California law amends charity compliance rules, easing IRS good standing requirements
What happened
California passed Assembly Bill 2221, which amends the regulatory framework for online charitable fundraising platforms. The legislation updates the procedures governing the “good standing” of charitable organizations. Previously, under AB 488, charities could only facilitate donations for organizations whose tax-exempt status had not been revoked by the Internal Revenue Service or the state.
Why it matters
The changes in Assembly Bill 2221 are intended to streamline operations and address compliance burdens that had previously caused thousands of charities to lose access to online donations. The updates modify the requirements that previously tied platform donations to a charity's good standing status.
Who's involved
- Internal Revenue ServiceThe Internal Revenue Service, whose revocation of tax-exempt status was a key factor in charity good standing.
- CaliforniaThe jurisdiction that passed Assembly Bill 2221 to regulate online charitable fundraising platforms.
- MetaAn American technology company that operates online charitable fundraising platforms.
Keep exploring
The entities involved
-
Internal Revenue Service
revenue service of the United States federal government