Do Charitable Sales Promotions Require a Charitable Registration Filing?

California recently updated its state laws and regulations governing online charitable fundraising platforms under Ca. Gov. Code §12599.9. As a result, companies conducting cause-related marketing programs or charitable sales promotions (CSPs) must register with the state.

Understanding CSPs and Commercial Coventurers

CSPs are advertising or sales campaigns conducted by a commercial coventurer (CCV). In these campaigns, the purchase or use of the goods or services offered by the CCV benefits a charitable organization or purpose. A CCV is a person or company that is regularly and primarily engaged in trade or commerce other than raising funds or other things of value for a charitable organization and represents to the public that its goods or services will benefit a charitable organization or purpose.

Registration Requirements for CSPs and CCVs Under California Law

Based on California’s laws and regulations, a charity must register charitable sales promotions with the state as a form of charitable solicitation. This requirement is similar to those in most other states where promotions take place.

However, unlike most other states, in California, not only must the charity register the CSP, but the CCV may also have certain duties. More specifically, under §12599.9(2)(E), if a CCV conducts online promotions that benefit more than six charities in a calendar year, it must register and comply with certain disclosure and other requirements. On the other hand, if the CCV conducts online promotions that benefit less than six charities in a calendar year, or only conducts in-store promotions, then registration of the CCV is not required if:

• The CCV has a written contract with the benefiting charity or charities;
• The CCV delivers promised funds to the charity or charities every 90 days;
• The CCV includes a written accounting with each payment to confirm accurate calculation of the amount; and
• Each beneficiary charity is properly registered to fundraise in California.

Another unique feature of California’s registration requirements is that online “donation-at-checkout” or “round-up” programs now count toward the maximum six charities that a CCV’s online programs can benefit without triggering registration. Historically, CCVs have not registered these programs, despite Ca. Gov. Code §12582(b), which requires companies operating such programs to register as charitable “trustees.” It is unclear whether California will now take steps to enforce registration requirements if triggered by CCVs operating this particular type of program.

Required Disclosures

CCVs subject to California’s registration requirements must comply with certain disclosure requirements, as well. For example, those CCVs must provide:

A statement that a recipient charitable organization may not receive donations or grants or recommended donations, with an explanation identifying the most pertinent reasons under which a recipient charitable organization may not receive the funds. This disclosure is not required when there are no circumstances under which a recipient charitable organization may not receive the funds. The explanation may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.

Similarly, CCVs “shall disclose the length of time it takes to send donated funds to a recipient charitable organization, subject to any minimum threshold amount as permitted by §12599.10(a)(4)(A)(ii).” In other words, CCVs must disclose:

The maximum length of time it takes to send the donation or a grant of the recommended donation to a recipient charitable organization, with an explanation as to the length of time, unless the donation is sent contemporaneously to a recipient charitable organization after the donation is made. The explanation as to the maximum length of time may be provided through a conspicuous hyperlink, so long as the disclosure is conspicuous when the hyperlink is selected.

Finally, CCVs subject to registration must disclose certain information regarding donations sent to a charitable organization. The CCV may provide the information along with the donated funds or through a secure platform that authenticates the charity, as long as the charity is aware of the platform and not charged for access to it. The information disclosed must include:

• A description of the purchasing or other activity performed that led to the charitable donation, along with the time period during which it occurred; and
• The amount of each donation, with an accounting of how it was calculated, including the number of purchases made or other activities performed, the donation amount per purchase or other activity, and any fees.

Frequently Asked Questions (FAQ)

How do the new rules affect companies that want to partner with charities for short‑term or seasonal promotions?

Short‑term campaigns are still allowed, but companies must now pay closer attention to how many charities their online promotions benefit in a calendar year. If a business runs multiple online campaigns that collectively support more than six charities, it may trigger registration and disclosure obligations. Even for smaller or seasonal efforts, companies should ensure they have written agreements in place and follow required payment and accounting practices to avoid compliance issues.

What should charities consider before agreeing to participate in a cause‑related marketing campaign?

Charities should confirm that the company understands its obligations under California law, especially if the promotion will be offered online. This process includes verifying that the business can meet payment timelines, provide accurate accounting, and comply with any required disclosures. Charities should also ensure their own fundraising registration is up to date, as their compliance status affects whether a CCV can operate without registering.

How do these updates impact companies using third‑party platforms or checkout‑based donation tools?

Businesses that rely on digital checkout prompts, round‑up features, or other automated giving tools must now treat these programs as part of their overall online charitable promotions. Because these contributions count toward the six‑charity threshold, companies using multiple platforms or tools may unintentionally trigger registration. Reviewing platform agreements and tracking how many charities benefit from each tool can help companies stay ahead of compliance requirements.

Keep Your Organization Resilient and Compliant

California’s regulatory environment for charitable organizations is constantly evolving, and staying aligned with those requirements is essential to protecting your mission and maintaining public trust. You don’t have to manage these complexities on your own. The California Center for Nonprofit Law offers clear, reliable guidance to help your organization move forward with confidence. For experienced support, call (949) 892‑1221, email info@NPOlawyers.com, or connect with us online to ensure your mission remains strong and well‑protected.