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 Foundation has launched a dedicated newsroom with the latest updates, grant announcements, and media coverage, plus contact information for press inquiries.
CA nonprofit professionals can monitor this page for funding opportunities and partnership announcements relevant to their work in the state.
CalNonprofits developed a nonprofit 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.
California nonprofit professionals can use this authoritative, state-specific resource to ensure their organizations meet key legal and regulatory requirements.
The California Department of Justice Office of the Attorney General maintains the Registry of Charitable Trusts, an online database where the public and professionals can search registration status and view annual financial reports (Form 990 or 990 EZ) for active charitable organizations and commercial fundraisers in the state.
Nonprofit professionals in CA must ensure their organizations remain registered and compliant with annual reporting requirements, and can use this tool to verify their own status or research peer organizations.
The California Attorney General regulates charities, professional fundraisers who solicit on their behalf, and other entities that hold charitable assets or operate charitable activities through the Registry of Charitable Trusts.
Nonprofit professionals in CA must understand this oversight framework to ensure compliance with state registration and reporting requirements.
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3 stories
Unrelated business income tax applies when an activity is regularly carried on, is a trade or business, and is not substantially related to the exempt purpose. Common surprises: corporate-sponsored events with naming rights that look like advertising, affinity credit-card royalties that include co-marketing services, and gift-shop sales of items unrelated to the mission.
UBIT exposure can cost both tax and exempt status if the unrelated business becomes substantial. The line between sponsorship (excluded) and advertising (included) is narrow and case-specific.
Negligent-screening claims arise not from failing to have a screening policy, but from failing to follow the policy that exists. A documented policy with inconsistent enforcement is harder to defend than no policy at all, because the deviation is evidence of negligence.
Insurance carriers tighten coverage on organizations with screening-process gaps. The cost of consistent enforcement is small; the cost of a single uninvestigated incident can close the organization.
Most states require charities soliciting donations from their residents to register before solicitation, regardless of where the charity is based. "Solicitation" includes web fundraising pages accessible to residents, not just direct mail. Compliance gaps surface during state attorney-general inquiries or unrelated litigation discovery.
Penalties range from civil fines to suspension of solicitation rights in the state. Larger consequences include negative coverage in donor research databases that fund foundation grants.
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