U.S. Senators Young, Lankford introduce bill to protect privacy of charitable donors

U.S. Senators Todd Young (R-Ind.) and James Lankford (R-Okla.) introduced the Protecting Charitable Giving Act to address the unlawful disclosure of data identifying donors who contribute to nonprofit organizations. This legislation would help nonprofit organizations better protect the identities of their donors by reinforcing existing privacy protections and increasing the penalties for 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.”

“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,” said Senator Lankford.

In an effort to verify the legitimacy of tax-exempt organizations, the Internal Revenue Service (IRS) requires these organizations to collect the names and addresses of all major donors. While the IRS 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 tried to force tax-exempt organizations to disclose donor information. The Supreme Court, however, has ruled that these efforts infringe upon First Amendment rights.

The Protecting Charitable Giving Act would modify penalties relating to the disclosure of donor information to better ensure donor privacy and protection. More specifically, this legislation would:

• Increase the penalty of willful disclosure of the identities of donors to tax-exempt organizations from no more than $5,000 to between $10,000 and $250,000.
• Expand the jurisdiction of prosecution to include the judicial district in which the victim of the offense resides to ensure all cases are subject to a fair trial.

The Protecting Charitable Giving Act is supported by Philanthropy Roundtable, Americans for Prosperity, and Indiana Philanthropy Alliance.

“Philanthropy Roundtable is deeply grateful to Senators Young and Lankford for their unwavering leadership protecting donor privacy. The right to give how, when and where donors choose, free from the fear of persecution and retaliation, is essential to safeguarding the free association that strengthens our society. The Protecting Charitable Giving Act strengthens federal law to substantially increase the penalties for leaking private donor information and make it easier for victims to pursue justice. Donor privacy has been under fire for years. This law is needed more than ever to protect every American’s right to privately contribute to the causes and communities they care about most,” said Christie Herrera, President and CEO, Philanthropy Roundtable.

American charities are the lifeblood of this country and protecting the privacy of Americans, so that they can give to those charities without fear, is crucially important. The Protecting Charitable Giving Act is commonsense legislation that protects the First Amendment rights of citizens, no matter which charities they choose to support. It sends a clear message to bureaucrats that they cannot invade American’s privacy without serious consequences,” said Brent Gardner, Chief Government Affairs Officer, Americans for Prosperity.

“The Protecting Charitable Giving Act introduced by Senator Young is a vital step forward for philanthropy in Indiana and nationwide. At Indiana Philanthropy Alliance, where we represent a broad network of philanthropic organizations, we understand the importance of donor privacy as a cornerstone of charitable giving. This legislation safeguards that privacy, ensuring donors can support causes they believe in without fear of reprisal or exposure. Setting stronger penalties for breaches and reinforcing legal protections encourages continued generosity and is essential to maintaining support for the crucial work done by nonprofits across our state and nation,” said Angela Carr Klitzsch, President and CEO, Indiana Philanthropy Alliance.

Full legislative text can be found here.

Senators Young and Lankford previously introduced this bill in May 2024.