California is holding $15 billion in unclaimed property. Other states automatically return the money.

California is holding roughly $15 billion in unclaimed property — one of the largest totals in the country. That’s money and valuables that legally belong to California residents, businesses and nonprofits. 

A CBS News California Investigates analysis found large charities and hospitals had no idea the state was holding on to tens of thousands of dollars that belonged to them. 

While state leaders say they want to return billions of dollars in unclaimed assets, CBS News California Investigates has learned the state is lagging behind others when it comes to reuniting people, businesses and nonprofits with their money.

California still largely requires people and organizations to search for unclaimed funds themselves, while other states have started automatically sending checks.

Much-needed unclaimed funds

“We are the most food-insecure county throughout California,” said Karen Baker, director of the Yolo County Food Bank. “I think the biggest challenge we face is trying to raise money.”

For Baker, every cent counts.

“There could not be a more high-need time than right now for any funds if you’re a food bank,” she said.

So imagine what she could do with $2,500. That’s just one of the sums we found in the state’s unclaimed property database that belongs to the Yolo Food Bank.

“It’s my money?” Baker asked, shocked to learn the state didn’t automatically notify nonprofits of their unclaimed funds.

“It would seem like it would be much more proactive to just send us the information, or better yet, send us a check of all unclaimed funds,” Baker said.

Unclaimed money owed to California nonprofits

A CBS News California Investigates analysis of the state’s unclaimed property database found the state owed:

• California food banks: at least $95,000
• Children’s hospitals: at least $1.3 million
• Make-A-Wish Foundation: more than $46,000

Many organizations had no idea the money was sitting in the state’s unclaimed property system — and they’re not alone.

The struggle to return money 

“We have $15 billion of Californians’ personal belongings that we want to return,” State Controller Malia Cohen said.

The month of February is now officially “Unclaimed Property Month” in California, thanks to a recent declaration by the state Legislature that she sponsored. But chances are, you had no idea.

Cohen said that California is trying to get the word out that one out of three people who search the state’s database find money or property in their name left over from old bank accounts, overpayments, or, in some cases, family heirlooms.

Could California do more? 

Advocates who study unclaimed property programs say California’s process places most of the responsibility on the owner to search for their money — a system that many states have already begun moving away from.

“Overall, [California’s] approach to returning money is too passive; it relies heavily on its website,” Ron Lizzi said.

Lizzi’s work advocating for unclaimed property reform has led to changes in Connecticut and Colorado.

“The burden shouldn’t be primarily on the owners to find and claim their property,” Lizzi said. “It should be primarily on the state to return what it reasonably can.”

Across the country, several states have adopted programs designed to automatically return smaller amounts of unclaimed money once ownership can be verified.

For example, North Dakota recently passed legislation allowing the state to automatically send checks for certain unclaimed property valued at up to $1,000.

In Pennsylvania, a program called “Money Match” uses data verification tools to confirm a person’s identity and address before sending payments for qualifying claims of up to $500.

South Carolina has implemented a similar initiative known as “Palmetto Payback.”

Other states, including New York, Mississippi, Washington, Oregon, Connecticut and Virginia, have also adopted systems that proactively return certain unclaimed funds.

Those programs rely on modern data matching tools that allow state agencies to verify identities and addresses before mailing checks directly to owners.

California is making changes 

While California has not yet implemented a comparable automatic return program statewide, Cohen said that is something she and her team are “actively working on” as the state moves toward modernizing its computer systems

State law currently requires the controller to mail a notice to the address on file if the state is holding at least $50 worth of property, but the law limits how the state can track people down.

A bill that would have made it easier for the controller stalled last year on the Senate floor.  It is expected to move forward soon. 

In January, the State Controller’s Office said it began prescreening and sending notices to individuals who have between $500 and $5,000 in unclaimed property.  

The agency says it mailed out just under 100,000 letters and returned more than $25 million in total unclaimed funds to more than 22,000 individuals.

The agency says it is now “evaluating lessons learned” during that initial outreach to determine how to move forward. 

In the meantime, CBS News California Investigates is stepping in to help reunite nonprofits with their much-needed money. We shared our findings with the State Controller, who says they will actively reach out to help reunite the nonprofits with their funds.

“We are going to go fact check your facts,” Cohen said, “and if that’s the case, then that’s your next story.”

We are also working with Karen Baker to help us reach out to the other food banks with unclaimed funds. 

“They will be so thrilled to hear about this,” Baker stressed. 

How to search California’s unclaimed property database

The state controller’s office says about one in three people who search the database find property in their name.

The money can come from:

• Forgotten bank accounts
• Insurance payouts
• Uncashed checks
• Security deposits
• Overpayments
• Family heirlooms or valuables stored in safe deposit boxes

You can search California’s unclaimed property database.