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Charities Challenge California Attorney General Over Alleged Misleading Solicitation Practices

SOUTHERN CALIFORNIA RECORD

Friday, April 4, 2025

Charities Challenge California Attorney General Over Alleged Misleading Solicitation Practices

State Court
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California 2nd District Court of Appeal | Official Website

A recent court decision has sparked significant attention as it challenges the enforcement of statutory provisions aimed at regulating charitable solicitations in California. On March 5, 2025, the Catholic Medical Mission Board, Inc. (CMMB) and Food for the Poor, Inc. (FFP) filed a complaint against Rob Bonta, Attorney General of California, in the Los Angeles County Superior Court. The case highlights a clash between charitable organizations and state regulatory efforts to prevent misleading practices in fundraising.

The plaintiffs, CMMB and FFP, are prominent charities that provide aid globally through donations of medicine and other resources. They were subject to cease and desist orders by the Attorney General's office for allegedly overvaluing in-kind donations and misrepresenting their financial efficiency ratios in donor communications. The Attorney General argued that these actions violated the Supervision of Trustees and Fundraisers for Charitable Purposes Act by misleading donors about how their contributions were used.

The trial court sided with CMMB and FFP on constitutional grounds, declaring sections of the Act as unconstitutional prior restraints on free speech under the First Amendment. Consequently, permanent injunctions were issued against enforcing these provisions without requiring further proof from the plaintiffs. However, this decision was contested by the Attorney General's office on procedural grounds, arguing that such relief should not be automatically granted upon finding constitutional invalidity without evidence of irreparable harm or threat of future injury.

In addition to seeking declaratory relief from penalties imposed by the Attorney General's office, CMMB and FFP sought a permanent injunction to prevent future enforcement of these statutory provisions against them or other entities. The trial court's issuance of these injunctions without additional evidence was later vacated by an appellate court which remanded the case for further proceedings to determine if injunctive relief is warranted based on proper pleading and proof.

Representing CMMB are attorneys Paul D. Murphy and Daniel N. Csillag from Murphy Rosen law firm; while Tracy L. Boak and Adam D. Miller from Perlman & Perlman represent FFP. The case was presided over by Judge James C. Chalfant with Case ID B315409/B318278/B315416/B318280.

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