Nonprofit in California

California Nonprofit Intel

Thursday, May 21, 2026
3 min read
7 stories

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.

1

California Nonprofit Headlines

4 stories

1.1

Blue Shield of CA Foundation: Latest Grant News & Press Updates.i***@calnonprofits.org

The Blue Shield of California Foundation has published its latest news, grant announcements, and media coverage on its newsroom page.i***@calnonprofits.org

Why It Matters

California nonprofit professionals can monitor this foundation's funding priorities and press mentions to identify potential grant opportunities and partnership alignment.i***@calnonprofits.org

Sources:Source
1.2

CalNonprofits Releases Updated CA Nonprofit Compliance Checklist with State Agencies.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

Why It Matters

This resource helps CA nonprofit professionals ensure they meet state-specific regulatory requirements and stay current on compliance obligations.i***@calnonprofits.org

Sources:Source
1.3

CA Attorney General's Registry of Charitable Trusts: Verify Compliance & Access Public Filings.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

Why It Matters

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

Sources:Source
1.4

California Attorney General Oversees Registry of Charitable Trusts.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

Why It Matters

Nonprofit professionals in California must understand these oversight requirements to maintain compliance and avoid enforcement actions.i***@calnonprofits.org

Sources:Source
Sponsored

Advertise Here

Reach professionals in this market

Learn More
2

Background & Context

3 stories

2.1

The restricted-fund violation auditors find most often.i***@calnonprofits.org

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

Why It Matters

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

2.2

A conflict-of-interest policy that fails the test.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

Why It Matters

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

2.3

Form 1023-EZ has eligibility limits that most applicants miss.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

Why It Matters

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

Never Miss an Update

Get California nonprofit intelligence delivered to your inbox every morning.

Subscribe Free

Subscribe Free

Get California nonprofit intelligence delivered daily.

Subscribe Now

Issue Summary

DateMay 21, 2026
Stories7
Sections2
Read Time3 min
Sponsored

Advertise Here

Reach professionals in this market

Learn More

Browse Archive

View all past issues

National Partner

Reach Professionals Nationwide

Feature your brand across the U.S., Canada, and select international markets and 10 industry verticals.

Become a National Partner