On March 24, 2024, California approved final regulations governing charitable fundraising platforms (CFPs) and platform charities (PCs). These regulations implement Assembly Bill No. 488 (AB 488), an act that generally went into effect on January 1, 2023. 

You can find the new regulations codified in Government Code Section 12599.9 here. This post, the second of two, will cover, very generally, the following regulations:

• Section 320 (time frames for forwarding donations, alternate charities)
• Section 321 (information owed to recipient charities)
• Section 322 (information owed to donors)
• Section 323 (handling of donations in peer-to-peer fundraising)

Part 1 of our summary of these regulations covering Sections 314-319 can be found here.

Solicitation Types from the Code

Type 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.

Type 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.

Type 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, PC, or other third party person, based on purchases made or other activity performed by persons who use the platform.

Type D: Lists or references by name 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.

Type 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 CFP does not include the charitable organization’s own platform, but may integrate with the charitable organization’s platform.

Lengths of Time for Sending Donations by CFPs and PCs; Selection of Alternate Charitable Organizations (effective January 1, 2025)

Generally, CFPs and PCs that engage in solicitation type A or B must promptly send donations, or grants of recommended donations, in compliance with all of the following:

• Donated funds for consenting recipient charitable organizations (Recipient Charities) must be sent no later than 30 days after the end of the month in which the donations or recommended donations are made (unless the Recipient Charity is not eligible)
• Donated funds for non-consenting Recipient Charities must be sent no later than 45 days after the end of the month in which the donations or recommended donations are made (unless the Recipient Charity is not eligible)
• A CFP or PC must determine whether a Recipient Charity is eligible to be sent donated funds within the required time period. If the Recipient Charity is not eligible, the CFP or PC must notify donors in writing no later than 30 days after the determination of eligibility, and request them to recommend an alternate charitable organization (Alternate Charity). Written notification may be sent electronically. Donors will then have 30 days from the date of written notification to recommend an Alternate Charity. If an Alternate Charity is timely recommended, the CFP or PC must send the donated funds to the Alternate Charity no later than 30 days from the last date donors could timely recommend an alternate (unless the CFP or PC determines the Alternate Charity is not eligible). If an Alternate Charity is timely recommended and determined to be not eligible, the CFP or PC must select another Alternate Charity, and send donated funds to the Alternate Charity selected by the CFP or PC no later than 30 days from the last date donors could timely recommend an Alternate Charity. If an Alternate Charity is not timely recommended, the CFP must select an Alternate Charity, and send the donated funds to the Alternate Charity no later than 30 days from the last date donors could timely recommend an Alternate Charity.

Generally, CFPs and PCs that engage in solicitation type C or D must promptly send donations, or grants of recommended donations, in compliance with all of the following:

• When donated funds are not subject to any minimum threshold amounts before they are sent, the donated funds must be sent to a Recipient Charity on a quarterly basis or more frequently (unless the Recipient Charity is not eligible).
• When donated funds are subject to minimum threshold amounts before they are sent, such minimum threshold amounts may not exceed ten dollars ($10.00). Once the minimum amount is reached, the donated funds must be sent to a Recipient Charity on a quarterly basis or more frequently (unless the Recipient Charity is not eligible). If the minimum threshold amount is not reached after four consecutive quarters, the donated funds must be sent to a Recipient Charity no later than 30 days after the fourth quarter ends (unless the Recipient Charity is not eligible).
• A CFP or PC must determine whether a Recipient Charity is eligible to be sent donated funds within the time period for when donated funds must be sent. If it has been determined that a recipient charitable organization is not eligible, the CFP or PC mustl then select an Alternate Charity, and send the donated funds to the alternate no later than 30 days after the determination of eligibility.

Generally, CFPs and PCs that engage in solicitation type E must promptly send donations in compliance with all of the following:

• When donations are solicited by and made to a charitable organization, including when a charitable organization manages peer-to-peer charitable fundraising campaigns (P2P Fundraising) enabled by the CFP, donations must be sent no later than five business days after the donations are made, unless the charitable organization is not eligible to be sent the funds. A CFP must determine whether a charitable organization is eligible to be sent donations on a monthly basis or more frequently. If it has been determined that a charitable organization is not eligible, the CFP must select an Alternate Charity, and send the donations to the Alternate Charity no later than 30 days after the determination of eligibility.
• When donations or recommended donations are made to a CFP or PC and the CFP also performs, permits, or otherwise enables solicitation type A or B, donated funds must be promptly sent in compliance with the requirements above for solicitation type A or B.

