Ever wonder what will happen if you don’t comply with the California Attorney General‘s rules on charitable solicitation? Stay up at night wondering whether you’re going to be carted off to jail for failing to register? Hopefully you didn’t spend too much time getting to know the current rules, because the AG is thinking about making some changes.
Currently, any person who violates the Supervision of Trustees and Fundraisers for Charitable Purposes Act with “intent to deceive or defraud any charity or individual” is liable for civil penalties not to exceed $10,000.
But the AG recently drafted a proposed modification to the law. The proposal allows the AG the right to issue a cease and desist order whenever it finds that an entity has violated the rules – no intent to deceive or defraud is necessary. The AG can also still impose penalties, but the good news is the new maximum is $1,000 (although the violating entity would be automatically suspended until the fines are paid).
And no, you’re not going to jail for violating these rules.
Organizations throughout California are gathering feedback to provide input to the Attorney General on these changes. Followers of this blog will be kept apprised of the progress of the proposed modifications.
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