achieve your mission and serve their constituents.

Thank you for your understanding and attention to this matter.