Information for Charitable Organizations Regarding Donations Sent by CFPs and PCs (effective January 1, 2025)

A CFP or PC that engages in solicitation type A or B or any similar activity must provide the following information regarding donations, or grants of recommended donations, sent to a Recipient Charity. This information can be provided with the donated funds, or through a secure platform that authenticates the Recipient Charity, as long as the Recipient Charity is made aware of the platform and not financially charged for platform access:

1. The legal name of the CFP through which a donation or recommended donation was made.
2. The total number of donations or recommended donations made.
3. The time period during which donations or recommended donations were made.
4. When requested by a Recipient Charity, the date each donation or recommended donation was made, and the date each donation or grant of a recommended donation was sent.
5. The total dollar amount of all donations or recommended donations made before fees were imposed, the total amount of all fees imposed, the total amount of all donations or recommended donations after fees were imposed, and the total amount of all donated funds sent. When requested by a Recipient Charity, the amount of each donation or recommended donation before fees were imposed, the amount of the fees imposed for each donation or recommended donation, the amount of each donation or recommended donation after fees were imposed, and the amount of each of the donated funds sent.
6. The name and contact information (name and email address/phone number) of a donor who chose to share their information, unless a Recipient Charity has not given prior written consent for using its name or information in a solicitation. Also provide the total amount donated for each donor who chose to share their information. When requested by a recipient charitable organization, the amount of each donation or recommended donation for each donor who chose to share their information.
7. The name and contact information (name and email address/phone number) of persons engaging in P2P Fundraising who chose to share their information, when applicable, unless a Recipient Charity has not given prior written consent for using its name or information in a solicitation.
8. When donors or persons engaging in P2P Fundraising restrict or designate a preference as to how donations or recommended donations may be used by a Recipient Charity, information on how the funds may be used.

A CFP or PC that engages in solicitation type C or D or any similar activity must provide the following information regarding donations, or grants of recommended donations, sent to a Recipient Charity. This information can be provided with the donated funds, or through a secure platform that authenticates the Recipient Charity, as long as the Recipient Charity is made aware of the platform and not financially charged for platform access:

1. A description of the purchasing or other activity performed by platform users who caused a donation or grant of a recommended donation to be sent to the Recipient Charity, along with the time period during which the purchasing or other activity was performed.
2. The amount of each donation or grant of a recommended donation, with an accounting of how it was calculated, including the number of purchases made or other activities performed, the donation amount per purchase or other activity, and any fees that were imposed.

A CFP that engages in solicitation type E must provide the following information regarding donations sent to a charitable organization:

1. When donations are solicited by and made to a charitable organization, including when a charitable organization manages P2P Fundraising campaigns enabled by the CFP, provide the date each donation was made by the donor, the date each donation was sent, the amount of each donation before fees were imposed, the amount of the fees imposed for each donation, the amount of each donation after fees were imposed, and the amount of each donation sent. This information can be provided with the donations, or through the CFP.
2. When donations or recommended donations are made to a CFP or PC, and the CFP also engages in solicitation type A or B, provide the information required of a CFP that engages in solicitation type A or B .

Information for Donors/Persons Regarding Donations Sent by CFPs and PCs (effective January 1, 2025)

A CFP or PC that engages in solicitation type A or B must provide an ability for donors to find out whether their donations or recommended donations were sent to a Recipient Charity or an Alternate Charity, if donors choose to learn this. Such information must be made available to donors no later than 15 business days after the donated funds were sent and may be provided through written notification, including electronically or through a platform (as long as persons are not charged financially for platform access).

A CFP or PC that engages in solicitation type C or D must provide platform users who made purchases or performed other activity that caused donated funds to be sent, an ability to find out that the total amount of donated funds sent to a Recipient Charity or an Alternate Charity included funds based on their purchases or other activity, if platform users choose to learn this. Such information must be made available to platform users no later than 15 business days after the donated funds were sent. This does not require informing platform users how much of the donated funds sent is attributed to their purchases or other activity.

Handling of Donations by Persons Engaging in P2P Fundraising (effective March 26, 2024)

When persons engaging in P2P Fundraising are sent donated funds from a CFP or PC that engages in solicitation type B, these persons must not divert or misuse the donated funds, and must send the donated funds to the Recipient Charity referenced in solicitations no later than 10 business days after receipt. Persons engaging in P2P Fundraising that fail to send donated funds to the Recipient Charity no later than 10 days after receipt are required to register as trustees with the Attorney General.