The Disclosure Digest: March 16, 2021
![]() Welcome to Disclosure DigestMarch 16, 2021Explore the legislation, litigation, and advocacy surrounding nonprofit donor disclosure with The Disclosure Digest, a Ballotpedia newsletter. 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. ![]() South Dakota legislature adopts bill barring public agencies from collecting, releasing information about nonprofit donorsOn March 8, the South Dakota state Senate approved a bill that would bar public agencies from requiring individuals or groups to disclose identifying information about a nonprofit's donors, clearing the way for Gov. Kristi Noem (R) to sign it into law. What the bill does SB103 would bar any public agency (including state and municipal government units and courts) from:
The legislation does not bar public agencies from furnishing personal information about a nonprofit's donors, supporters, etc., for:
Other states considering similar legislation: Iowa (HF309, HSB28, and SSB1036), Nebraska (LB370), and Tennessee (HB0159 and SB1608). All three states are Republican trifectas. Legislative history Sens. Casey Crabtree and James Bolin and Reps. Kirk Chaffee, Tim Goodwin, and Tim Reed – all Republicans – introduced SB103 on Jan. 26. On Feb. 17, the state Senate approved the bill, sending it to the South Dakota House of Representatives. On March 3, the House approved an amended version of the bill 55-13, with 55 Republicans voting in favor and eight Democrats and five Republicans voting against it. The Senate unanimously agreed to the amendments on March 8. Noem is expected to sign SB103 into law. Political context: South Dakota is a Republican trifecta, meaning Republicans control the governorship and both chambers of the state legislature. South Dakota has been a Republican trifecta since 1995. Other relevant legislation in South Dakota HB1079, signed into law on March 3, prohibits any executive branch entity (e.g., the governor, the secretary of state, etc.) from requiring "any annual filing or reporting of a nonprofit corporation or charitable trust that is more stringent, restrictive, or expansive than that required by state or federal law." It does not apply to information required "to determine eligibility for or compliance with a state grant or contract." The bill also exempts information required for, or obtained during, a state fraud investigation or enforcement action. Reactions Mark Miller, an attorney for Noem, said the following in support of HB1079: "What is this bill about? It's really about the American way of life. … It's also meant to return us to the traditional role of anonymity in support for certain causes that one believes in." Rep. Ryan Cwach (D), who voted against both SB103 and HB1079, said, "We expect accountability and we expect transparency from our government, and so the idea that we want to try and keep how people are influencing our government anonymous goes against the whole bedrock of our society." What we're reading
The big pictureNumber of relevant bills by state: We're currently tracking 34 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): Recent legislative actionsFor complete information on all of the bills we are tracking, click here.
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