SACRAMENTO – Governor Gavin Newsom signed Senate Bill 1288 by Senator John Laird, legislation to ensure gifts left to beneficiaries, including nonprofits, are delivered efficiently and without unnecessary barriers.

“When someone makes the decision to leave assets to a nonprofit or another beneficiary, they should be able to trust that their wishes will be carried out,” said Laird. “SB 1288 removes unnecessary barriers and creates a clearer process to make sure those assets reach the people and organizations they were intended for. I’m grateful to the Governor for signing this measure into law.”

SB 1288 addresses longstanding gaps in how financial institutions distribute beneficiary funds after an account holder’s death – gaps that too often prevent nonprofits from receiving gifts intended to support their missions.

Currently, state law lacks a clear process for financial institutions to notify beneficiaries when an account holder dies. As a result, nonprofits and other beneficiaries may never learn they were named, and funds that go unclaimed for three years are transferred to the state. Even when beneficiaries are aware of assets left to them, they can face administrative barriers and inconsistent requirements that delay access to those funds.

SB 1288 establishes a clearer and more consistent process for distributing beneficiary funds. The new law requires financial institutions that receive proof of an account holder’s death to notify beneficiaries within 60 days, prohibits institutions from requiring beneficiaries to open accounts to receive funds, allows individual beneficiaries to receive their share without waiting for other beneficiaries to submit documentation, and standardizes the documentation nonprofits must provide to establish their legal identity and access funds.

SB 1288 is sponsored by CalNonprofits, San Diego Humane Society, and Valley Humane Society.

“SB 1288 is a major win for all California nonprofits because it ensures donor intent is respected and community impact is prioritized,” said Geoff Green, CEO of CalNonprofits. “By removing unnecessary delays and ensuring gifts are transferred in good faith, this bill protects the vital funding our communities rely on. We deeply appreciate Senator Laird’s leadership in championing this commonsense protection for our sector and the people we serve.”

“Governor Newsom’s signature on SB 1288 brings much-needed clarity and common sense to California’s charitable giving laws,” said Dr. Gary Weitzman, president and CEO of San Diego Humane Society. “Nonprofits should not have to navigate unnecessary obstacles simply to receive a gift that was lawfully and intentionally left to them. This new law creates a clearer, more workable process so charitable organizations can put those resources to work fulfilling their missions. We are grateful to Senator Laird, Governor Newsom, and the many nonprofit partners who helped turn a practical problem into a meaningful statewide solution.”

“This is an exciting day for charitable giving in California,” said Melanie Sadek, president and CEO of Valley Humane Society. “When someone chooses to leave a legacy to an organization they love, they deserve to know that gift will reach the people, animals, and communities they intended to help. SB 1288 turns a frustrating experience we faced at Valley Humane Society into lasting change that will benefit nonprofits throughout California. We are incredibly grateful to Senator Laird for championing this issue and helping ensure that a donor’s final act of generosity is honored.”

SB 1288 will take effect January 1, 2027.