Valley Humane Society Applauds State Senator John Laird for Protecting Donor Intent and Reducing Charitable Distribution Barriers by Introducing SB 1288

PLEASANTON, CA – Valley Humane Society today praised State Senator John Laird (D-Santa Cruz) for introducing SB 1288, a landmark bill co-sponsored by CalNonprofits, Valley Humane Society, and San Diego Humane Society. The legislation establishes clear, fair, and consistent standards to ensure charitable gifts left to nonprofits are distributed promptly and without unnecessary administrative barriers that too often delay or obstruct donor intent.

“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.”

For Valley Humane Society, the need for SB 1288 is clear.

In 2021, Valley Humane was named as one of nine nonprofit beneficiaries in a donor’s IRA account. Despite the donor’s clear intention, Valley Humane was consistently denied their share until all nine nonprofits—none of whom knew they were co-beneficiaries—completed extensive paperwork to open new bank accounts within the same 90-day timeframe. Because nonprofits cannot control the actions or timelines of other organizations, this requirement resulted in a 2.5-year delay before the donor’s funds were finally released.

“This was an eye-opening experience,” said Melanie Sadek, CEO of Valley Humane Society. “Our donor’s sister was already grieving. To watch her encounter roadblock after roadblock—despite their loved one’s clear wishes—was devastating. This bill is about protecting families, respecting donors, and ensuring financial institutions provide a clear pathway for nonprofits to receive charitable gifts.”

Valley Humane’s experience reflects a concerning pattern. As Sadek began raising the issue with partners across the state, it became clear that Valley Humane’s experience wasn’t isolated. Delays are often associated with requests for private information about the donor, such as their last known address, or even their last three banking transactions—details nonprofits do not and should not possess. In some cases involving multiple nonprofit beneficiaries, each is required to provide a copy of the certified death certificate, when one should suffice. In other cases, nonprofits are not notified at all before accounts are silently escheated to the state as unclaimed property after three years of inactivity.  Nonprofits that are aware of their beneficiary status may still face delays in receiving funds due to additional requirements from financial institutions, like opening bank accounts, which require nonprofit leaders and board members to provide personal identifying information to the bank.

“There is no federal law requiring nonprofits to open bank accounts to receive beneficiary funds,” Sadek added. “These unnecessary requirements contribute to harmful delays.”

What SB 1288 Will Do

SB 1288 creates straightforward, statewide standards by:

• Requiring financial institutions to notify beneficiaries within 60 days of receiving proof of death.
• Prohibiting banks from requiring personally identifying information from nonprofit employees or requiring nonprofits to open new accounts.
• Ensuring each beneficiary can receive its share independently.
• Standardizing the documentation nonprofits must provide to verify their identity without providing unnecessary personal information of individuals associated with the nonprofit.

Support from Co-Sponsors

“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.”

“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.”

A Reminder for Californians About Beneficiary Designations

SB 1288 also underscores the importance of keeping beneficiary designations up to date on bank accounts, retirement accounts, and even donor-advised funds (DAFs), all of which can be left to charitable beneficiaries. Californians are also encouraged to periodically check the State Controller’s Unclaimed Property database to ensure no assets owed to them have gone unclaimed.

About Valley Humane Society

Envisioning a world in which every animal is loved and every person knows the love of an animal, Valley Humane Society creates a brighter future for cats and dogs by encouraging and strengthening the bond between people and pets. Valley Humane rescues and rehabilitates companion animals, champions responsible caretaking, shares pets’ soothing affections with people in need of comfort, and supports and preserves existing pet-guardian relationships. Whether you’d like to adopt an animal, share your passion for pets, or meet like-minded people, Valley Humane Society is Your Means to a Friend™.