California
Overall Free to Give Index 2.73/10
Rank 50th
Category Score (0–10) Rank (50 states)
Overall Free to Give Index 2.73 50th
Broad Policy Environment 2.76 49th
Nonprofit Freedom 4.57 36th
Donor Confidence 0.88 50th

Highlights

  • Very weak mandates and protections: California ranks 50th in Donor Confidence, providing no donor standing, no general sales tax exemption, and only very weak UPMIFA safeguards for charitable assets.
  • Poor broad policy environment: California ranks 49th in the Broad Policy Environment, driven by relatively restrictive occupational licensing rules, weak tax competitiveness, and limited economic freedom.
  • Heavy registration and reporting burdens: Charities must register to solicit, comply with extensive annual reporting requirements, undergo annual audits, and pay some of the highest fees in the country, including a $1,200 top annual reporting fee and a $500 paid solicitation fee.

Detailed Scorecard

1. Broad Policy Environment

1A. Occupational Freedom (rescaled 0 to 10) 2.83
1B. Tax Competitiveness (rescaled 0 to 10) 0.65
1C. EFNA (0 to 10) 4.79

2. Nonprofit Freedom

2A. Charitable Startup Regulations

Requires charitable registration? Yes
Top Registration Fee $50.00
Minimum Registration Fee $50.00
Top Incorporation Fee $30.00
Minimum Incorporation Fee $30.00

2B. Charitable Reporting Regulations

Requires Annual Report? Yes
Top Annual Fee $1,200.00
Minimum Annual Fee $25.00
Requires Additional Corporate Filings Periodic
Other Fees $0.00
Tiered Fee Structure Yes
Overlapping Regulators No

2C. Paid Solicitor Requirements

Commercial Fundraisers Must Register with the State Yes
Paid Solicitor Registration Fee $500.00
Paid Solicitor Renewal Fee $500.00
Surety Bond for Professional Fundraisers $25,000.00
Must Paid Solicitors Required to Report to the State in Order to Start Fundraising? Yes
Fundraising Consultant Registration Required Yes
Annual Financial Reporting by Commercial Fundraisers Required Yes
Must File Contracts Between Charities and Commercial Fundraisers Contracts required but not filed with state
Individual solicitors employed by professional fundraisers must register separately? No

2D. General Audit threshold (revenue)

General Audit threshold (revenue) $2,000,000.00

3. Donor Confidence

3A. State has Never Introduced Disclosure No
3B. State has Privacy Law No
3C. State gives Donors Standing No
3D. State has UPMIFA Protections Yes (very weak)
3E. Donations are Generally Deductible Limited
3F. General Sales Tax Exemption No
3G. State has Never Proposed DAF Restrictions No
3H. New Regulations Require Legislative Approval No