Assembly review finds AB 488 strengthened oversight of online fundraisers but implementation has disrupted some nonprofits

SACRAMENTO — The California State Assembly on Feb. 10 examined how AB 488 (2021) — the law that created a new regulatory category for charitable fundraising platforms — has worked in practice, with officials and industry representatives saying the statute clarified responsibilities but that implementation problems have disrupted fundraising for some charities.

Assemblymember Erwin, the bill’s author, told the outcomes review hearing that AB 488 was intended to “modernize California's charitable solicitation laws” and to give the Department of Justice tools to ensure donor protections online. “AB 488 from 2021 is on that chart and it is currently yellow,” Erwin said, meaning the law is still being monitored for full implementation.

Brian Gerard Armstrong, a supervising deputy attorney general, outlined the Attorney General’s implementing regulations and the office’s enforcement work. Armstrong said the regulations (adopted in phases) require registration and reporting by platforms and set disclosure, consent and distribution rules intended to prevent deception and honor donor intent. “We are committed to continuing to take action where appropriate to safeguard online donations and protect charities and donors from fraud, deception, and other wrongdoing,” Armstrong said.

Armstrong also described the Justice Department’s effort to modernize the Registry of Charities and Fundraisers with an…