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Welcome to Disclosure Digest
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May 26, 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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Iowa enacts law barring collection, release of nonprofit donor information
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On May 20, Iowa Gov. Kim Reynolds (R) signed HF309 into law, barring public agencies from collecting or releasing personal information about donors to nonprofits.
What the bill does
HF309 prohibits a public agency (defined as "a state or municipal governmental unit, including but not limited to the state of Iowa, and a department, agency, office, commission, board, or division of the state) from doing the following:
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Requiring a nonprofit to provide personal information about its donors.
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"Personal information" is defined as "any list, record, register, registry, roll, roster, or other compilation of data that directly or indirectly identifies a person as a member, supporter, or volunteer of, or donor of financial or nonfinancial support to, any entity which is exempt from taxation under section 501(c) of the federal Internal Revenue Code."
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Disclosing any personal information about a nonprofit's donors already in the agency's possession "without the express, written permission of every member, supporter, volunteer, and donor" of the nonprofit.
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Requesting or requiring that a current or prospective contractor provide the agency with a list of the nonprofits "to which the contractor has provided financial or nonfinancial support."
These prohibitions do not apply in the following circumstances:
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"Pursuant to a lawful warrant issued by a court of competent jurisdiction."
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In compliance with an agreement between a public agency and a nonprofit.
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"Pursuant to a lawful request for discovery," provided the following conditions are met:
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The requestor shows a "compelling need for the personal information by clear and convincing evidence."
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The requestor obtains a protective order "barring disclosure of personal information to any person not directly involved in the litigation."
HF309 also specifies its provisions do not apply to the state's Campaign Disclosure Act.
Legislative history
On Feb. 23, the Iowa House of Representatives voted 83-9 in favor of HF309. Fifty-six Republicans and 27 Democrats voted in favor of the bill. Democrats cast the nine dissenting votes.
On April 13, the Iowa State Senate approved HF309 by a vote of 45-1. Republican Sen. Julian Garrett cast the sole dissenting vote.
Political context: Iowa is a Republican trifecta, meaning that Republicans control the governorship and both chambers of the state legislature. Iowa has been a Republican trifecta since 2017.
What other states are doing
State lawmakers in Nebraska, North Carolina, West Virginia, and Wyoming have considered similar legislation this year. Nebraska, West Virginia, and Wyoming are Republican trifectas, meaning that Republicans control the governorships and both chambers of the state legislatures in each. North Carolina has a divided government: Gov. Roy Cooper is a Democrat, but Republicans control majorities in both chambers of the North Carolina General Assembly.
Arkansas and South Dakota, both Republican trifectas, have enacted similar legislation 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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California AB236: This bill would require campaign finance committees to report the name of "each individual who owns or controls, or controls the contributions and expenditures of, a limited liability company or a foreign limited liability company from which the committee received a campaign contribution."
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Democratic sponsorship.
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Amended and ordered to a third reading on May 20.
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California SB686: This bill would require a limited liability company that qualifies as a committee or a sponsor of a committee under the state's campaign finance laws to file a statement of members with the secretary of state. The statement of members must include a list of all persons who have a membership interest in the limited liability company of at least 10% or who made a cumulative capital contribution of at least $1,000 to the company after it qualified as a committee or sponsor of a committee, or within the 2 calendar years before it qualified.
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Democratic sponsorship.
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Read a second time and ordered to a third reading on May 20.
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Iowa HF309: This bill would prohibit a public agency from disclosing identifying information about a nonprofit's donors.
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Sponsorship not specified.
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Signed into law on May 20.
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Maine LD1284: This bill would repeal a law requiring that communications financed by independent expenditures include a statement listing the top three funders of the entity making the independent expenditure. It would also specify that only party committees and political action committees, and not individuals, are required to file reports of independent expenditures aggregating in excess of $250 during any one candidate's election.
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Republican sponsorship.
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Died in committee on May 19.
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