CalNonprofits 2026 Bill Round-up
Now that our full slate of sponsored bills for 2026 have all been introduced and begin heading into committee hearings, we’d like to share this overview with you of what we’ll be working to advance this session.
Establish an Office of Nonprofit Empowerment
SB 1240 (McNerney)
A total of 324 nonprofit organizations across the state recently signed a letter in support of the creation of a new office within California’s state government to strengthen the connection between the state and its nonprofit partners. A centralized nonprofit hub dedicated to understanding and supporting these critical partnerships would improve coordination and alignment across state agencies that regularly engage with nonprofits (in the way that GO-Biz supports the business sector, for example). Read our original ONE proposal.
Improve DOJ’s Registry of Charities and Fundraisers
AB 2221 (Irwin)
Longstanding challenges associated with the Registry’s lengthy response times, outdated technology, and poor customer service have left nonprofits unable to operate, fundraise, or be paid for services. This legislation will protect due process for nonprofits, restrict revocation of good standing status on the registry, and require much-needed process improvements.
Reform Tax Code for Further CA Nonprofit Protections
AB 2084 (Bauer-Kahan)
This bill gives the state Franchise Tax Board greater discretion to review and preserve state tax-exempt status for nonprofits subject to a revocation of their federal 501(c)3 tax-exempt status due to political reasons associated with mission-driven programmatic activities.
Legacy Fulfillment Act
SB 1288 (Laird)
Modeled after efforts in Iowa, Indiana, Colorado, etc. to expedite the release of bequests to charities from estates (nonprobate assets) and prevent financial institutions from delaying or obstructing charitable gifts to nonprofits.
Continued from last session:
Advanced Pay Implementation
AB 1039 (Hart)
Accelerates implementation of AB 590 (2023), which authorized up to 25% advance pay for state grants and contracts with nonprofits. AB 1039 requires that all new grants and contracts offer advance pay.
Omnibus Bill: Fair Indirect Costs & Prompt Payments
AB 880 (Bennett)
Combines the elements of SB 557 (2023) and SB 336 (2024) into one bill, including better indirect cost coverage and closing the loophole in the Prompt Payment Act.
