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New California Regulation Poses Threat to Nonprofits Not Properly Registered

By January 19, 2018 No Comments

Effective as of January 1, 2016, new regulations related to administrative enforcement of violations of the Supervision of Trustees and Fundraisers for Charitable Purposes Act go into effect.

Now that regulations have become law, all nonprofits operating and/or raising charitable funds in California must be prepared to comply and stay in compliance with the registration requirements. Failure to comply can result in suspension or revocation of a nonprofit’s registration status, and operating while suspended or revoked can potentially result in dire consequences, including, in worst case scenarios, personal liability of board members and forced distribution of the nonprofit’s assets to another nonprofit.