What does it mean for my Venmo charity to be in good standing?
Being in good standing means that your charity is properly registered, up-to-date with all required filings, and not delinquent on any obligations with the IRS, FTB (Franchise Tax Board), and CA AG (California Attorney General). This status is essential for your charity to continue accepting donations through online platforms like Venmo.
How to Regain Good Standing and Re-Enable Donations on Venmo
To regain good standing, a charity must:
- Contact the Relevant Agencies: Reach out to the IRS, FTB (Franchise Tax Board), and CA AG (California Attorney General) to determine the specific issues affecting your status.
- Resolve Outstanding Issues: Address any outstanding problems with these agencies, such as filing missing reports or paying overdue fees.
Once Venmo receives notice from the regulator that your charity's good standing is restored, Venmo will re-enable your ability to receive donations. You'll receive an email from us letting you know when you can start accepting donations again. If you don't hear from us right away, feel free to contact Support for assistance.
Why does my Venmo charity need to be in good standing to receive donations?
Venmo, as an online charitable fundraising platform, is required by California Regulation AB 488 to verify that charities are in good standing with the IRS, FTB (Franchise Tax Board), and CA AG (California Attorney General) before allowing them to receive donations. If a charity loses its good standing, Venmo must suspend that charity's ability to receive donations until the issues are resolved.
What is California Regulation AB 488?
California Regulation AB 488 is a law that regulates online charitable fundraising platforms. It requires charities to be in good standing with specific governing agencies to solicit donations online. This regulation aims to enhance transparency and accountability in online charitable fundraising.
To comply with AB 488, a charity must be in good standing with the following agencies:
- Internal Revenue Service (IRS): Ensures the charity meets federal tax-exempt status requirements.
- California Franchise Tax Board (FTB): Ensures the charity complies with state tax regulations.
- California Attorney General (CA AG): Ensures the charity meets state registration and reporting requirements.