The Disclosure Digest: March 2, 2021
 Welcome to Disclosure DigestMarch 2, 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. 
Montana governor rescinds executive order compelling disclosure of political spendingOn Feb. 12, Montana Gov. Greg Gianforte (R) issued Executive Order No. 3-2021, rescinding former governor Steve Bullock's (D) directive requiring entities doing business with the state to disclose their donations to organizations engaged in political spending. What Bullock's order required Bullock issued his order, Executive Order No. 15-2018, on June 8, 2018. It established that "it is the policy of the executive branch that entities seeking to do business with the State of Montana must disclose contributions or expenditures they have made in elections." Specifically, Bullock's order required any business bidding for state government contracts valued at $25,000 or more for services or $50,000 or more for goods disclose all "covered expenditures" made in the past two years. A "covered expenditure" was defined as "a contribution, expenditure, or transfer made by the contracting entity, any of its parent entities, or any affiliates or subsidiaries" on behalf of a political candidate, a political party, or a party committee. It also included contributions to "another entity, regardless of the entity's tax status, that pays for an electioneering communication, or that makes contributions, transfers, or expenditures to another entity, regardless of its tax status, that pays for electioneering communications." What happened next On Aug. 28, 2019, the Illinois Opportunity Project, a 501(c)4 group that engages in issue advocacy, filed suit against Bullock in the U.S. District Court for the District of Montana. The group alleged Bullock's order violated its First Amendment rights "by requiring disclosure of donations, ending the privacy of speech-oriented association." The group asked that the court declare Bullock's order unconstitutional and enjoin its enforcement. On Aug. 31, 2020, Judge Charles Lovell ruled against the Illinois Opportunity Project, finding that the group lacked standing to bring its claim for relief. Lovell, a Ronald Reagan (R) appointee, granted the state's motion for summary judgment. The Illinois Opportunity Project appealed Lovell's decision to the U.S. Court of Appeals for the Ninth Circuit. Meanwhile, on Nov. 3, 2020, Gianforte won the governorship, defeating Democrat Mike Cooney 54.4%-41.6% (Libertarian Lyman Bishop won 4.0% of the vote). Bullock was term-limited and ineligible to run for re-election. What Gianforte's order did, and what comes next Gianforte rescinded Bullock's order. Gianforte said Bullock had exceeded his authority in issuing the order because "it is the province of the legislature to regulate election-related disclosures." Gianforte also referenced the allegations made by the Illinois Opportunity Project in its lawsuit against Bullock. Following Gianforte's order, the Illinois Opportunity Project voluntarily withdrew its appeal of the district court's ruling, effectively concluding the matter. What we're reading
The big pictureNumber of relevant bills by state: We're currently tracking 30 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:
Recent legislative actionsFor complete information on all of the bills we are tracking, click here.
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