Notice Regarding Contributions to Consumer Attorneys of California

Contributions made to the Consumer Attorneys of California (“CAOC”) may warrant a closer review, and depending on the donation amount, additional California forms may need to be filed.

Contributions to CAOC may include membership dues or PAC donations that support the organization’s advocacy, educational initiatives, and political activities. These funds are generally used to support lobbying efforts aligned with plaintiff-side interests, such as consumer protection and personal injury law, as well as to provide resources and support to member attorneys.

The CAOC is organized as a nonprofit organization under Section 501(c)(6). Contributions to CAOC involve supporting their advocacy, education, and political efforts through PAC donations or membership, which funds lobbying for plaintiff-side interests (like consumer rights, personal injury laws) and provides member resources, but attorneys must navigate State Bar rules on political spending and ethical duties when contributing or representing clients in these areas. In order for cash contributions to be tax deductible, they must be made to nonprofit organizations under Section 501(c)(3). As such, any cash contributions particularly for political or legislative purposes (such as Uber’s 25% contingency) are considered political contributions and therefore not deductible for tax purposes.

Any membership dues, sponsorships, president’s club, or payments unrelated to political or legislative initiatives can be considered an ordinary business expense and thereby deductible as “membership & dues” expense. Any cash given to CAOC for ballot measures, legislative changes, or political influence must be classified as a political contribution and thereby non-deductible for tax purposes.

Additionally, if $10,000 or more is donated to the CAOC in a calendar year, California requires FPPC Form 461 to be filed. If $25,000 or more is donated in a calendar year, FPPC Form 461 must be filed electronically. Donors have to register online to obtain an ID, where a form is filled out and then emailed to CAOC. CAOC would subsequently send back information that contains their login ID to facilitate electronic filing. The due date for most donors on filing FPPC Form 461 is February 2^nd of the preceding calendar year, so the 2025 filing is due on February 2, 2026.

To obtain assistance in filing FPPC Form 461, it is recommended that donors reach out to Samantha Helton at Samantha@caoc.org for the necessary information to file FPPC Form 461. Samantha can also refer donors to an outside firm that can assist with filing FPPC Form 461 with costs estimating at about $500 for a one-time set-up and $200 annually afterwards. This outside firm also assists CAOC with its compliance filings, so it is an expert and specializes in specific filings related to FPPC Form 461.