Indy Standard

U.S. Senators Todd Young (R-Ind.) and James Lankford (R-Okla.) have introduced the Protecting Charitable Giving Act, aimed at preventing the unlawful disclosure of data identifying donors to nonprofit organizations. The proposed legislation seeks to bolster existing privacy protections and increase penalties for the disclosure of sensitive taxpayer data.

"Anonymous giving has long been a way for Americans to support philanthropic organizations that rely on generous charitable contributions. In recent years, donor privacy has been threatened on too many occasions," said Senator Young. "This legislation will address the disclosure of donor data to better protect both charitable organizations and their donors."

Senator Lankford added, “Nonprofits and their donors are an essential safety net for our communities—providing food, housing, and care to those who need it most. Oklahomans shouldn’t worry about their identities being made public after they provide a donation to a charitable organization. Millions of donors want to do something good without being recognized. We should honor their privacy as they care for others.”

The Internal Revenue Service (IRS) requires tax-exempt organizations to collect the names and addresses of all major donors in order to verify their legitimacy. While this collection form is public, the identities of the donors are considered sensitive information and are not subject to disclosure.

States like California and New York have attempted to compel tax-exempt organizations to disclose donor information, but these efforts have been ruled by the Supreme Court as infringing upon First Amendment rights.

The Protecting Charitable Giving Act would modify penalties relating to the disclosure of donor information with an aim to better ensure donor privacy and protection.

The bill is supported by Philanthropy Roundtable, Indiana Philanthropy Alliance, and Americans for Prosperity.

Christie Herrera, President and CEO of Philanthropy Roundtable expressed gratitude towards Senators Young and Lankford for their efforts in preserving federal donor privacy laws that protect generous Americans' rights and freedoms to support causes they care about most.

Claudia Cummings, President and CEO of Indiana Philanthropy Alliance, also voiced her support for the legislation, emphasizing the importance of donor privacy as a cornerstone of charitable giving. She believes that this legislation safeguards that privacy, ensuring donors can support causes they believe in without fear of reprisal or exposure.

Brent Gardner, Chief Government Affairs Officer at Americans for Prosperity, described American charities as the lifeblood of the country and stressed the importance of protecting citizens' privacy so they can give to these charities without fear.

The full legislative text can be found here.