Hi everyone, You may or may not be aware of this bill potentially impacting nonprofits. If you are interested in participating in this advocacy effort, please contact your Assembly member, or the chair of the Assembly Appropriations Committee, Lorena Gonzalez <mailto:[email protected]> with your perspective. Thanks, frank From: AFP Public Affairs [mailto:[email protected]] On Behalf Of AFP Public Affairs Sent: Tuesday, May 24, 2016 6:13 AM Subject: Public Policy Alert: AFP Urges Members to Oppose California Bill 2855 Having problems viewing this e-mail? Click here <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099382&m=12935149&u=AFP NET&j=33832687&s=http://www.afpnet.org/files/email/AFPNews_2016May24.html> . <http://www.afpnet.org/files/images/email%5Fheader%20600p%5FafpnewsafplogoOn ly.jpg> Public Policy Alert: AFP Urges Members to Oppose California Bill 2855 Despite changes being made to the bill, AFP continues to oppose California Assembly Bill 2855, introduced by Assembly member Jim Frazier, which requires any solicitation document produced by a charity soliciting in the state to include the address for an Attorney General's website containing information about consumer rights and protections and charity research resources. AB 285 would also require a link from the charity's website to the Attorney General's website. AFP calls on its members in California to contact their Assembly members, along with Assembly member Lorena Gonzalez, who chairs the Assembly Appropriations Committee and urge them to oppose AB 2855. You can use the template communication below. You can find Assembly member information here <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099383&m=12935149&u=AFP NET&j=33832687&s=http://findyourrep.legislature.ca.gov/> . Background As originally written, the bill would have required disclosure of administrative and overhead expenses and a copy of the most recent Internal Revenue Service Form 990 filing on a nonprofit's webpage. The bill was amended into its current form during committee consideration. Lack of Balance AFP is supportive of demonstrably necessary laws, such as when AFP worked with the California State Legislature in the drafting of the California Nonprofit Integrity Act. But in each case, the laws and regulations that AFP has supported have been balanced with the charitable sector's need to raise funds for the critical programs it provides. Even amended, AB 2855 fails to provide that necessary balance. The bill still requires any solicitation document (essentially, ANY document that includes some sort of fundraising message) produced by a charity-ANY charity that solicits in California, regardless of where they are located-to include the address for an Attorney General's website containing information about consumer rights and protections and charity research resources. This provision also mandates that all soliciting charities revise their solicitation documents and websites. The cost to revising and reprinting these charities' materials and altering their websites is significant and will increase administrative costs. There is no proof or data indicating that there will be any positive outcomes from including references to the Attorney General's website. Misunderstanding of Administrative, Fundraising Costs Even as amended, the initial concept of the bill still concerns AFP. The bill's focus was originally on the disclosure of administrative overhead expenses. It is a misnomer that administrative costs, including fundraising costs, as well as administrative cost ratios, are indicative of a charitable organization's effectiveness. Some extremely effective and efficient organizations might periodically have higher administrative costs for a variety of reasons, including the integration of innovative fundraising approaches that might result in a strong return on investment. Similarly, organizations whose missions may be narrowly tailored and/or sometimes unpopular might have higher administrative costs compared to more conventional and mainstream charities who find it relatively easier to raise funds. Administrative costs are integral to good stewardship of funds and resources and regulatory compliance, and are equally necessary in furthering an organization's charitable mission. A wealth of information about charities currently exists. The IRS Form 990 is already available to the public, and the California Attorney General's office maintains a public Registry of Charities that provides information about whether a nonprofit is complying with state rules. What You Can Do 1) AFP urges its members in California to contact their Assembly members and urge them to oppose AB 2855. Again, you can find your Assembly member using this link <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099384&m=12935149&u=AFP NET&j=33832687&s=http://findyourrep.legislature.ca.gov/> . 2) You should also contact the chair of the Assembly Appropriations Committee, Lorena Gonzalez, as the bill is currently under consideration by that committee. You can email her office at [email protected] <mailto:[email protected]> . The template communication below can be changed and personalized for each member. Then forward this email on to your colleagues, friends and others in the nonprofit sector in California, and urge them to take action too! _____ TEMPLATE COMMUNICATION Dear Assembly member [INSERT LAST NAME]: As the [TITLE] of the [ORGANIZATION NAME] and member of the Association of Fundraising Professionals [CHAPTER NAME], I am writing to express my concerns about Assembly Bill 2855. AB 2855 would require any solicitation document produced by a charity (regardless of size) to include the address for the state Attorney General's website containing information about consumer rights and protections and charity research resources. The charity's website also would need to be revised to include a link to the Attorney General's website. The cost to revising and reprinting these charities' materials and altering their websites is significant and will increase charities' administrative costs, leading to less money spent on programs and services. I am concerned about the bill's scope and impact. Does even a five-dollar contribution trigger this requirement? What positive outcomes will result from this costly change? But most importantly, AB 2855, as originally conceived, puts a misguided emphasis on overhead and fundraising costs as some sort of indicator of a charity's effectiveness. Without sufficient investment in overhead, charities are unable to grow their donor base, increase revenue, attract and retain high level talent, and invest for their future growth. This ends up restricting the overall capacity of the charitable sector throughout California, thereby limiting potential impact and future growth. I hope that you'll recognize these concerns and oppose this bill. We look forward to working with you and offer our chapter's services on this issue and any other issues related to fundraising, giving, volunteerism, and philanthropy. Sincerely, Since 1960, AFP has inspired global change and supported efforts that generated over $1 trillion. AFP's nearly 34,000 individual and organizational members raise over $100 billion annually, equivalent to one-third of all charitable giving in North America and millions more around the world. For more information or to join the world's largest association of fundraising professionals, visit www.afpnet.org <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099385&m=12935149&u=AFP NET&j=33832687&s=http://www.afpnet.org> . If you wish to no longer receive certain communications, please visit the My AFP Profile page <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099386&m=12935149&u=AFP NET&j=33832687&s=http://www.afpnet.org/About/content.cfm?ItemNumber=3083> and select the My Communication Opt-in/Opt-out Preferences <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099387&m=12935149&u=AFP NET&j=33832687&s=http://services.afpnet.org/PersonifyEbusiness/MyAccount/Opt inOutPreferences/tabid/171/Default.aspx> link. Association of Fundraising Professionals - www.afpnet.org <http://www.mmsend63.com/link.cfm?r=2037859283&sid=97099385&m=12935149&u=AFP NET&j=33832687&s=http://www.afpnet.org> 4300 Wilson Blvd., Suite 300, Arlington, VA 22203 - US: 800-666-FUND (3863) - from Mexico: 001-866-837-1948 <http://www.mmsend63.com/spacer.cfm?tracking_id=30695732442&jid=33832687>