Understanding California AB 488 and How it May Affect Your Organization – Doubleknot

What is California AB 488?

If your nonprofit organization or charity is fundraising through our software, it is important to understand California’s Supervision of Trustees and Fundraisers for Charitable Purposes Act (AB 488). As online fundraising continues to expand, California introduced this law to promote greater transparency and accountability in how online companies solicit and collect charitable donations. AB 488 governs how charitable fundraising platforms (CFPs) process donations for organizations that solicit or collect contributions from California donors on behalf of charitable organizations. It requires, among other things, that platforms ensure that such charities are in good standing with the following regulatory agencies before soliciting and collecting donations originating from California residents.

The Internal Revenue Service (IRS)
The California Franchise Tax Board (FTB)
The California Attorney General (CA AG)

This guide is intended to give you an introductory understanding of California AB 488. We recommend consulting your legal or compliance advisors for additional guidance.

What Does This Mean for Your Organization?

With some exceptions (discussed below), AB 488 applies to any 501(c)(3) organization that solicits and collects donations from California residents.

Depending on your organization’s standing status and California donor activity, the impact varies:

Exempt or In Good Standing
- If your organization is classified as Exempt or In Good Standing, you may continue receiving all donations, including those from California donors. No disruption is expected.
Not in Good Standing
- Effective early 2026, your ability to solicit and collect donations originating from California residents will be declined until your standing is restored.
- Your ability to receive non-donations from California is unaffected.
- Your ability to receive donations and non-donations from other states is unaffected.
- The law applies to all donations from California residents, even if the organization is registered outside of California.

Definitions of Standings

Exempt are organizations that are not under the purview of scope for AB 488. This includes:
- Non-charities that are not a 501(c)(3)
- Religious organizations (churches, synagogues, mosques, etc.)
- Government entities (United States, states, governmental subdivisions, etc.)
- Educational institutions
- For-profit organizations
- Charities exempt from California Attorney General registration (small orgs below thresholds, certain auxiliaries)
In Good Standing are organizations actively registered and in good standing with all three agencies (Internal Revenue Service, California Franchise Tax Board, and California Attorney General) and is not in a Revoked, Suspended or Delinquent state with any of these agencies.
Not in Good Standing are organizations that fail to register with any of the three agencies (Internal Revenue Service (IRS), California Franchise Tax Board (FTB), and California Attorney General (CA AG)) when required to do so, or having registered, are in one of the states defined below:
- IRS: Revoked, Pending Revocation, or Not found
- FTB: Suspended or Forfeited
- CA AG: Delinquent, Suspended, Revoked, Not Registered, or May not Operate

Good Standing Requirements under AB 488

Nonprofit and charitable organizations that receive donations online from California donors must be in Good Standing with all three regulatory agencies identified above.

You can verify your status by checking the following government databases:

Internal Revenue Service (IRS): Exempt Organization Search Tool
California Franchise Tax Board (FTB): Entity Search Tool
California Attorney General (CA AG): Registry Search Tool

How to Remain in Good Standing under AB 488.

If revoked or delinquent, follow the correction steps listed below

Step 1: Register with the IRS

Check your status: Search for your organization in the IRS Tax Exempt Organization Search.
If not listed: Apply for exemption by filing:
- Form 1023 (standard application), or
- Form 1023-EZ (simplified application, if you qualify).

3. Save your IRS determination letter once you receive it — you’ll need it for the next steps.

Step 2: Register with the California Franchise Tax Board (FTB)

Confirm state status: Review your exemption using the FTB Charities & Nonprofits Resources.
If not registered:
- File Form 3500 (Exemption Application) to apply for state tax exemption.
- If you already have an IRS determination letter, you may use the shorter Form 3500A.

Step 3: Register with the California Attorney General’s Registry of Charitable Trusts

If never registered: File Form CT-1 (Initial Registration) with the CA AG’s office.
Include your IRS letter and organizing documents.
After initial registration: File annual renewals using Form RRF-1 (and CT-TR-1, if required).

If You Are Revoked or Delinquent

If your organization was previously registered but is now revoked, suspended, or delinquent:

IRS: Follow the IRS Reinstatement Procedures to regain tax-exempt status.
FTB: Reapply for state exemption using Form 3500 if your state status was revoked.
Attorney General: File missing renewal forms (RRF-1, CT-TR-1) and pay any overdue fees. See AG Renewal Resources.

Upcoming Product Compliance Upgrade

To support compliance, product updates will be released by December 31, 2025 that manage donations from California residents according to each organization’s verified standing. The product updates will include:

Updated validation rules for California-origin donations
Enhancements enabling enforcement based on an organization’s standing status
System improvements for ongoing compliance monitoring

If you are unsure of your current standing, please contact or refer to the state agency website for verification. https://rct.doj.ca.gov/verification/web/

If you require additional assistance, please reach out to your product support team.

FAQs

What is California AB 488?

AB 488 is a California law that regulates online charitable fundraising platforms and charities that receive donations through those platforms. It ensures transparency, timely fund distribution, and that donations go only to organizations in good standing with the State.

Does AB 488 apply to my nonprofit if we are not based in California?

Yes, it does. AB 488 applies to any nonprofit organization that solicits and receives donations through an online platform from California-based donors, regardless of where the nonprofit is physically located.

What does “in good standing” mean?

A nonprofit is considered “in good standing” when:

It is registered and current with the California Attorney General’s Registry of Charities & Fundraisers.
That the nonprofit’s exempt status has not been revoked by CA Franchise Tax Board (FTB).
It is recognized as tax-exempt and not revoked by IRS.

Platforms can only distribute funds to charities that meet these criteria.

How does AB 488 affect my organization?

If your organization receives online donations from California residents through a third-party platform such as ours, we must verify that you are in good standing before donations can be processed.

If your organization is based outside California but receives donations from California residents online, AB 488 still applies to the platforms that handle those transactions.

Do religious, educational, or government organizations need to register?

Certain entities—such as religious organizations, educational institutions, and government agencies—may be exempt from the Attorney General’s registration requirement. However, platforms still need to verify their exemption status before listing them as eligible charities.

What happens if my charity isn’t in good standing?

If your charity becomes not in good standing, platforms must stop soliciting and collecting donations to your organization until your status is restored. This can temporarily interrupt online fundraising.

How can I check if my charity is in good standing?

You can check the status at the California Attorney General’s Registry of Charities & Fundraisers website: rct.doj.ca.gov/Verification

Additionally, you can proactively check your status on the following official websites:

California Attorney General's May Not Operate List
California FTB's Revoked Exempt Organizations list
IRS Tax Exempt Organization Search

How did you determine my organization’s standing status?

We reviewed publicly available data from regulatory agencies and cross-validated it with internal transaction data. If you believe there is an error, please contact your product support team.

What do I need to do to avoid disruption?

Restore your Good Standing with the appropriate agency - with the Attorney General, Franchise Tax Board, and Federal Internal Revenue Services.
Stay up to date with annual reporting and financial disclosure requirements to maintain good standing and continue fundraising without disruptions.

I do not have any California donors — do I need to do anything?

Yes. Please remain up to date on all product feature enhancements planned through December 31, 2025 as these will incorporate new AB 488 compliance features.

Where can I learn more?

You can read the full text on the California Legislature’s site:
AB 488 – Charitable fundraising platforms

Who can I contact if I have additional questions?

If you believe we made an error on your standing status, or need more info on upcoming product feature enhancements, please reach out to the product support team for assistance.