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Welcome to Disclosure Digest
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April 13, 2021
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Join us today as we explore the legislation, litigation, and advocacy surrounding nonprofit donor disclosure.
Under federal law, nonprofits are generally not required to disclose to the public information about their donors. State laws, however, may require such disclosure. Some say expanded donor disclosure provisions minimize the potential for fraud and establish public accountability. Meanwhile, others say that disclosing to the public information about donors violates privacy rights and can inhibit charitable activity. |
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BALLOTPEDIA |
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North Carolina legislature considers bills barring release of information about nonprofit donors
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On April 6, 10 North Carolina state senators (nine Republicans and one Democrat) introduced S636, which would prohibit the release of identifying information about donors to a nonprofit organization without the consent of that organization's board of directors.
On April 7, eight state senators (seven Republicans and one Democrat) introduced S685, which would bar state and local government entities from requiring the disclosure of identifying information about a nonprofit's donors.
What the bills would do
S636
S636 would amend North Carolina's nonprofit corporation laws to bar the disclosure of "the identity of any person giving monies or other tangible goods to [a] nonprofit corporation for furthering a charitable purpose of the nonprofit organization" without the consent of the organization's board of directors. This prohibition would apply to any identifying information reported to the Internal Revenue Service on Form 990.
S636 would also amend the state's public records laws, making nonprofit donor information confidential, "except as specifically required by State or federal law." The bill would take effect Oct. 1.
S685
S685 would prohibit any state or local government entity from enacting any "rule, regulation, or policy" requiring:
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An individual to disclose his or her donation to a nonprofit.
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A nonprofit to disclose its membership or donors.
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"Any list, record, register, registry, role, roster, or other compilation of data of any kind that directly or indirectly identifies a person as a member, supporter, or volunteer of, or donor of financial or nonfinancial support to a nonprofit corporation."
S685 would not apply to criminal investigations, court orders, or income tax reviews conducted under state law. The bill would take effect Oct. 1.
Legislative history
On April 6, Sens. Joyce Krawiec (R), Norman Sanderson (R), Bob Steinburg (R), Deanna Ballard (R), Dan Blue (D), Warren Daniel (R), Carl Ford (R), Kathy Harrington (R), Ralph Hise (R), and Paul Newton (R) introduced S636. It passed its first reading and was referred to the Committee on Rules and Operation of the Senate on April 7, where it is pending.
Sens. Jim Burgin (R), Kevin Corbin (R), Chuck Edwards (R), Lisa Barnes (R), Steven Jarvis (R), Tom McInnis (R), Blue, and Newton introduced S685 in the Senate on April 7. It passed its first reading and was referred to the Committee on Rules and Operation of the Senate on April 8, where it is pending.
Blue, a co-sponsor on both bills, is the only Democrat to have come out in support of these bills.
Political context: North Carolina has divided government. Gov. Roy Cooper is a Democrat, but Republicans control majorities in both chambers of the North Carolina General Assembly.
What other states are doing
State lawmakers in Arkansas, Iowa, Nebraska, and Tennessee are considering similar legislation this year. South Dakota has enacted similar legislation, making it the first state to do so this year. |
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The big picture
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Number of relevant bills by state: We're currently tracking 38 pieces of legislation dealing with donor disclosure. On the map below, a darker shade of green indicates a greater number of relevant bills. Click here for a complete list of all the bills we're tracking.
Number of relevant bills by current legislative status:
Number of relevant bills by partisan status of sponsor(s):
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Recent legislative actions
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For complete information on all of the bills we are tracking, click here.
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Arkansas SB535: This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.
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Republican sponsorship.
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The Senate approved the bill on April 7 and sent it to the House, where it has been assigned to the House State Agencies and Governmental Affairs Committee.
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Idaho H0245: This bill would prohibit foreign contributions, independent expenditures, and electioneering in Idaho election campaigns.
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Sponsorship not specified.
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The Senate approved the bill on April 8.
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North Carolina S636: This bill would provide that, except as specifically required by state or federal law, the identity of any person giving money or other tangible goods to a nonprofit corporation or furthering any charitable purpose of that nonprofit corporation is confidential.
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Bipartisan sponsorship.
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Introduced on April 6 and referred to the Senate Rules and Operations Committee on April 7.
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North Carolina S685: This bill would prohibit public agencies from requiring any person or nonprofit to provide identifying information about a nonprofit's donors. It would also prohibit the disclosure of any such information currently in the possession of a public agency.
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Bipartisan sponsorship.
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Introduced on April 7 and referred to the Senate Rules and Operations Committee on April 8.
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Tennessee HB0159: This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.
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Republican sponsorship.
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House Government Operations Committee hearing scheduled for April 12.
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Tennessee SB1608: This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.
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Republican sponsorship.
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Placed on the Senate's regular calendar for April 12.
Thank you for reading! Let us know what you think! Reply to this email with any feedback or recommendations.
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