Summary: California's AB 488 law requires fundraising platforms like Rally Corp, Inc (Rally) to verify that your organization is in good standing. This article explains what good standing means, what happens if your organization is flagged as delinquent, and the simple steps to get back in good standing.
When this applies: This only applies when Rally is processing your payments, either through our Stripe Connect integration or on one of our Fundraise.so Giving Apps. If Rally is not processing your donations, this good standing requirement does not affect your account with us.
About California AB 488
AB 488 is a California law that protects donors who give through online fundraising platforms. It asks platforms like Rally to confirm that the nonprofits using our platform are registered and in good standing with the state.
For most organizations, this is nothing to worry about. As long as your registrations and filings are current, you are in good standing, and nothing changes. This article is here for the less common case: what happens if your organization falls out of good standing, and how to fix it.
What "not in good standing" means
Your organization is not in good standing when California or the IRS has affirmatively flagged it: the Attorney General has prohibited it from soliciting, or the IRS or Franchise Tax Board has revoked its tax-exempt status. The most common path there is falling behind on a required annual filing or renewal, which, left unresolved, can lead to that flag.
Specifically, your organization is flagged if it appears on any of these official lists:
The California Attorney General's "May Not Operate or Solicit for Charitable Purposes" list.
The California Franchise Tax Board's "Revoked exempt organizations" list.
The good news is that this is almost always a paperwork gap, not a judgment about your mission, and it can be fixed.
How it affects you on Rally
If your organization is flagged as delinquent or not in good standing, California's rules do not allow it to use a fundraising platform until it is back in good standing. In practice, that means we would need to pause your fundraising on Rally until your status is resolved.
Here is the important difference with Rally: we do not hold your money. Your donations are processed directly to your organization through Stripe Connect or one of our Fundraise.so Giving Apps, so funds that have already been given are yours.
What pauses is your fundraising on Rally while the flag is in place, not access to money your supporters have already given.
How to get back into good standing
Getting back into good standing is usually straightforward. Here is the path:
Find out why you were flagged. Look up your organization in the California Attorney General's Registry Search and check the IRS and FTB lists above. This tells you which filing or registration is missing.
File the missing paperwork. Most flags come down to an overdue annual filing. For California that is typically your Annual Registration Renewal (Form RRF-1), along with either IRS Form 990 or, for smaller organizations under $50,000 in revenue, California Form CT-TR-1. You can find these on the California Attorney General's forms page.
Confirm your IRS and FTB status. Make sure your federal 501(c)(3) is active on the IRS Tax Exempt Organization Search, and that your California exemption is current with the Franchise Tax Board.
Work with the Delinquency Program if you need help. The California Attorney General runs a Delinquency Program that can tell you exactly what is outstanding and how to resolve it.
Once the state processes your filings, your status updates and you are back in good standing. From there, you are clear to fundraise with your California supporters again.
Frequently asked questions
How long does it take to get back in good standing?
Once you submit the missing filings, the state typically updates your status within 30 to 90 days. Filing promptly is the best way to shorten that window.
What is the difference between delinquent, suspended, and revoked?
Delinquent usually means an overdue filing. Suspended and revoked are more serious and often follow a long period of delinquency. All three can count as not in good standing for AB 488, and all three can be resolved by bringing your filings current and, in the case of revocation, applying for reinstatement.
Do I need to worry about this if my nonprofit is registered outside California?
Possibly. AB 488 applies based on where your donors are. If you fundraise to California supporters through Rally, you may need to be registered and in good standing with California, even if your organization is registered in another state. Consult with your legal team.
Does Rally hold my donations while this is being resolved?
No. Donations are processed directly to you through Stripe Connect or a Fundraise.so Giving App, so your funds are not held by Rally. However, Rally will pause your fundraising functions until your good standing is restored.
Official resources
These are the official government pages you can use to check your status and file:
California Attorney General, Registry of Charitable Trusts (look up your registration and status)