SACRAMENTO – Following his recent recognition as “Champion of the Year” by CalNonprofits, Senator John Laird (D–Santa Cruz) announced Senate Bill 1288, legislation sponsored by CalNonprofits to ensure charitable gifts left to nonprofits are delivered efficiently and without unnecessary barriers.

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.

“When someone names a nonprofit as a beneficiary, they’re expressing their values and their faith in that organization’s work,” said Laird. “We have a responsibility to honor that trust. SB 1288 sets clear standards, so those gifts reach the communities they were intended to serve – without unnecessary hurdles or delay.”

Currently, state law lacks a clear process for financial institutions to notify nonprofit beneficiaries when an account holder dies. As a result, nonprofits may never learn they were named. If funds go unclaimed for three years, they are transferred to the state.

Even when nonprofits do become aware of a gift, they often face administrative barriers to receiving the funds. Financial institutions may request personally identifying information from leadership, require multiple beneficiaries to coordinate duplicative paperwork within narrow timeframes, or even insist that a nonprofit open an account to receive beneficiary funds.

SB 1288 would:

• Require financial institutions that receive proof of death of an account holder to notify beneficiaries within 60 days;
• Prohibit financial institutions from requiring personally identifying information from leadership or requiring nonprofits to open accounts to receive funds;
• Allow beneficiaries to receive their share independently, regardless of whether other beneficiaries have submitted documentation; and
• Clarify and standardize the documentation nonprofits must provide to establish legal identity and access funds.

In addition to CalNonprofits, SB 1288 is sponsored by Valley Humane Society and San Diego Humane Society and supported by Woods Humane Society in San Luis Obispo County.

“Donors choose to support nonprofits because they trust them to make a difference in their communities. They want their gifts used for the public good, not tangled in red tape,” said Geoff Green, CEO of CalNonprofits. “CalNonprofits is proud to sponsor SB 1288 as a common-sense fix to ensure charitable gifts move out of financial institutions and into the community, exactly as donors intended.”

“Woods Humane Society is proud to support SB 1288 and is grateful for Senator Laird’s leadership on consumer protection and support of the nonprofit sector,” said Emily L’Heureux, CEO of Woods Humane Society. “This bill helps ensure charitable gifts are fulfilled as donors intend, while reducing unnecessary barriers that prevent nonprofits from accessing designated funds.”

“Valley Humane Society is proud to support SB 1288,” said Melanie Sadek, president and CEO of Valley Humane Society. “We have personally experienced the delays and obstacles this bill aims to resolve. This legislation creates a more streamlined process so charitable gifts reach the communities they were meant to help.”

“When someone names a nonprofit as a beneficiary, that gift should be honored promptly and without unnecessary obstacles,” said Dr. Gary Weitzman, president and CEO of San Diego Humane Society. “SB 1288 protects donor intent by requiring timely notification and creating clear standards, so generosity reaches the communities it was meant to serve.”

Before serving in the Legislature, Laird was executive director of the Santa Cruz AIDS Project, where he saw firsthand how critical charitable donations are to sustaining community services.

“Having led a nonprofit organization myself, I know how much every dollar matters,” Laird said. “When donors choose to give beyond their lifetime, we owe it to them – and to the communities they care about – to make sure those gifts reach their intended destination.”