California’s AB 488 created a first-of-its-kind regulatory framework aimed at the online giving ecosystem, not just traditional commercial fundraisers. The statute and implementing regulations reach crowdfunding sites, peer to peer tools, donation widgets, “round up at checkout” programs, and other services that perform, permit, or otherwise enable charitable solicitations involving California residents.
For nonprofits, AB 488 matters even if the organization is not based in California. Platform choice and donor geography can pull fundraising activity into California’s regulatory orbit, sometimes without the charity realizing it.
Who Is Regulated, and Who Is Not
AB 488 does not apply to all online fundraising activity. The statute is directed primarily at third parties that provide infrastructure or services enabling charitable solicitations, particularly where donors may not clearly understand who is conducting the solicitation or controlling the donated funds.
The law regulates two principal categories of actors.
Charitable Fundraising Platforms
Charitable fundraising platforms are entities that use the internet to provide a website, service, or other platform that enables charitable solicitations directed to persons in California. The definition is intentionally broad and is aimed at intermediaries that sit between donors and charities.
The following activities are generally outside the scope of this category:
- A charity fundraising on its own website, so long as it is soliciting donations solely for itself
- A charity using a third-party payment processor that does not control or present solicitations
- Vendors providing backend services such as website hosting, donation processing, or technical support without donor-facing solicitation activity
By contrast, platforms are more likely to fall within the statute when they:
- Host fundraising pages for multiple charities
- Facilitate peer to peer fundraising or donor-directed beneficiary selection
- Present charitable solicitations as part of a broader online service or marketplace
- Control how donations are solicited, displayed, or routed
Platform Charities
Platform charities are nonprofit organizations that partner with charitable fundraising platforms to facilitate solicitations. Depending on how the arrangement is structured, a platform charity may:
- Receive, hold, or distribute donated funds
- Exercise discretion over the selection of beneficiary charities
- Act in a trustee-like capacity with respect to charitable assets
- Share operational control of fundraising activity with a platform
Not every charity that uses an online platform is a platform charity. A nonprofit that simply receives donations through a platform and retains control over its funds, messaging, and donor relationships will often fall outside this category. The designation becomes more likely where the nonprofit plays an intermediary role in the fundraising process or shares operational responsibility with the platform.
Overlapping and Fact-Specific Roles
Because AB 488 focuses on function rather than labels, classification depends on how solicitation activity, technology, and fund flow operate in practice. In some arrangements:
- A single organization may fall into more than one category
- The same platform may be regulated differently depending on the fundraising model used
- Small changes in fund flow or donor presentation may change the legal analysis
For that reason, nonprofits and platform partners should evaluate each online fundraising arrangement individually rather than relying on generalized assumptions about applicability.
Key Effective Dates and Recurring Deadlines
Charitable fundraising platforms must register with the California Attorney General before enabling solicitations. Registrations must be renewed annually by January 15 if the platform will operate during that year.
Platforms must also file an annual activity report by July 15 covering the prior calendar year. For 2024, reporting covers activity beginning June 12 through December 31.
Certain additional requirements, including consent-related obligations, become more prominent beginning January 1, 2025.
The Good Standing Requirement Is Central
One of AB 488’s most consequential features is the requirement that platforms and platform charities may only solicit for, or handle funds for, charitable organizations that are in good standing. For this purpose, good standing generally means that the charity’s tax-exempt status is current and that it is not prohibited from operating or soliciting by California authorities.
For charities, this has immediate practical consequences. If an organization’s filings lapse or its status becomes unclear, platforms may be required to stop facilitating donations on its behalf. As a result, compliance failures that might once have seemed technical can now directly interrupt fundraising.
AB 488 Is Operational Regulation, Not Just Registration
AB 488 does more than impose registration and reporting requirements. The statute and regulations also govern how online solicitations are presented, how donor information is handled, how funds are transferred, and what disclosures must be made to donors and recipient charities.
Common pressure points include donor-facing disclosures designed to prevent confusion about who is receiving funds, consent and use-of-name issues when a platform features a charity in solicitations, and timing and documentation requirements for distributing donations and reporting activity.
These rules reflect California’s effort to regulate not only bad actors, but also structural features of modern online fundraising that can obscure accountability.
What Nonprofits Should Do Now
Although nonprofits are not always the primary registrants under AB 488, charities can take several steps to reduce risk and avoid fundraising disruptions.
Confirm Good Standing
Organizations should confirm that they are current with required federal and California filings and that their status appears correctly in public charity registries. This is especially important for nonprofits that rely heavily on national platforms.
Inventory Online Fundraising Channels
Charities should identify every mechanism that accepts donations on their behalf, including donation processors, peer to peer platforms, event ticketing add-ons, workplace giving programs, and retail checkout campaigns. AB 488’s definitions are broad, and even small or embedded tools may implicate platform obligations.
Ask Platform Partners Direct Questions
Nonprofits should understand whether platforms they use are registered, how good standing is verified, what documentation is required for consent, and how the platform responds if a charity’s status changes mid-campaign.
Treat Consent as a Governance Issue
Where a platform requires authorization to use a charity’s name or logo, that consent should be documented, controlled, and consistent with the organization’s brand and donor communication practices.
Closing Thought
AB 488 reflects a broader shift in how regulators view online fundraising infrastructure. What was once treated as informal technical support is now subject to comprehensive charitable oversight. California’s approach is likely to influence other jurisdictions, and the compliance burden will continue to land across the entire fundraising ecosystem. At the same time, the framework is intended to provide greater protection for both charities and donors participating in online fundraising.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.