Fundraising rules in California

Registering a charity or school

A charity registers with the Attorney General's Registry of Charities and Fundraisers within 30 days of first receiving charitable assets and renews each year, with a fee set by its revenue. A nonprofit organized to offer private elementary or high school instruction, or run mainly as an educational institution, and a religious organization are exempt by law with no filing needed and keep that exemption when they hire a paid fundraiser, though the Registry offers a voluntary exemption review on written request and the law does not clearly cover a separate foundation that supports a school rather than running it.

Professional solicitors

A paid solicitor, anyone paid to solicit for a charity in California, receive or control the funds, or employ paid solicitors, registers with the Attorney General before soliciting, files a notice naming the charity at least 10 working days before each campaign, may solicit only for a registered or exempt charity, and files a financial report for each campaign by January 30. A charity may void its contract if the solicitor was not registered before soliciting.

Fundraising counsel

Fundraising counsel, paid other than by a percentage to plan or advise on solicitation without soliciting or handling the money, registers with the Attorney General before providing services, files a notice at least 10 working days before working for a charity, and files a yearly report listing the charities it served. An adviser paid a percentage of the funds raised, or who controls the funds, falls within the paid solicitor definition and registers as one, while an adviser paid $25,000 or less a year is not treated as counsel.

References

• Registry Reports (fundraiser annual summary reports and the list of charities that may not operate or solicit)
• IRS Tax Exempt Organization Search

Regulator: California Department of Justice, Office of the Attorney General, Registry of Charities and Fundraisers