California is currently holding nearly $15 billion in unclaimed property, one of the largest totals nationwide. These funds and valuables legally belong to residents, businesses, and nonprofit organizations across the state — yet much of the money remains untouched because owners often don’t know it exists.
From forgotten bank accounts to uncashed checks and insurance payouts, billions are sitting in the state’s unclaimed property system waiting to be claimed.
Nonprofits Discover Missing Funds
A recent investigation revealed that several major charities and hospitals were unaware that the state was holding thousands — and in some cases, hundreds of thousands — of dollars in their names.
For example, food banks across California are collectively owed at least $95,000, children’s hospitals are owed more than $1.3 million, and a well-known national wish-granting charity is owed over $46,000.
In Yolo County, a local food bank discovered it had at least $2,500 sitting in the state’s database — money it never knew existed.
For organizations serving communities facing food insecurity and financial hardship, even a few thousand dollars can make a significant difference.
Why Isn’t the Money Automatically Returned?
Currently, California’s system largely requires individuals and organizations to search the state database themselves to see if money is owed to them.
While state law requires the Controller’s Office to mail notices for properties valued at $50 or more, critics say the process remains too passive and relies heavily on people taking the initiative to search online.
Advocates argue the burden should shift from property owners to the state. Several other states have already adopted more proactive approaches.
Other States Are Sending Checks Automatically
Across the country, states are modernizing their unclaimed property systems by using identity verification and data-matching tools to automatically return smaller amounts of money.
Examples include:
- North Dakota, which can automatically send checks for certain properties valued up to $1,000.
- Pennsylvania, which runs a program that verifies ownership and sends payments for claims up to $500.
- South Carolina, along with states like New York, Washington, Oregon, Mississippi, Connecticut, and Virginia, has implemented similar proactive systems.
These programs use secure data tools to confirm identities and mailing addresses before issuing payments — eliminating the need for residents to file formal claims in many cases.
Is California Moving Toward Reform?
State officials say modernization efforts are underway. In early outreach efforts, the Controller’s Office began prescreening accounts and mailing letters to individuals with between $500 and $5,000 in unclaimed property.
That pilot effort resulted in nearly 100,000 letters sent and more than $25 million returned to over 22,000 individuals.
Officials say they are reviewing lessons from that outreach as they work toward improving the system. However, a bill aimed at expanding the state’s ability to proactively return funds stalled in the Senate last year and is expected to resurface.
Where Does Unclaimed Property Come From?
Unclaimed funds typically originate from:
- Forgotten bank accounts
- Insurance payouts
- Uncashed payroll or refund checks
- Security deposits
- Overpayments
- Contents of abandoned safe deposit boxes
According to the Controller’s Office, about one in three people who search the database find property in their name.
What This Means for Californians
With $15 billion currently waiting to be claimed, billions could be sitting unnoticed under personal or organizational names. Until a fully automatic return system is implemented statewide, residents, businesses, and nonprofits must actively check the state database to see if they’re owed money.
For many families and charitable organizations — especially during financially challenging times — even small amounts can provide meaningful relief.
