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SACRAMENTO, CA – Governor Newsom signed Assembly Bill (AB) 2221 by Assemblymember Jacqui Irwin (D-Thousand Oaks), which will modernize California’s charitable registration system and ensure nonprofits are not prevented from raising money online due to minor administrative errors and bureaucratic delays.
“AB 2221 strikes a critical balance between protecting donors and ensuring charities can continue doing their work without unnecessary bureaucratic barriers,” said Assemblymember Irwin. “By modernizing DOJ filing processes and clarifying good-standing rules, we can make online charitable giving more efficient and accessible while ensuring that we respect donor intent and allow vital funding to continue reaching the nonprofits that communities rely on. I commend Governor Newsom for signing this legislation.”
This bill updates the Department of Justice’s Registry of Charitable Trusts by streamlining the registration process, providing charities with greater clarity when deficiencies are identified, and narrowing the circumstances under which a charity loses its “good standing” status.
“AB 2221 makes significant improvements to a system that has long created unnecessary barriers for nonprofits serving communities across the state,” said Geoff Green, CEO of CalNonprofits, a statewide nonprofit policy alliance. “We were very fortunate to have a champion like Assemblymember Irwin, and we are pleased that the Governor understood the importance of this bill.”
In recent years, online charitable giving has become an increasingly important way for Californians to support nonprofits, with platforms like GoFundMe and PayPal frequently serving as third-party platforms used by charities to collect donations. California’s existing charitable giving laws were originally targeted for in-person, mail, and phone-based solicitations, creating a significant regulatory gap for online fundraising. This led to the passage of Assembly Bill 488 (Irwin, Ch. 616, Stats. 2021) which established important protections for online donors.
While AB 488 was largely successful, implementation revealed administrative challenges for online funding platforms and charitable organizations. Charitable organizations began to report that frequent good-standing verifications and other filing requirements could create disruptions, including situations where minor clerical errors like typos or late registration filings led to charities losing their ability to fundraise online.
In response to these issues, AB 2221 requires the DOJ to process charitable organizations’ applications within 15 days of receipt and requires written notice of deficiencies before a registration becomes delinquent. Additionally, AB 2221 refines "good standing" rules so that charities only lose their status for serious infractions, preventing organizations from losing their ability to fundraise over minor administrative issues.
Modernizing California’s online Registry system will provide nonprofits with the administrative stability needed to maintain uninterrupted funding streams and ensure no California charity is blocked from raising vital funds to continue caring for the communities that rely on them most.