Bill
AB 576
California AB 576 lets online fundraising platforms use an AG‑specified API to verify recipient charities’ good standing, expanding beyond electronic lists.
Status and timeline
- Introduced: February 12, 2025 (Asm. Irwin).
- Last action: In committee — Held under submission (Assembly Appropriations, 05/23/2025).
- Current classification: bill (amends Government Code §12599.9).
- Committee progress: Referred to Privacy & Consumer Protection (P. & C.P.), amended and rereferred; P. & C.P. reported “do pass” (13–0) and re-referred to Appropriations; then placed on suspense and held under submission.
Purpose / intent
- Modernize and clarify California requirements for internet-based charitable fundraising by explicitly permitting online platforms and “platform charities” to use an application programming interface (API) in addition to existing electronic lists when verifying that recipient charities are in “good standing.”
- Expresses legislative intent to address issues related to online charitable giving, platform charities, and fundraising platforms.
Key provisions (substantive changes)
- Amends Government Code §12599.9 (definitions and duties related to charitable fundraising platforms and platform charities).
- Confirms and refines definitions:
- “Charitable fundraising platform”: entities that use the internet to host, list, enable, or permit solicitations (including peer‑to‑peer fundraising, lists of recipient charities, or SaaS/customizable fundraising tools).
- “Platform charity”: an entity (trustee or charitable corporation) that solicits on a platform with an explicit or implied promise of granting funds to recipient charities or that grants funds based on platform user activity.
- “Good standing”: tax‑exempt status not revoked by IRS or Franchise Tax Board (FTB), and not prohibited from soliciting or operating in California by the Attorney General.
- New authorization: charitable fundraising platforms and platform charities may rely on an application programming interface (API) — in addition to specified electronic lists — to determine whether a recipient charitable organization is in good standing.
- Rulemaking: requires the California Attorney General to adopt rules/regulations specifying API technical and operational requirements (security, format, reliability standards, etc.).
- Retains statutory exclusions and carve-outs (e.g., a charity’s own fundraising platform that solicits only for itself; vendors providing only technical/support services; certain donor‑advised fund sponsoring organizations; rules distinguishing commercial fundraisers and commercial coventurers).
Who is affected
- Primary: internet-based charitable fundraising platforms and platform charities operating in California (both large public platforms and smaller SaaS providers).
- Secondary: recipient charitable organizations (must maintain good standing); the Attorney General’s Registry of Charities and Fundraisers (will adopt API specs and oversee compliance); donors (may benefit from faster verification).
- Vendors that only supply technical services remain generally excluded unless they themselves enable solicitation.
Potential impacts and considerations
- Operational: permits technical automation of “good standing” checks, potentially reducing manual compliance burdens and delays for platforms and charities.
- Implementation: platforms will need to adopt the AG’s API specification; costs and timelines depend on the forthcoming regulations.
- Consumer protection and security: AG rulemaking will determine safeguards (authentication, data integrity, availability) — important for preventing misuse or incorrect exclusion of charities.
- Legal/regulatory compliance: clarifies when entities are treated as platforms vs. commercial fundraisers or coventurers, preserving existing legal distinctions.
Fiscal/other notes
- Legislative Counsel digest indicates no appropriation is required by the bill as drafted. The AG will incur administrative rulemaking tasks to set API specifications (scope and costs to be determined).
Bottom line
AB 576 updates California’s supervision framework for internet-based charitable fundraising by explicitly allowing platforms and platform charities to rely on an Attorney General‑specified API to verify recipient charities’ “good standing,” while directing the AG to promulgate the API specifications and associated safeguards.
Compiled from official sources — confirm details with the bill’s official record.
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