California Code of Regulations › Title 11 - Law › Division 1 - Attorney General › Chapter 4 - Regulations Adopted Pursuant to the Supervision of Trustees and Fundraisers for Charitable Purposes Act › Article 3 - Administrative Enforcement of the Supervision of Trustees and Fundraisers for Charitable Purposes Act › Section 339 - Grounds for Refusal, Revocation or Suspension

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The grounds for which a registration may be refused, suspended
					 or revoked include, but are not limited to:
(a) Misuse of charitable assets.
(b) False or misleading statements and/or conduct
				  in connection with a solicitation for charitable purposes, including any conduct in
				  violation of section
				  17510 et seq. of the Business and
				  Professions Code and sections
				  12599.6 and
				  12599.9, subdivision (e), of the
				  Government Code.
(c) False or misleading
				  statements in a document required by law to be filed with a government agency,
				  including the annual registration and renewal reports filed with the Attorney
				  General and informational returns filed with the Internal Revenue Service and
				  Franchise Tax Board. The omission of material information in response to a question
				  in a document required by law to be filed with a government agency constitutes a
				  false or misleading statement.
(d)
				  Failure to comply with the standards of conduct for nonprofit corporations in
				  sections
				  5230 through
				  5260 and
				  7230 through
				  7238 of the
				  Corporations Code.
(e) Failure to
				  prepare annual financial statements using generally accepted accounting principles
				  that are audited by an independent certified public accountant in conformity with
				  generally accepted auditing standards, as required by section
				  12586, subdivision (e), of the
				  Government Code.
(f) Failure to produce
				  records in response to a subpoena or written request from the Attorney
				  General.
(g) An adverse action by a
				  governmental entity related to the operation of a charitable corporation, trustee,
				  commercial fundraiser for charitable purposes, fundraising counsel for charitable
				  purposes, commercial coventurer, charitable fundraising platform, platform charity
				  or a person or entity that performs the functions of such registrants regardless of
				  title, or the conduct of a solicitation for charitable purposes, including misuse of
				  charitable assets and unlawful or misleading conduct related to solicitation for
				  charitable purposes.
(1) An adverse action by a
				  governmental entity includes, but is not limited to, suspension, revocation or
				  denial of registration, civil or criminal judgment, assessment of a fine,
				  administrative or civil penalty, entry of assurance of voluntary compliance or
				  enforceable settlement agreement or an equivalent action regardless of its
				  title.
(2) This includes any entity that
				  has an officer, director or key employee, or is owned or operated by a person who
				  was the subject of an adverse action or who owned or operated such an entity or was
				  directly involved in such actions.