State Moves to Strengthen Fundraising Platform Bill

As CalNonprofits continues to advocate for protections for nonprofits and donors when using online fundraising platforms, CalNonprofits CEO Geoff Green testified earlier this week at a hearing of the Assembly Privacy and Consumer Protection Committee. The committee is tasked with assessing and improving the implementation of 2021’s Assembly Bill 488 (Irwin). CalNonprofits helped to negotiate AB 488, which was intended to ensure online fundraising platforms – like PayPal and GoFundMe – have safeguards in place for both donors and the nonprofits they support.

The law 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 of the bill 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.

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.

CalNonprofits has also joined with partners through the National Council of Nonprofits to explore the potential for a federal policy to further regulate fundraising platforms and encourage other states to advocate for their own policies.

Watch the video recording of the February 17th hearing.