12599.9.
(a) For purposes of this section:(1) “Charitable fundraising platform” means any person, corporation, unincorporated association or other legal entity that uses the internet to provide an internet website, service, or other platform to persons in this state, and performs, permits, or otherwise enables acts of solicitation to occur, which includes, but is not limited to, any of the following:
(A) Lists one or more recipient charitable organizations to receive donations or grants of recommended donations made by donors who use the platform.
(B) Permits persons who use the platform to solicit donations for or
recommend donations to be granted to one or more recipient charitable organizations through peer-to-peer charitable fundraising.
(C) Permits persons who use the platform to select one or more recipient charitable organizations to receive donations or grants of recommended donations made by a platform, platform charity, or other third party person, based on purchases made or other activity performed by persons who use the platform.
(D) Lists one or more recipient charitable organizations to receive donations or grants of recommended donations made by the platform based on purchases made or other activity performed by persons who use the platform.
(E) Provides to charitable organizations a customizable internet-based website, service, or other platform that allows charitable organizations to solicit or receive
donations on or through the platform, including through peer-to-peer charitable fundraising. The customizable platform provided by the charitable fundraising platform does not include the charitable organization’s own platform, but may integrate with the organization’s platform.
(2) “Charitable fundraising platform” does not include a charitable organization’s own platform that solicits donations only for itself.
(3) “Good standing” means that a recipient or other charitable organization’s tax-exempt status has not been revoked by the Internal Revenue Service, or the Franchise Tax Board when applicable, and the organization is registered and in compliance with the reporting requirements of the Attorney General’s Registry of Charitable Trusts when applicable.
(4) “Peer-to-peer charitable fundraising” means a
solicitation campaign created by a person to support a recipient charitable organization, through or with other assistance provided by a charitable fundraising platform or platform charity.
(5) “Platform charity” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1 that facilitates acts of solicitation on a charitable fundraising platform, which includes, but is not limited to, either of the following:
(A) Solicits donations through a charitable fundraising platform for itself from donors who use the platform with the implied or express representation that the platform charity may grant donations to recipient charitable organizations.
(B) Grants funds to recipient charitable organizations based on purchases made or other activity performed by persons who use a
charitable fundraising platform.
(6) “Recipient charitable organization” means a trustee as defined in Section 12582 or a charitable corporation as defined in Section 12582.1, that is listed or referenced by name on a charitable fundraising platform or by a platform charity for solicitation purposes.
(b) (1) A charitable fundraising platform is a trustee for charitable purposes subject to the Attorney General’s supervision. A charitable fundraising platform or platform charity shall, before soliciting, permitting, or otherwise enabling solicitations, register with the Attorney General’s Registry of Charitable Trusts, under oath, on a form provided by the Attorney General. Persons or entities that meet the definition of a charitable fundraising platform and platform charity shall register as both.
(2) Registration shall be renewed each year. The Attorney General shall impose a registration and renewal fee, which shall be deposited and used in accordance with Section 12587.1.
(c) A charitable fundraising platform or platform charity shall file annual reports, under oath, with the Attorney General’s Registry of Charitable Trusts on a form provided by the Attorney General.
(d) A charitable fundraising platform or platform charity shall only solicit, permit or otherwise enable solicitations, or receive, control or distribute funds from donations for recipient or other charitable organizations in good standing.
(e) A charitable fundraising platform or platform charity that also operates as a charitable fundraising platform that performs, permits, or otherwise enables acts of solicitation described by
subparagraph (A), (B), or (C), of paragraph (1) of subdivision (a) shall, before a person can complete a donation or select or change a recipient charitable organization, provide conspicuous disclosures that prevent a likelihood of deception, confusion, or misunderstanding, including, but not limited to, the following:
(1) A statement that donations are made to the platform charity, when applicable, otherwise a statement that donations are made to the recipient charitable organization. If donations are not made to the platform charity or the recipient charitable organization, then a statement that donations are made to the charitable fundraising platform.
(2) The circumstances, if any, under which a recipient charitable organization may not receive the donation or a grant of the recommended donation.
(3) The length
of time it takes to send the donation or a grant of the recommended donation to a recipient charitable organization with an explanation as to the length of time.
(4) The fees, if any, deducted from or added to the donation or a grant of the recommended donation that are charged by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees.
