The Overview

If you donate to a charity through an online fundraising platform, a new California law now requires that platform to tell you upfront what happens to your money if it can't reach your chosen charity. California's Supervision of Trustees and Fundraisers for Charitable Purposes Act, AB 2221 became law when Gov. Gavin Newsom (D) signed it Sept. 27. ​

Online giving platforms can route donations through an intermediary before the money reaches a charity, and that intermediary may deduct a service fee, according to the Federal Trade Commission. The online filing service must support comprehensive electronic administration by Jan. 1, 2028.

What the Law Does

The law amends the existing Supervision of Trustees and Fundraisers for Charitable Purposes Act, which governs how charitable fundraising platforms register and operate in California. Key changes include:

  • When a platform cannot send a donation to the donor's chosen charity, it must disclose what will happen to those funds instead.
  • for checkout donations of no more than $10, or higher if adjusted for inflation, platforms may make certain disclosures through a conspicuous hyperlink.
  • Platforms may rely on electronic lists from the Franchise Tax Board and the Attorney General's Registry of Charities and Fundraisers to check a recipient charity's good standing, and the bill would remove IRS lists from that option.
  • All entities required to file with the Registry must do so through the Attorney General's online filing service, which must support full electronic administration by Jan. 1, 2028.

Legislative Status

Asm. Jacqui Irwin (D) sponsored the bill. Two Assembly committees passed it unanimously in April and May before the full Assembly approved it 73-0 on May 22. A Senate committee passed it 13-0 on June 23, the full Senate passed it 40-0 on Aug. 30, and the Assembly concurred in Senate amendments 78-0 the same day.

Irwin said the law will let the Attorney General "crack down on fraudulent actors that prey on people's best intentions," according to a California DOJ announcement. Jan Masaoka, CEO of the California Association of Nonprofits, said the law "will increase donor confidence in online charitable giving and help ensure that nonprofits receive online donations in a timely way," according to a California Department of Justice announcement.

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