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California's Assembly Bill 488: What You Need to Know
California’s Assembly Bill 488 (AB 488) is part of a larger effort to enhance transparency and accountability in online charitable fundraising. This legislation regulates charitable fundraising platforms and platform charities, such as Streamlabs Charity, to ensure donors' contributions are secure and benefiting eligible organizations. The bill, which became effective on January 1, 2023, includes several key changes to how fundraising platforms can operate:
- Platform Regulations: Fundraising platforms must verify that nonprofit organizations are in "good standing" with the California Attorney General’s Office, the IRS, and the California Franchise Tax Board. Only compliant nonprofits can raise funds through these platforms in California.
- Transparency for Donors: Platforms are required to disclose key information about the charity’s compliance status, offering donors confidence in how their contributions are managed.
- Eligibility Criteria: Noncompliant nonprofits—those overdue on annual filings or other reporting requirements—will no longer be able to use online platforms to raise funds in California.
Overall, these measures aim to reduce fraudulent or misleading fundraising activities. For users seeking further details, AB 488’s full provisions are available on the California Attorney General’s website.
Streamlabs Charity Updates for U.S. Users
In light of the changes under AB 488 and similar legislation, Streamlabs Charity has implemented updates to ensure full compliance while continuing to provide a seamless experience for our users. Here is how these new regulations impact our platform:
- Donations Limited to 501(c)(3) Organizations: U.S.-based donors can only make contributions to charities with 501(c)(3) status. This ensures that donations remain tax-deductible and align with federal and state compliance requirements.
- Fundraising for Non-501(c)(3) Charities: U.S. users can still raise awareness and collect funds for charities that are not 501(c)(3) organizations via Streamlabs Charity. However, they will not be able to contribute directly through the platform to these campaigns themselves.
These changes allow us to protect both donors and charitable organizations, maintaining a high standard of transparency and trustworthiness.
Moving Forward
Streamlabs Charity remains committed to making fundraising easy, impactful, and compliant with all legal requirements. For U.S.-based users, these adjustments reflect our dedication to supporting charities while empowering users to make informed contributions.
We highly encourage users to verify the compliance status of their chosen charities and stay updated with any ongoing changes in relevant legislation. Let’s continue to make the world a better place together!
Thank you for your continued support and understanding.