In 2025, California will usher in new expectations about transparency and accountability in charitable fundraising with the implementation of Assembly Bill 488 (AB 488).
This groundbreaking law, spearheaded by California's Attorney General, will regulate charitable fundraising platforms for the first time, ensuring that donors, charities & companies alike can trust the systems they use to support good causes. For nonprofits and fundraisers, this represents a major shift - and Pledge is here to help you navigate it.
🔍 What Is AB 488?
AB 488 was signed into law to address the rapid growth of online fundraising and the increasing complexity of how donations are solicited, processed, and distributed. Under the new law, charitable fundraising platforms and platform charities - organizations that process donations on behalf of other charities - will need to register and comply with specific requirements aimed at:
- Improving Transparency: Clearly disclosing how funds are collected, distributed, and used.
- Strengthening Accountability: Ensuring that donations reach their intended recipients in a timely manner.
- Enhancing Donor Trust: Providing greater clarity around fees, terms, and how donor information is handled.
By establishing these guidelines, California is setting a higher standard for fundraising platforms nationwide.
🏆 How Pledge Is Already Compliant
At Pledge, trust is one of our core values and transparency has always been at the core of what we do. As a leading fundraising platform, we’ve long anticipated the need for stronger regulations and have proactively built our processes to exceed these standards. Here’s how Pledge is fully compliant with AB 488 - making us your most reliable fundraising partner:
- ✅ Full Transparency:
- Pledge provides clear, upfront disclosures about any applicable fees, ensuring that donors know exactly where their money is going.
- We’ve built detailed reporting tools that allow nonprofits to track every dollar raised and disbursed.
- ✅ Efficient Fund Distribution:
- Donations made through Pledge are promptly processed and directed to the intended nonprofit organizations through our donor-advised fund, The Pledgeling Foundation. Our streamlined system ensures minimal delays, keeping donor trust intact.
- ✅ Secure and Ethical Data Practices:
- We adhere to strict data protection standards, safeguarding donor information and never using it for purposes unrelated to their charitable contributions.
- ✅ Compliance Infrastructure:
- Pledge is registered as a charitable fundraising platform and works in partnership with vetted platform charities to meet all state and federal regulations.
You can learn more here on our Trusty & Safety page.
👀 Why This Matters to You
For nonprofits and fundraisers, AB 488 ensures a level playing field and reinforces donor confidence. Partnering with a compliant platform like Pledge means you can focus on your mission without worrying about regulatory hurdles. For donors, the law provides peace of mind that their contributions will be handled ethically and reach the intended cause.
🏁 Moving Forward Together
As AB 488 goes into effect, Pledge remains committed to leading the charge in ethical, transparent fundraising. Our platform not only complies with the new law but also sets the bar for innovation and integrity in the philanthropic sector. By choosing Pledge, you’re aligning with a trusted partner that prioritizes your success and the trust of your supporters.
Together, we can embrace these changes and continue making a difference - one donation at a time.
Ready to supercharge your fundraising efforts in 2025? Start fundraising today to maximize your impact in the new year!