Here at Givebutter, we understand the importance of staying compliant with regulations so you can focus on your mission. This article summarizes the impact of California Assembly Bill 488 (CA AB-488) on nonprofits using our platform.
About California AB-488 š
Enacted in January 2023 and finalized in April 2024, CA AB-488 restricts fundraising by charities designated as "delinquent" by the California Attorney General's (AG) office.
This means donation platforms (like Givebutter) cannot process donations for charities not in good standing with the California AG. This applies to all nonprofits that accept money from California residents.
How it affects you š
If the California AG's office flags a Givebutter user as "delinquent" or otherwise ineligible, they cannot solicit or receive donations through Givebutter until their status is rectified. This means donations cannot be processed, and funds raised on Givebutter will be held.
Givebutter cannot process or disburse donations to organizations classified as "delinquent" until they regain good standing with the California AG's office.
California nonprofits with annual revenue under $50,000 must file both the standard IRS Form 990 (or 990-EZ) and the California Form CT-TR-1, as now required by CA AB-488.
How to comply ā
Givebutter is committed to providing a platform that allows nonprofits to thrive, including those receiving funds from donors in California. We will continue to monitor CA AB-488 developments and provide updates as needed.
File the required forms: To ensure compliance, file both the IRS Form 990 (or 990-EZ) and the California Form CT-TR-1.
Monitor your status: Regularly check your status with the California AG's Registry of Charitable Trusts to identify any missing requirements.
Contact the Delinquency Program: The California Attorney Generalās Office will have the most relevant and up-to-date information on your organizationās status and the next steps required to return to good standing with the state.
FAQ š¤
My nonprofit has suspended or revoked status.
This is not classed as "good standing." If your nonprofit has delinquent, suspended, or revoked status, you must regain good standing with the California AG before you can use Givebutter.
How can I check if my nonprofit is delinquent?
If your nonprofit appears on the May Not Operate or Solicit for Charitable Purposes list, Revoked Exempt Organizations list, or the IRS Automatic Revocation of Exemption list, your organization is not in good standing.
How long does it take to get "delinquent" status lifted?
According to the California Attorney Generalās website, nonprofits can expect 30-90 days of processing time for all forms and supporting documentation from the date received. This timing is the responsibility of the California Attorney General's Office and is not managed by Givebutter.