(5) Whether the donation is tax deductible or not. This disclosure is not required for acts of solicitation described by subparagraph (C) of paragraph (1) of subdivision (a).
(6) The disclosures required by this subdivision may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.
(f) (1) A charitable fundraising platform or platform charity that solicits, permits, or otherwise enables solicitations shall obtain the written consent of a recipient charitable organization before using its name in a solicitation. Written consent shall be provided directly to the charitable fundraising platform or platform charity, on behalf of the platform or platform charity and any partnering charitable fundraising platforms expressly identified in an agreement providing consent, by one authorized officer, director, or trustee of the recipient charitable organization.
(2) Written consent pursuant to paragraph (1) shall not be required for acts of solicitation described in subparagraphs (A), (B), or (C), of paragraph (1) of subdivision (a) if, in addition to all provisions of this section and rules or regulations established under subdivision (j) of this section, all of the following are met:
(A) The charitable fundraising platform or platform charity only lists the recipient charitable organization’s name, address information, employer identification number, or registration number with the Attorney General’s Registry of Charitable Trusts.
(B) The charitable fundraising platform or platform charity that also operates as a charitable fundraising platform conspicuously discloses before persons can complete a donation, or select or change a recipient charitable organization, that the recipient charitable organization has not provided consent, has no association with the charitable fundraising platform, platform charity, or persons using the platform for solicitation purposes when applicable, and has not reviewed or approved any peer-to-peer charitable fundraising content generated by such persons when applicable.
(C) No fees are deducted from the donation or a grant of the recommended donation that are charged by the charitable fundraising platform, platform charity, or any other partnering vendor, other than digital payment processing fees.
(D) The charitable fundraising platform or platform charity shall remove any recipient charitable organization from its list or any solicitation regarding the recipient charitable organization within 72 hours of a written request by the recipient charitable organization.
(E) The charitable fundraising platform or platform charity shall not require that a recipient charitable organization consent to any solicitations as a condition for accepting a donation or grant of a recommended donation.
(g) After donors contribute donations based on solicitations described by subparagraph
(A) or (B) of paragraph (1) of subdivision (a), the charitable fundraising platform or platform charity shall promptly provide a tax donation receipt in accordance with Sections 17510.3 and 17510.4 of the Business and Professions Code.
(h) The charitable fundraising platform or platform charity shall not divert or otherwise misuse the donations received through solicitation on the platform, and shall hold them in a separate bank account from other funds belonging to the fundraising platform or platform charity. The charitable fundraising platform or platform charity shall promptly ensure donations and grants of recommended donations are sent to recipient charitable organizations with an accounting of any fees imposed for processing the funds, and in accordance with any rules and regulations established under subdivision (j).
(i) When a charitable fundraising platform or platform
charity contracts with other vendors to solicit, receive, control, process, distribute, and otherwise account for donations on the platform, the contracts shall be available for inspection by the Attorney General.
(j) The Attorney General shall establish rules and regulations necessary for the administration of this section, which shall include, but are not limited to, all of the following:
(1) The content of the form and other information to be provided by a charitable fundraising platform or platform charity for registration with the Attorney General’s Registry of Charitable Trusts, including all of the following:
(A) The manner and timing of the filing of registration.
(B) The circumstances when additional registration as a commercial fundraiser for
charitable purposes, a fundraising counsel for charitable purposes, or a commercial coventurer may be unnecessary.
(C) The payment of fees to cover the reasonable costs to administer and enforce this section.
(2) The content of the form and other information to be provided by a charitable fundraising platform or platform charity in annual reports filed with the Attorney General’s Registry of Charitable Trusts, including all of the following:
(A) The manner and timing of the filing of the reports.
(B) The circumstances under which partnering charitable fundraising platforms or platform charities may submit an annual report on behalf of other platforms, if any.
(C) The payment of fees to
cover the reasonable costs to administer and enforce this section.
(3) The requirements for any written agreement between a recipient charitable organization and a charitable fundraising platform or a platform charity that provides consent for or otherwise applies to solicitations for donations.
(4) The requirements for holding donations or distributing donations and grants of recommended donations, including all of the following:
(A) The length of time it takes to send the donated funds.
(B) The circumstances under which donors or persons may be contacted to provide alternate recipient charitable organizations or notified when the donated funds are sent.
(C) The circumstances when donor
or personal information may be provided to recipient charitable organizations.