AB 2221’s Reforms Bring Regulatory Fairness for California Nonprofits
California has officially delivered a fairer, more efficient regulatory framework to improve nonprofit compliance with the Department of Justice’s Registry of Charities and Fundraisers.
Governor Newsom has signed Assembly Bill 2221 into law. Sponsored by CalNonprofits and authored by Asm. Jacqui Irwin, AB 2221 establishes essential due process protections, and addresses long-standing operational challenges with the Registry. For years, systemic inefficiencies and a lack of due process allowed minor clerical issues – like a missing page on a scanned form – to trigger adverse consequences. When a nonprofit’s “good standing” is disrupted over a minor filing delay or administrative error, critical state reimbursements are paused, online fundraising is blocked, and vital community services suffer. AB 2221 fixes this broken status quo.
CalNonprofits led the charge on this bill because no other advocacy entity in California could represent the collective voice and practical operational realities of the nonprofit sector in the way this effort required. CalNonprofits championed your interests and articulated a unified, comprehensive voice about why the Registry’s status quo was failing nonprofits. We dedicated extensive staff time, policy expertise, and organizational resources to craft and advance this solution. Over two years, our team convened and synthesized feedback from:
- Nonprofits of all sizes facing Registry hurdles
- Attorneys and charitable compliance experts
- Technology and online fundraising platform stakeholders
- Assemblymember Irwin’s Office
- The Attorney General’s executive team and the leaders of the Registry unit
Passing AB 2221 required extensive negotiation with the DOJ to reach thoughtful compromises. Together, we crafted a workable statutory framework that preserves the DOJ’s critical oversight role and donor protection mandates while finally granting nonprofits the due process, transparency, and administrative stability needed to fulfill their missions without fear of abrupt fundraising shutdowns. We deeply appreciate the DOJ’s collaboration and open dialogue in refining this bill over many meetings and internal deliberations.
Key Reforms & Modernization Under AB 2221
✅ Faster Processing and Clear Deadlines: The bill requires the Registry to process new and delinquent filings within 15 calendar days, providing nonprofits with the certainty they need to plan their fundraising and operations. Currently there is no time limit to process filings and currently reviews on average take 45-90 days.
✅ Protection Against Sudden “Delinquency” Status: It creates a “notice-and-opportunity to correct” framework, giving organizations a four-month window to fix clerical errors or filing issues before their “good standing” on the Registry is impacted.
✅ Ensures the Punishment Fits the Infraction: It refines the definition of “good standing” in statute so that simple clerical issues don’t lead to a catastrophic loss of government funding or the ability to fundraise.
✅ Modernizes the Registry’s System: Streamlines compliance by mandating online filings to eliminate paper backlogs and mail delays. It also requires the Registry to develop new automatic approval features, similar to successful systems used in other states like Colorado and Washington
“Compliance with reasonable regulations is an important part of building and maintaining the public’s high level of trust in nonprofits. Both regulations and enforcement mechanisms must, however, be fair, sensible, and easy to understand. AB 2221 is a testament to the power of cross-sector collaboration and persistent advocacy. We are deeply grateful to our members and partners across California – and nationally – whose stories and real-world insights informed our efforts to secure these critical protections.” – Geoff Green, CEO of CalNonprofits.
