Welcome to your daily briefing on nonprofit developments in California. Today we're covering 7 key stories including updates on california nonprofit headlines, background & context. Let's dive in.
4 stories
The Blue Shield of California Foundation has published its latest news, grant announcements, and media coverage on its newsroom page.i***@calnonprofits.org
California nonprofit professionals can monitor this foundation's funding priorities and press mentions to identify potential grant opportunities and partnership alignment.i***@calnonprofits.org
CalNonprofits developed a compliance checklist in consultation with the California Attorney General's Office and the CA Franchise Tax Board, available as a downloadable PDF with an accompanying video.i***@calnonprofits.org
This resource helps CA nonprofit professionals ensure they meet state-specific regulatory requirements and stay current on compliance obligations.i***@calnonprofits.org
The California Department of Justice Office of the Attorney General operates the Registry of Charitable Trusts, which provides online searchable public files on active charitable organizations and supervises charities and commercial fundraisers in the state.i***@calnonprofits.org
Nonprofit professionals in CA can use this registry to confirm their own organization's registration status, review competitors' Form 990 filings, and ensure compliance with annual reporting requirements that apply regardless of federal tax-exempt status.i***@calnonprofits.org
California's Attorney General regulates charities, professional fundraisers who solicit on their behalf, and other entities that hold charitable assets or operate charitable purposes through the Registry of Charitable Trusts.i***@calnonprofits.org
Nonprofit professionals in California must understand these oversight requirements to maintain compliance and avoid enforcement actions.i***@calnonprofits.org
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3 stories
Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.i***@calnonprofits.org
State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.i***@calnonprofits.org
The IRS-recommended COI policy requires (1) annual disclosure by all directors and key employees, (2) a process for review of any disclosed conflict, (3) recusal procedures, and (4) documentation in board minutes. Policies that have only the disclosure form without the review and recusal process do not satisfy the recommendation.i***@calnonprofits.org
A weak COI policy is a Schedule L disclosure waiting to happen, and Schedule L disclosures correlate with future IRS examination selection.i***@calnonprofits.org
The streamlined Form 1023-EZ is available only to organizations meeting specific limits on projected revenue, assets, and activity types. Filing 1023-EZ when ineligible produces a determination that is technically valid but vulnerable to retroactive revocation if discovered. The full 1023 is harder to file but harder to challenge.i***@calnonprofits.org
Loss of exemption is retroactive to the original determination, exposing the organization to back-tax liability. The eligibility checklist is the only protection.i***@calnonprofits.org
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