So You Think You Want to Operate a Charity in California?

Subject to a limited set of exceptions, operating a charity in California that solicits and receives charitable contributions from California residents comes with a litany of somewhat onerous legal hurdles. The operation of charities in California is principally governed by two separate sets of laws: (1) the Supervision of Trustees for Charitable Purposes Act (the “Charitable Trusts Code”) and (2) Article 1.3 of the General Business Regulations of the Business and Professions Code (the “Charitable Solicitations Code”). The Charitable Solicitations Code primarily governs the receipt of charitable property as well as reporting and filing requirements for charities and charitable solicitations, while the Charitable Trusts Code provides additional oversight specifically over charitable solicitations.

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