Donor privacy and disclosure policy in Kentucky
| Donor privacy and disclosure policy |
| • Disclosure of nonprofit donor information to governments • Disclosure of nonprofit donor information to the public • Disclosure and political polarization |
This page is outside of Ballotpedia's current coverage scope and does not receive scheduled updates. If you would like to help our coverage grow, please consider donating to Ballotpedia. These pages covered donor privacy and disclosure policy in states from 2019 to 2023.
Donor disclosure and privacy policy refers to legislation or regulation governing the confidentiality of nonprofit donors' identities and/or personal information. Nonprofit groups are organizations that do not distribute surplus revenues as profits or dividends to shareholders. Instead, nonprofits use revenues for self-preservation or expansion. Tax-exempt nonprofits are regulated under Section 501 of the Internal Revenue Code. States may subject nonprofits to additional regulations beyond those imposed by the federal government.[1][2]
Of these nonprofit groups, only 501(c)(4) political education organizations can engage in political lobbying or issue advocacy, though they cannot advocate expressly for the election or defeat of particular candidates.
Under federal law, nonprofits were generally required to disclose to the public information about donors who contributed to fund campaign expenditures. State laws, however, could require more disclosure.
The appropriate degree of disclosure of nonprofit donor information to governments and the public and whether or not it is a source of political polarization was debated within policy circles. Advocates of donor disclosure policies argued that increased disclosure minimized the potential for fraud, established public accountability, prevented foreign influence in politics and elections, and limited the political influence of major donors who might seek to advance their private interests. Meanwhile, advocates of donor privacy argued that mandatory donor disclosure violated free speech rights, violated donors' rights to free association and privacy, stifled public debate and discussion, and could lead to donor harassment, backlash, or retaliation.[3][4]
This page covered legislation dealing with donor disclosure and privacy tracked by Ballotpedia from 2019 to 2023. It includes summaries of relevant legislation as well as the status and partisan sponsorship of each bill tracked during this period.
This article outlined proposed laws governing donor disclosure and privacy policy in Kentucky. This article also provided background information on the key terms and concepts associated with this policy area.
Relevant legislation in Kentucky
2023
The following is a list of relevant bills considered by the Kentucky State Legislature in 2023. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.
Note: If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature in 2023.
Historical comparison
State legislators introduced two donor privacy and disclosure bill(s) in Kentucky from 2020 to 2023. Broken down by year, legislators in Kentucky introduced:
- 1 bill(s) in 2020. Democrats sponsored one of these bills. No bills were enacted.
- 0 bill(s) in 2021.
- 0 bill(s) in 2022.
- 1 bill(s) in 2023. Republicans sponsored one bill. One bill was enacted.
Nationwide historical comparsion
The charts below show the number of donor privacy and disclosure bills introduced from 2020 to 2023. For a full list of donor privacy and disclosure bills introduced nationwide since 2020, click here.
Background
As of December 2023, under federal law, tax-exempt nonprofits, regulated under Section 501 of the Internal Revenue Code, were required to file annual financial reports with the Internal Revenue Service (IRS): IRS Form 990. Schedule B of IRS Form 990 collected the names and addresses of donors contributing more than $5,000 per year. In general, the IRS did not publicly release the information collected via Schedule B.[5]
In addition, nonprofits were typically required to register and file financial reports with the states in which they operated. However, exemptions varied according to the state and the type of entity involved. Although the federal government did not generally require nonprofits to disclose their donors, some states did. For instance, at least five states (California, Hawaii, Kentucky, Mississippi, and New York) required a nonprofit to submit an unredacted Schedule B to remain registered as a charitable organization.
Key terms and concepts
Nonprofit types
Section 501 of the Internal Revenue Code identified several types of tax-exempt nonprofits. Two of the most common nonprofits types are defined below:
- 501(c)(3): Organizations classified as 501(c)(3) are nonprofit charitable, religious, and educational organizations. These include organizations such as the Red Cross and Habitat for Humanity, as well as the American Civil Liberties Union and the Lucy Burns Institute, which provide, as defined in the federal code, “instruction of the public on subjects useful to the individual and beneficial to the community.”[6]
- 501(c)(4): Organizations granted 501(c)(4) status are political education organizations. These entities can engage in political lobbying. This includes donations to political committees that support or oppose ballot measures, bond issues, recalls, or referenda. 501(c)(4) organizations can thus engage in issue advocacy, but they are not allowed to advocate expressly for the election or defeat of a particular candidate.[7]
See also
Footnotes
- ↑ Investopedia, "Nonprofit Organization," accessed November 5, 2015
- ↑ Internal Revenue Service, "Applying for 501(c)(3) Tax-Exempt Status," accessed November 5, 2015
- ↑ Guidestar, "Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ London School of Economics, "Campaign finance laws that make small donations public may lead to fewer people contributing and to smaller donations," January 7, 2015
- ↑ Cornell University Law School, "26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc," accessed January 13, 2015
- ↑ Cornell University Law School, "26 CFR 1.501(c)(3)-1 - Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals," accessed January 13, 2014
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