Question 4: Does the CCPA apply to non-profits?

Generally, no.

The CCPA applies only to “businesses” – a term that is defined, in relevant part, as including “any legal entity that is organized or operated for the profit or financial benefit of its shareholders or other owners” and does business in the State of California.^[1]  Based upon this definition most not-for-profit organizations will be exempt from the CCPA.

Like all good general rules, there is an important exception.  Non-profits that “control or are controlled by” or that “shares common branding” with a business may be subject to the CCPA. For this purpose, “control” and “controlled” means ownership of, or the power to vote, more than 50% of the outstanding shares of any class of voting security of a business; control in any manner over the election of a majority of the directors, or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company.[2] “Common bonding” means a shared name, servicemark, or trademark.[3]

[1]           CCPA, § 1798.140(c)(1).

[2]           CCPA, § 1798.140(c)(2).

[3]           Id.

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