May 29, 2025
Hawaii’s SB 1048 Enhances Oversight for Nonprofit Fundraising
Hawaii’s Senate Bill 1048, which goes into effect July 1, 2026, introduces new regulations overseen by the Department of the Attorney General that, while not directly enacting changes for charities, could impact those fundraising via platforms. Charities relying on these platforms may face indirect effects from the additional regulations, such as increased costs or delays, though the extended timeline allows for preparation.
Signed into law on May 29, 2025, as Act 108, Senate Bill 1048 amends Hawaii’s charitable solicitation laws to regulate online fundraising platforms and platform charities. Platforms must register with the Department of the Attorney General, file annual financial reports, obtain written consent from charities before soliciting, and disburse donations within 30 days to organizations in good standing. Nonprofits must maintain compliance with state registration to receive funds. Political organizations are exempt.
Read the details of Senate Bill 1048
Key Provisions of SB 1048
Regulation of Fundraising Platforms:
- Online platforms (e.g., crowdfunding sites, donation portals) must register with the Hawaii Department of the Attorney General, submit annual financial reports, and obtain written consent from charities before soliciting on their behalf.
Donation Disbursement:
- Platforms must disburse funds to charities within 30 days, ensuring recipients are in good standing with the state (i.e., registered and compliant with Hawaii’s charitable solicitation laws under HRS § 467B).
Exclusions:
- Political organizations and fundraising for political purposes are explicitly exempt from these requirements.
Nonprofit Compliance:
- Charities must maintain active registration with the Attorney General’s Charitable Organizations Registry to receive funds from platforms, including filing annual reports (e.g., Form 990 or equivalent) and paying registration fees.
Impact on Nonprofits:
- Nonprofits must ensure compliance with the Hawaii Department of the Attorney General’s registration and reporting requirements to be eligible for funds raised through online platforms.
- Failure to maintain good standing may result in delayed or blocked disbursements from platforms.
- Nonprofits should verify platform compliance (e.g., registration, consent) to protect their brand and donor trust.