Finance
Supervision of Trustees and Fundraisers for Charitable Purposes Act
AB 2221 tightens transparency and filing rules for online charitable fundraising platforms.
Donors will receive clearer information when a listed charity may not get their money and where those funds will go instead. The law also moves charity-registry filings to the Attorney General’s online system and sets notice procedures before registrations become delinquent.
What the law does
- Requires platforms checking a charity’s good standing to rely on machine-readable lists from the Franchise Tax Board and Attorney General, rather than Internal Revenue Service lists.
- Requires disclosures explaining the alternative use of donations when a listed recipient charity may not receive them.
- Allows checkout solicitations of $10 or less, or an inflation-adjusted amount, to provide specified disclosures through a conspicuous hyperlink when the recipient charity has consented.
- Requires registry registrations, reports, supporting documents, and fees to be filed through the Attorney General’s online filing service.
- Requires the online filing service to support comprehensive electronic administration, including prompt confirmations and automated processing of specified filings, by January 1, 2028.
- Establishes notice, response-period, and good-standing procedures for deficient, delinquent, expired, or unprocessed charity-registry filings.
Who it affects
- Charitable fundraising platforms and platform charities.
- Charitable organizations listed as recipients of online donations.
- Donors and users making charitable contributions through online platforms.
Context
The Attorney General supervises charitable fundraising platforms and maintains the Registry of Charities and Fundraisers.