{"id":255941,"date":"2021-10-22T13:30:31","date_gmt":"2021-10-22T08:00:31","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=255941"},"modified":"2021-10-22T13:14:16","modified_gmt":"2021-10-22T07:44:16","slug":"usa-california-new-law-regulating-charitable-fundraising-platforms","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/22\/usa-california-new-law-regulating-charitable-fundraising-platforms\/","title":{"rendered":"USA- California| New Law Regulating Charitable Fundraising Platforms"},"content":{"rendered":"<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The Government of California has notified\u00a0<\/span><i><span data-contrast=\"auto\">Assembly Bill 488<\/span><\/i><span data-contrast=\"auto\">\u00a0on October 7, 2021. The law amends\u00a0<\/span><i><span data-contrast=\"auto\">The Supervision of Trustees and Fundraisers for Charitable Purposes Act<\/span><\/i><span data-contrast=\"auto\">\u00a0to regulate online charitable fundraising platforms that operate in the state and the platform charities with whom they collaborate. The\u00a0law\u00a0will\u00a0come into force\u00a0on January 1, 2023.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><b><span data-contrast=\"auto\">Key highlights:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The\u00a0new law\u00a0addresses gaps in the existing charitable solicitation law framework as applied to charitable fundraising on internet platforms.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The law creates two new regulated classes,\u00a0charitable fundraising platforms and platform charities and recognizes a third term,\u00a0recipient charitable organization,\u00a0that rounds out the trifecta of relationships commonly seen in charitable fundraising arrangements occurring on online platforms.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The law provides regulatory\u00a0obligations\u00a0to be undertaken by charitable fundraising platforms:\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li data-leveltext=\"%1.\" data-font=\"Calibri, Calibri_MSFontService, sans-serif\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Registration and annual reporting requirements<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol style=\"text-align: justify;\">\n<li data-leveltext=\"%1.\" data-font=\"Calibri, Calibri_MSFontService, sans-serif\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Penalties for noncompliance.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol style=\"text-align: justify;\">\n<li data-leveltext=\"%1.\" data-font=\"Calibri, Calibri_MSFontService, sans-serif\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Certain\u00a0disclosures must be provided before a person can complete a donation or select or change a recipient charitable organization on a charitable fundraising platform.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li style=\"text-align: justify;\" data-leveltext=\"%1.\" data-font=\"Calibri, Calibri_MSFontService, sans-serif\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Separate accounts for charitable fundraising platform to be created\u00a0to\u00a0hold funds raised through any solicitation on the charitable fundraising platform in an account or accounts separate from their own.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><span style=\"color: #0000ff;\">*Tanvi Singh, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government of California has notified\u00a0Assembly Bill 488\u00a0on October 7, 2021. The law amends\u00a0The Supervision of Trustees and Fundraisers for Charitable Purposes <\/p>\n","protected":false},"author":121,"featured_media":255955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,4],"tags":[],"class_list":["post-255941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign","category-legislationupdates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>USA- California| New Law Regulating Charitable Fundraising Platforms | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/22\/usa-california-new-law-regulating-charitable-fundraising-platforms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USA- California| New Law Regulating Charitable Fundraising Platforms\" \/>\n<meta property=\"og:description\" content=\"The Government of California has notified\u00a0Assembly Bill 488\u00a0on October 7, 2021. 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