Over the past several years, charitable giving has shifted decisively online. Platforms that facilitate internet-based donations — from crowdfunding sites to peer-to-peer fundraising tools — have dramatically expanded how nonprofits connect with supporters. But that convenience has also posed new compliance challenges.
In response, California has enacted one of the first comprehensive regulatory frameworks in the United States specifically governing online fundraising platforms and their interaction with nonprofits. This framework is now in force and carries implications for charities and platforms alike — and it may be a preview of trends other states could follow.
What Changed: Assembly Bill 488 and Final Regulations
California’s Assembly Bill 488 (AB 488) significantly expanded the scope of charitable solicitation oversight to include entities that operate online fundraising platforms or enable online solicitations for charities. While the statute was originally adopted in 2021, final implementing regulations were issued in early 2024 and became effective on June 12, 2024.
Under this new framework:
- Online fundraising platforms must register with the California Attorney General’s Registry of Charities and Fundraisers before they “perform, permit, or enable” any online charitable solicitation.
- Platform charities (nonprofits that operate platforms) also have compliance obligations, including separate registrations and annual reports.
- Platforms must obtain written consent from charities before using their name in fundraising solicitations.
This represents a significant expansion of the state’s authority, especially compared to older laws that focused more narrowly on traditional solicitors and professional fundraisers.
What Platforms Now Must Do
Under the new rules, charitable fundraising platforms (including those that enable peer-to-peer campaigns or online donation tools) must:
1. Register and Renew Annually
Platforms must register with the Attorney General’s Registry before engaging in any online solicitations. Registration renewals are due each year by January 15; annual reporting follows, typically due July 15 for activity in the prior calendar year.
2. Track and Report Fundraising Activity
Platforms are required to begin tracking fundraising transactions from the effective date forward, and to file annual reports summarizing activity.
3. Disclose Key Information to the Public
Platforms must make clear disclosures to donors, including information about fees, how donations will be routed, and whether the recipient charity is in good standing.
4. Maintain Segregation and Timely Distribution of Funds
Donations must be held in separate accounts and must be transferred to recipient charities within specified timeframes — generally within 30 days of receipt unless otherwise agreed.
5. Ensure “Good Standing” of Charities
Platforms may only solicit for charities that are in “good standing” with the California Attorney General, the IRS, and the Franchise Tax Board (FTB).
What This Means for Charities
Although this law directly regulates platforms, it has several implications for nonprofits:
📌 Higher Expectations of Transparency
Platforms must communicate clearly about how donations flow to charities, which means nonprofits should ensure they can support timely and accurate information when partnering with platforms.
📌 Written Consent Requirements
Platforms are now required to secure written consent from charities before using a charity’s name or logo. This protects nonprofits’ reputations but also imposes an administrative step before campaigns begin.
📌 “Good Standing” Matters
Nonprofits fundraising online should be aware that platforms may now refuse to work with charities not in good standing — for example, charities that have registration lapses or revoked status. This makes internal compliance even more important.
📌 Reporting Requirements May Influence Platform Practices
Annual reporting by platforms will likely surface information on fundraising volumes, fees retained, and distribution patterns. Experienced nonprofits may want to understand how these reports affect public perceptions and donor expectations.
Enforcement Is Already Happening
In late 2025, the California Attorney General issued a cease and desist order against an online fundraising platform that failed to comply with AB 488 requirements and delayed disbursement of funds — highlighting that enforcement under this new regime is not theoretical.
Is This Heading to Other States?
There are early signs that other jurisdictions are watching California’s approach closely. For example, commentators have noted that Hawaii has begun exploring similar rules to enhance transparency and donor protection for online giving — a trend driven largely by the increasing prominence of digital fundraising.
As online giving continues to grow, more states may adopt platform-focused compliance frameworks that mirror aspects of California’s law.
Key Takeaways for Nonprofits
For nonprofits that fundraise online, especially nationally:
- Don’t assume platform compliance absolves charity responsibility — platforms now have their own obligations, but charities must still maintain good standing and provide consent.
- Ensure you understand how a platform’s disclosures and reporting affect your organization’s compliance and reputation.
- Track platform performance and fund distribution timelines to align with donor expectations and state requirements.
If your organization employs online fundraising tools and would like help evaluating your registration footprint or platform compliance exposure, Ironwood Registrations can help: contact us