California Considers Heightened Disclosures by Fundraisers

The Chronicle of Philanthropy reports that proposed legislation in California would impose greater disclosure requirements on charity fundraisers. Explains the article:

California law requires “commercial fundraisers” to include a disclosure in charity solicitations whenever a portion of a donor’s charitable contributions will go to a for-profit company. However, some fundraisers have skirted that requirement by establishing their operations as “fundraising counsel” instead of “commercial fundraiser.”

According to the story, the bill, sponsored by California Assembly member Jacqui Irwin and supported by California Attorney General Kamala Harris, would impose the transparency requirement on “all for-profit companies involved in fundraising for charities,” and would also lengthen to 10 years the statute of limitations applicable to particular offenses relating to “the exploitation of charitable assets.”  The article states that a recent attorney general’s report has found that “an average of 54.6 percent of funds raised through campaigns conducted by commercial fundraisers in the state in 2013 went to the charities.”

JRB