California Nonprofit Compliance Checklist

California nonprofits must meet ongoing compliance requirements to stay legally active, maintain tax-exempt status, and avoid penalties. Beyond filing an annual IRS return, organizations must also report to multiple California state agencies, including the California Attorney General and the Secretary of State. Missing even one required filing can lead to fines, suspension, loss of fundraising rights, or revoked tax-exempt status.

Because California has some of the strictest nonprofit regulations in the country, staying organized is essential from the first year onward.

This California nonprofit compliance checklist covers the key 2026 filing requirements, deadlines, registrations, and governance rules nonprofits need to remain in good standing and operate without interruption.

The Two California State Agencies You Must File With

This is the most important thing to understand first. California nonprofits are not just accountable to the IRS. You must file separately with:

• The California Attorney General's Office, which oversees all charitable organizations that solicit or operate in California
• The California Franchise Tax Board, which maintains your state-level tax-exempt status independently of your federal status

These two agencies do not share information with each other in a way that protects you. Staying current with the IRS does not mean you are current with the FTB. Losing your FTB exemption and losing your AG registration are two separate problems that each carry their own consequences.

Part 1 — California Attorney General: Annual Filings

The AG's Registry of Charities and Fundraisers requires all registered charitable organizations to renew their registration every year. These filings are tied directly to your fiscal year-end.

Form RRF-1 — Annual Registration Renewal Fee Report

This is your primary annual filing with the AG's office. It must reach the Registry no later than 4 months and 15 days after your fiscal year closes—that is, May 15th for calendar-year organizations.

The filing fee is based on your annual gross revenue:

Form CT-TR-1 — Annual Treasurer's Report

If your gross receipts are under $50,000 for the fiscal year, you must also file this Treasurer's Report alongside your RRF-1. It is a straightforward financial summary that shows how money was received and spent during the year.

Raffle Registration — Forms CT-NRP-1 and CT-NRP-2

California strictly regulates nonprofit charitable gaming. If your organization plans to hold a fundraising raffle at any point during 2026, you must:

• Submit Form CT-NRP-1 to register with the AG's office before a single ticket is sold—no exceptions
• File Form CT-NRP-2 by October 1st each year to report results from any raffle held during the prior year

Running an unregistered raffle in California is a legal violation, regardless of how informal or small the event may be.

Part 2 — California Franchise Tax Board: Annual Filing

Form 199 or FTB 199N (e-Postcard)

The Franchise Tax Board requires a separate annual filing to maintain your California state tax-exempt status. This filing is due 4.5 months after your fiscal year ends — May 15th for calendar-year organizations.

• If your gross receipts are normally $50,000 or less, file the simplified FTB 199N electronically—it takes minutes
• If your gross receipts exceed $50,000, you must file the full Form 199

This matters more than most founders realize. Losing your FTB exemption does not just create a paperwork problem. It means your organization becomes subject to California's 8.84% corporate tax rate on net income — on top of any federal consequences. The FTB can and does apply this retroactively.

Part 3 — Federal IRS Filings

All California 501(c)(3) organizations must file an annual information return with the IRS. The correct form depends entirely on your organization's size:

Failing to file Form 990 for three consecutive years results in automatic revocation of your federal tax-exempt status. The IRS does not send warnings before this happens.

If your nonprofit has paid employees, you must also file Form 941 on a quarterly basis to report withheld income taxes, Social Security, and Medicare contributions.

Part 4 — Internal Governance: What Your Board Must Do Every Year

State and federal filings are only half of the compliance picture. California law and IRS standards both require your organization to maintain strong internal governance practices year-round — and auditors look at this closely.

Board meetings and written minutes

Hold meetings as often as your bylaws require. Every meeting must be documented with formal written minutes that capture attendance, motions made, votes taken, and any financial decisions approved by the board.

Annual conflict of interest review

Every board member must review, update, and sign the Conflict of Interest Policy once per year. This is an IRS requirement for 501(c)(3) organizations and a core expectation under California nonprofit governance standards.

Executive compensation documentation

Your board must formally review and document executive compensation annually. The IRS scrutinizes this during audits to confirm that compensation is reasonable and was approved through a proper process, not set informally.

Records retention—minimum 7 years

Keep all financial records, tax filings, and bank statements for at least seven years. Your founding documents—Articles of Incorporation, Bylaws, and IRS Determination Letter—should be maintained permanently and remain accessible to board members at all times.

Major financial decisions

Every significant financial commitment must be voted on and documented by the full board. Verbal approvals or informal agreements do not meet the standard.

Part 5 — California-Specific Rules Most Nonprofits Miss

Worker classification under AB5

California's Assembly Bill 5 applies one of the strictest worker classification tests in the country. Nonprofits are not exempt. If you use contractors for ongoing, integrated work, there is a real chance California law treats them as employees. Misclassification can result in back taxes, penalties, and legal exposure for your board.

Workers' compensation insurance

Any California nonprofit with at least one employee is legally required to carry workers' compensation insurance under the California Labor Code. There is no exception for small organizations, part-time staff, or low-risk roles.

Fundraising solicitation disclosures

Every fundraising appeal your organization sends — by mail, email, social media, or in person — must clearly disclose your nonprofit's tax-exempt status. California's charitable solicitation laws are more specific on this point than most states.

Cal/OSHA Injury and Illness Prevention Program

All California employers, including nonprofits, must maintain a written Injury and Illness Prevention Program (IIPP). This is a Cal/OSHA requirement that applies regardless of your organization's size or the nature of your work.

Your 2026 Master Compliance Calendar

Download Your Free 2026 Checklist

Grab the printable version to track every item as you go.

⬇ Download the 2026 California Nonprofit Compliance Checklist (PDF)

Do Not Let Compliance Be an Afterthought in 2026

The organizations that stay in good standing are the ones that treat compliance as an ongoing system—not a once-a-year scramble. Block the filing dates into your board calendar now, assign ownership of each item, and use the checklist to review your status at every board meeting.

If you are still building the foundation of your organization, start with our full roadmap: How to Start a Nonprofit Organization in California in 12 Steps →

For hands-on support with California nonprofit formation, the team at Beacon Nonprofit is ready to help you get it right from the start.

Start Your Nonprofit Organization Today