Article: Assembly Bill 488 - Impact to donations to charities based in California

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In January 2023, the state of California’s Assembly Bill 488 (AB-488) went into effect. Included in this bill is a provision that prohibits platforms like Groundswell from distributing funds on behalf of our users to California-based charities identified as “delinquent” by the California AG’s office. Delinquency means that the charity is not in good standing with the State of California due to failure to submit both California-specific reports as well as standard IRS reports. Note: the law also applies to charities that may be based in other states, but are registered with the State of California to conduct fundraising activities in California.

What this means for making donations on Groundswell: Groundswell runs its dataset of nonprofits on the platform against the list of charities currently with a “delinquent” status, and removes our users’ ability to donate to those charities until the charity is in good standing with the State of California. We check against the list whenever it is updated by the Attorney General’s office, and remove the “cannot donate” restriction when the charity is no longer in “delinquent” status with the State of California. 

As a Donor-Advised Fund, the Groundswell Charitable Foundation must comply with this requirement - which means we legally cannot disburse funds to any California-based charity that has not submitted all necessary forms to the Attorney General’s office.

If a nonprofit wishes to find out more information about its status with the State of California, they can go to the CA Attorney General's website, or contact the Delinquency Program directly using the link here. It can take approximately 30-90 days to process forms and supporting documentation to remove a charity from the delinquent list.

In accordance with this new law, any charity that has a delinquent status in the State of California will have the below alert in their Groundswell profile: 

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