SACRAMENTO – Assemblywoman Jacqui Irwin (D-Thousand Oaks) introduced Assembly Bill 556 to uphold consumer confidence in charitable giving. The measure is sponsored by Attorney General Kamala D. Harris. Specifically, the bill closes a loophole in the law regarding commercial fundraisers who raise money on behalf of nonprofit organizations and extends a 10-year statute of limitations to include commercial fundraisers and other third parties who aid and abet charity misconduct.
“As a city councilmember and board member of local nonprofits in Ventura County, I saw the enormous positive impact that charities have on our communities,” said Assemblywoman Irwin. “AB 556 will help keep bad behavior by a few from undermining the confidence that Californians have in the more than 70,000 active nonprofit organizations doing great work in California. I commend Attorney General Kamala Harris for her work on this issue and look forward to working with her on AB 556.”
For-profit companies that raise money on behalf of charities are currently required to disclose that a portion of donations would be used to pay for the fundraising services. AB 556 closes a loophole by ensuring that companies that establish themselves as “fundraising counsel” have the same disclosure requirements as other commercial fundraisers. AB 556 also expands the statute of limitations for charitable misconduct lawsuits to 10 years to ensure that the Attorney General can hold commercial fundraisers, fundraising counsel, and other third party entities that aid and abet charity fraud accountable.
“Californians should have complete confidence that the donation they make to a charitable organization will go toward the cause they support, and feel secure knowing their gift won’t be diverted to the pockets of a third-party, for-profit fundraiser,” said Attorney General Harris. “I thank Assemblymember Irwin for standing with me to increase transparency and empower Californians with the information they need to donate wisely.”
Across California, non-profit organizations are critical service providers, robust with human and financial capital, and uniquely representative of the visions and values of California’s diverse communities. According to Causes Count, a comprehensive report on California’s nonprofit sector issued by the California Association of Nonprofits (CalNonprofits) in late 2014, California’s charitable organizations contribute 15 percent — or one-sixth — of California’s Gross State Product.
Assemblymember Irwin’s website: http://asmdc.org/irwin
View the Attorney General’s report on charitable solicitation campaigns conducted by commercial fundraisers here.