New Efforts to Improve Safeguards Around Fundraising Platforms

California Attorney General Rob Bonta recently joined with 21 attorneys general and charitable regulators to demand that GoFundMe remove all unauthorized nonprofit donation web pages within the next two weeks.

"We want to thank Attorney General Bonta for his leadership and action on behalf of our sector," said CalNonprofits CEO Geoff Green. "We applaud the AG's continuing efforts to safeguard nonprofits in California and beyond." Ensuring that online fundraising platforms, like GoFundMe, PayPal and others, are safe and efficient for both nonprofit organizations and the donors who support them has been a priority for CalNonprofits for years.

To this end, CalNonprofits is sponsoring AB 2221 authored by Assemblymember Jacqui Irwin (D-Thousand Oaks) that would correct some unintended consequences resulting from the passage of AB 488, a bill CalNonprofits helped to negotiate and then advocate for in 2021.

AB 488 has been a valuable tool ensuring that fundraising platforms respect the donor/nonprofit relationship, deliver funds to nonprofits more quickly, and are more transparent with fees. Unfortunately, an unintended consequence has resulted in thousands of nonprofits being categorized as "not in good standing" by the state's Registry of Charities and Fundraisers, unable to receive funds, and facing lengthy delays when trying to comply with regulations.

AB 2221 ensures that clerical errors, slow processing times, or compliance issues with registration and renewals won't prevent nonprofits' from fulfilling their missions. It is not unusual for California nonprofits to wait weeks and even months for their status to be updated in the registry, a process often resolved in as little as 10 days in other states Just as we don't seize a car for a late driver's license renewal, California must balance administrative compliance with a nonprofit's fundamental right to operate.

CalNonprofits has been advocating for changes to the Registry process and has been working with the Attorney General's office as they seek to modernize the system.