AB2221 - Supervision of Trustees and Fundraisers for Charitable Purposes Act.

Amended IN Senate August 27, 2026 Amended IN Assembly April 23, 2026 Amended IN Assembly April 13, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2221 Introduced by Assembly Member Irwin February 19, 2026 An act to amend Sections 12599.9 and 12599.10 of, and to add Sections 12599.11 and 12599.12 to, the Government Code, relating to charitable fundraising. LEGISLATIVE COUNSEL'S DIGEST AB 2221, as amended, Irwin. Supervision of Trustees and Fundraisers for Charitable Purposes Act. Existing law, the Supervision of Trustees and Fundraisers for Charitable Purposes Act, requires the Attorney General to, among other things, establish and maintain a register of charitable corporations, unincorporated associations, and trustees subject to the act and of the particular trust or other relationship under which they hold property for charitable purposes. Existing law requires the Attorney General to establish rules and regulations necessary for the administration of these provisions. Existing law requires a charitable fundraising platform, as defined, before soliciting, permitting, or otherwise enabling charitable solicitations, to register with the Attorney General’s Registry of Charities and Fundraisers, under oath, on a form provided by the Attorney General. Existing law requires a platform charity to have good standing, as defined, in order to facilitate acts of solicitation on a charitable fundraising platform. Existing law permits a charitable fundraising platform or platform charity to solicit, permit, or otherwise enable solicitations, or to receive, control, or distribute funds from donations, only for recipient charitable organizations or other charitable organizations in good standing. Existing law authorizes a charitable fundraising platform or platform charity to rely upon specified electronic lists periodically published by the Internal Revenue Service, the Franchise Tax Board, and the Attorney General’s Registry of Charities and Fundraisers to determine good standing of recipient charitable organizations or other charitable organizations, however, if those lists are not published, then a charitable fundraising platform or platform charity is not required to comply with this provision for that applicable agency for the length of time that agency’s list is unavailable. This bill would remove the provisions described above that authorize a charitable fundraising platform or platform charity to rely upon specified lists periodically published by the Internal Revenue Service from the electronic lists that a charitable fundraising platform or platform charity may rely upon to determine good standing of recipient charitable organizations, organizations or other charitable organizations and excuse compliance if the list is not published. organizations. Existing law requires a charitable fundraising platform or platform charity that performs, permits, or otherwise enables acts of solicitation to, before a person can complete a donation or select or change a recipient charitable organization, provide conspicuous disclosures, including, among other things, a statement that a recipient charitable organization may not receive donations or grants or recommended donations, with an explanation identifying the most pertinent reasons why a recipient charitable organization may not receive the funds. This bill would also require the statement described above to include an explanation of what alternative disposition will occur for the funds, as specified, and would make other conforming changes. donated funds that are not sent to a recipient charitable organization. The bill would provide that a charitable fundraising platform or platform charity that performs, permits, or otherwise enables specified acts of solicitation, when soliciting platform users at the time of checkout to make a donation of no more than $10, or higher if adjusted for inflation, may make certain disclosures through a conspicuous hyperlink, as prescribed, and is not required to comply with specified regulations. The bill would also make other conforming changes. Existing law requires that the rules and regulations established by the Attorney General for the administration of the registry include, among other things, provisions that specify the contents of the form and other information to be provided by a charitable fundraising platform for registration and in annual reports filed with the registry. This bill would require a person or entity that is required to file registration, reporting, or other submissions with the registry to do so through the Attorney General’s online filing service in accordance with rules and regulations of the Attorney General. The bill would require the online filing service, by January 1, 2028, to support comprehensive electronic administration, as prescribed. The bill would make various other clarifying and technical changes to the act. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 12599.9 of the Government Code is amended to read: 12599.9. (a) For purposes of this section: (1) “Charitable fundraising platform” means any person, corporation, unincorporated association, or other legal entity that uses the internet to provide an internet website, service, or other platform to persons in this state, and performs, permits, or otherwise enables acts of solicitation to occur, which includes the following and any similar activity: (A) Lists or references by name one or more recipient charitable organizations to receive donations or grants of recommended donations made by donors who use the platform. (B) Permits persons who use the platform to solicit donations for or recommend donations to be granted to one or more recipient charitable organizations through peer-to-peer charitable fundraising. (C) Permits persons who use the platform to select one or more recipient charitable organizations to receive donations or grants of recommended donations made by a platform, platform charity, or other third party person, based on purchases made or other activity performed by persons who use the platform. (D) Lists or references by name of one or more recipient charitable organizations to receive donations or grants of recommended donations made by the platform based on purchases made or other activity performed by persons who use the platform. (E) Provides to charitable organizations a customizable internet-based website, software as a service, or other platform that allows charitable organizations to solicit or receive donations on or through the platform, including through peer-to-peer charitable fundraising. The customizable platform provided by the charitable fundraising platform does not include the charitable organization’s own platform, but may integrate with the charitable organization’s platform. (2) “Charitable fundraising platform” does not include: (A) A charitable organization’s own platform that solicits donations only for itself. (B) A vendor that solely provides technical or supportive services to a charitable fundraising platform so