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Thursday, September 26, 2024

Attorney General Bonta releases updated guide for charities

State AG
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Attorney General Rob Bonta | Official website

California Attorney General Rob Bonta has announced the release of an updated Guide for Charities. This guide aims to provide best practices for charitable organizations, fundraising professionals, and charitable fundraising platforms operating in California. The Attorney General is responsible for supervising charities and professional fundraisers who solicit on their behalf. Under Government Code section 12580 et seq., the Attorney General can investigate and take legal action against charities and fundraisers that misuse charitable assets or engage in fraudulent practices.

“From providing food to families in need to helping dogs and cats find their forever homes, charities perform important functions throughout California. With our updated Guide for Charities, and through other outreach efforts, my office is committed to helping them operate legally,” said Attorney General Bonta. “At the same time, let there be no doubt that we will continue going after those who divert donations for personal use and otherwise commit fraud against generous California donors.”

The Attorney General’s Registry of Charities and Fundraisers administers the registration and reporting requirements set forth under Government Code section 12580 et seq. The Registry oversees various programs such as Initial Registration, Registration Renewals, Delinquency, Dissolution, Professional Fundraising, Raffles, and Complaints. It also maintains a Registry Search Tool for the public to research registered charitable organizations, fundraising professionals, and charitable fundraising platforms.

The updated Guide for Charities aims to help directors and officers of charities understand state law requirements. The previous version was published in June 2021. The new guide includes several important updates:

- An overview of regulatory requirements for charitable fundraising platforms (found in Chapter 9). Effective June 12, 2024, crowdfunding websites like GoFundMe, Meta, PayPal, and other online platforms that enable solicitations for charitable donations must register with the Registry.

- A new section on “behested payments.” These are monetary or in-kind donations made at the request or suggestion of a public official for legislative, governmental, or charitable purposes. The Political Reform Act requires public officials to report behested payments to the California Fair Political Practices Commission on Form 803.

- Reflecting the Registry’s new name—it was formerly called the Registry of Charitable Trusts—and renumbering regulations applicable to charities and fundraisers.

Over 109,000 charitable organizations are registered with the Registry. As of June 2022, these registered charities reported total revenues exceeding $473 billion—an increase of $69 billion from June 2021.

The updated Guide for Charities is available online.

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