Are there any special reporting requirements for donors to a nonprofit organization?

Yes, there are some special reporting requirements for donors to a nonprofit organization in California. According to the California Nonprofit Corporation Law, any donor who contributes more than $5,000 to a nonprofit organization must receive a written acknowledgment from the organization for tax purposes. This acknowledgment must include the organization’s name and address, the amount of the donation, and a statement that no goods or services were received in exchange for the donation. In addition, California Assembly Bill 1445 requires any 501(c)(3) nonprofit organization that receives more than $25,000 in a calendar year from any single donor to file a special disclosure report with the Secretary of State. This report includes the name and address of the donor, the amount of the donation, and the value of any goods or services received in exchange for the donation. Organizations must file this report within 60 days of receiving the donation. Organizations also have an obligation to disclose any financial transaction with a board member to the Attorney General. This disclosure must include the name of the board member, the date of the transaction, the amount of the transaction, and the purpose of the transaction. These reporting requirements are in place to ensure that donor funds are used for the charitable purposes for which they are intended.

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