that the charitable fundraising platform can function and operate, including vendors used for hosting or domain services, security certificates, internet access, internet application development, or digital payment processing. If that vendor also performs, permits, or otherwise enables acts of solicitation described by paragraph (1) on its own platform to persons in this state, it is a charitable fundraising platform for its own platform. (C) A sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization. (D) A person or entity that meets the definition of both a commercial fundraiser for charitable purposes and a charitable fundraising platform shall be only a commercial fundraiser for charitable purposes when the person or entity for compensation performs any of the following acts of solicitation: (i) Direct mail solicitation, excluding electronic mail or messages. (ii) Estate gift or estate planning solicitation. (iii) In-person solicitation through a fundraising event, door-to-door or other public spaces, or a vending machine or similar equipment that does not use a person to perform the solicitation. (iv) Noncash solicitation. (v) Nonincidental acts of solicitation that are not internet based, including solicitation through print, radio, or television. (vi) Solicitation involving receiving something of value, or a chance to win something of value, in connection with a donation. (vii) Telephone solicitation. (E) A person or entity that meets the definition of both a commercial coventurer and a charitable fundraising platform solely under subparagraph (D) of paragraph (1) shall be only a commercial coventurer when the acts of solicitation through an internet website, service, or other platform to persons in this state are for six or fewer recipient charitable organizations per calendar year, and the commercial coventurer complies with subdivision (b) of Section 12599.2. (3) “Good standing” means that a platform charity, recipient charitable organization, or other charitable organization’s tax-exempt standing status has not been revoked by the Franchise Tax Board, or the platform charity or charitable organization is not prohibited from soliciting or operating in the state by the Attorney General on the basis of a cease and desist order, delinquency, suspension, or revocation by the Attorney General pursuant to the procedures in Section 12599.12. (4) “Peer-to-peer charitable fundraising” means a solicitation campaign created by a person to support a recipient charitable organization, through or with other assistance provided by a charitable fundraising platform or platform charity. (5) “Platform charity” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1 that facilitates acts of solicitation on a charitable fundraising platform that includes either of the following and any similar activity: (A) Solicits donations through a charitable fundraising platform for itself from donors who use the charitable fundraising platform with the implied or express representation that the platform charity may grant donations to recipient charitable organizations. (B) Grants funds to recipient charitable organizations based on purchases made or other activity performed by persons who use a charitable fundraising platform. (6) “Platform charity” does not include a sponsoring organization of donor-advised funds, as defined in subdivision (d) of Section 4966 of the Internal Revenue Code, that solicits donors to open donor-advised fund accounts or similar accounts, receives recommendations from donors on charitable organizations that may receive grants of funds previously contributed to the sponsoring organization for a donor’s donor-advised fund account, and the sponsoring organization does not list or reference by name one or more recipient charitable organizations for solicitation purposes on its platform for persons who do not have advisory privileges with respect to the granting of funds in a donor-advised fund of the sponsoring organization. (7) “Recipient charitable organization” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1, that is listed or referenced by name on a charitable fundraising platform or by a platform charity for solicitation purposes. (b) (1) A charitable fundraising platform is a trustee for charitable purposes subject to the Attorney General’s supervision. A charitable fundraising platform shall, before soliciting, permitting, or otherwise enabling solicitations, register with the Attorney General’s Registry of Charities and Fundraisers, under oath, on a form provided by the Attorney General. Persons or entities that meet the definition of a charitable fundraising platform and platform charity shall register as a charitable fundraising platform. (2) Registration shall be renewed each year. The Attorney General shall impose a registration and renewal fee that shall be deposited and used in accordance with Section 12587.1. (3) A platform charity is a trustee for charitable purposes subject to the Attorney General’s supervision. A platform charity shall register as a trustee in accordance with Section 12585 if not already registered. When a charitable fundraising platform partners with a platform charity, the platform charity shall promptly notify the Attorney General’s Registry of Charities and Fundraisers of the partnership, unless previously specified through the registration of the platform charity or charitable fundraising platform. (c) A charitable fundraising platform or platform charity shall file annual reports, under oath, with the Attorney General’s Registry of Charities and Fundraisers on a form provided by the Attorney General. The reports shall: (1) Enable the Attorney General to ascertain whether charitable funds have been properly solicited, received, held, controlled, or distributed in compliance with this article, including, but not limited to, providing information on the number of donations made, the amounts raised, the length of time for distributing donations or grants of recommended donations, the fees charged by or through a charitable fundraising platform or platform charity, and information on recipient charitable organizations or other charitable organizations that were sent or were not sent donations or grants of recommended donations. (2) Not require the disclosure of personally identifiable information of donors or other persons using a charitable fundraising platform. (d) (1) A platform charity shall have good standing in order to facilitate acts of solicitation on a charitable fundraising platform. (2) A charitable fundraising platform or platform charity shall only solicit, permit, or otherwise enable solicitations, or receive, control, or distribute funds from donations for recipient charitable organizations or other charitable organizations in good standing. To determine good standing of recipient charitable organizations or other charitable organizations, a charitable fundraising platform or platform charity may rely on electronic lists periodically published by the Franchise Tax Board and t [Text truncated for display. Full text available on Congress.gov.]