Hawaii Follows California: What the New “Charitable Fundraising Platform” Rules Mean for Online Giving

Online donations once flowed through a small group of traditional fundraising portals. Not anymore. Large marketplaces, social networks, and niche fundraising apps now process millions of charitable gifts each year. 

California recognized this shift in 2023 with AB 488, creating a new regulatory category called a “charitable fundraising platform.” Hawaii has just passed its own version, scheduled to take effect July 1, 2026, and any company that helps nonprofits raise money online should pay attention.

Who the Hawaii Law Targets

If your business lets donors give to charities without leaving your site or app, Hawaii now sees you as more than a tech provider. Under the amended statute (Act 205), a charitable fundraising platform must:

• Register with the Attorney General before any solicitation occurs.
• Renew each year and file an annual report detailing donation volume, recipient charities, fees, and payout timelines.
• Provide conspicuous disclosures at checkout, including possible reasons a charity might not receive funds, maximum payout time, and all platform fees.
• Obtain written consent from every charity whose name or logo appears in a campaign.
• Hold donations in a separate account, then send them promptly with a full accounting of fees.

The law also introduces “platform charities.” These are donor-advised funds (DAFs) or other charitable entities that collect donations on behalf of the fundraising platform and then grant the money to the ultimate nonprofits. Platform charities must register, too, and may be held liable if funds are mishandled.

Why States Are Moving in This Direction

California’s AB 488 went live because regulators wanted transparency in a digital fundraising industry that had outgrown older statutes. Hawaii’s legislators cited the same goals (consumer protection, donor confidence, and better oversight) while acknowledging that overly strict rules could stifle innovation. Expect other states to watch both laws closely as online giving continues to climb.

Key Challenges for Platforms

1. Complex, shifting rules. Each state is free to tweak definitions, fees, and reporting formats. Companies that operate nationwide must track dozens of variations.
2. Consent at scale. Securing and storing written permission from thousands of nonprofits is no small task.
3. Payout logistics. Funds must stay segregated from commercial revenue and move quickly to charities. That demands banking infrastructure, accounting controls, and clear audit trails.
4. Public disclosures. Checkout pages need plain-language explanations of fees, holding periods, and the legal entity accepting the gift. Designers and lawyers must collaborate to get this right.

The Role of a Drop-In Donation Form

A purpose-built checkout form can remove much of the friction. When every dollar flows directly into a DAF, the platform avoids “custody of funds,” a key risk cited by regulators. Because the form already captures donor data, issues receipts, and tags the intended beneficiary, generating state-specific reports becomes far simpler.

For fundraising platforms that support thousands of nonprofits – and professional fundraisers that process high-volume campaigns – automating this last mile is critical. It shortens payout cycles, reduces manual reconciliation, and gives charities faster access to the money they need.