Business Law

Business Law Annual Review ISSUE 1, 2023 (ANNUAL REVIEW)

SELECTED 2022 DEVELOPMENTS IN NONPROFIT ORGANIZATIONS LAW AND NONPROFIT ORGANIZATIONS COMMITTEE HIGHLIGHTS

Written by Steven Chiodini*

Throughout 2022, the Nonprofit Organizations Committee ("NPO Committee") has continued to offer regular monthly updates on California nonprofit legislation of interest to nonprofit organizations, including also those bills in which the NPO Committee itself has provided for legislators input of benefit to the California nonprofit community.

In addition, California regulatory activity of interest to nonprofits has been reported on at NPO Committee meetings by the various California regulators referred to below. Selected significant California regulatory nonprofit developments in 2022 include the following by the California Attorney General:

Charitable Fundraising Platforms and Platform Charities: The Attorney General issued two rounds of proposed rulemaking under Assembly Bill 488 ("AB 488"), initially on May 27, and subsequently with modifications on November 21. Although AB 488 took effect as of January 1, 2023, the November modifications state that the Department of Justice proposes to delay the effective date of the regulations to January 1, 2024. Among other things, the regulations set new registration, reporting, disclosure, and consent requirements for Internet fundraising platforms and "platform charities" that facilitate fundraising on these platforms.

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