Written by Kevin Dean, President & CEO, Tennessee Nonprofit Network
The lifeblood of many nonprofits is the generosity of individual donors. From funding innovative projects to sustaining daily operations, these contributions represent a crucial vote of confidence in the organization's mission. However, this trust hinges on one essential element: donor privacy. Legislation requiring nonprofits to disclose donor lists to legislators, for any reason, poses a significant threat to this trust and, consequently, the health of the entire nonprofit sector. The Supreme Court has even weighed in on this issue. Below are the reasons why we must continue talking about donor privacy:
Privacy Protects Individual Liberty: At its core, donor privacy embodies the fundamental right to freedom of association and expression. Donors should have the freedom to support causes they believe in without fear of retribution, harassment, or social pressure. This allows for a diverse and vibrant philanthropic landscape, encompassing unpopular or controversial causes that might otherwise struggle to find support. Forcing donor disclosure chills this freedom, potentially silencing important voices and hindering vital work addressing sensitive issues.
A Shield Against Harassment and Discrimination: Public disclosure of donor lists can expose individuals to unwelcome attention, threats, and even discrimination. This is particularly concerning for those supporting underrepresented causes or facing societal prejudice. Donors of religious organizations, political activism groups, or LGBTQ+ charities, for example, might face negative consequences if their support were made public. This fear could deter individuals from contributing, ultimately harming the causes they care about.
Erosion of Trust and Future Donations: Nonprofits rely on building and maintaining trust with their donors. A forced breach of donor privacy would be a severe betrayal of this trust, potentially leading to decreased donations and jeopardizing the organization's financial stability. Donors who feel unsafe or unsure about the confidentiality of their information are less likely to contribute or continue their support. This can have a ripple effect, impacting the organization's ability to serve its beneficiaries and fulfill its mission.
Legislative Interference and Mission Creep: Requiring donor disclosure sets a dangerous precedent, allowing legislators to potentially pressure or coerce organizations based on their donors' political affiliations or beliefs. This undermines the independence and autonomy of the nonprofit sector, blurring the lines between philanthropy and political influence. It opens the door to mission creep, potentially diverting essential resources away from the organization's core objectives.
Concerns about transparency and accountability within the nonprofit sector are legitimate. However, demanding donor lists is not the answer. Instead, efforts should focus on strengthening existing regulations and reporting requirements for nonprofits. Clear guidelines on financial reporting, governance structures, and conflict of interest policies can foster transparency without compromising sensitive donor information.
Protecting donor privacy is not just about safeguarding individual rights; it's about upholding the values of a vibrant civil society. It allows for a diverse range of voices to be heard, empowers individuals to express their beliefs freely, and ensures a robust nonprofit sector that tackles critical issues without undue influence. Legislation demanding donor disclosure does the opposite, silencing voices, chilling philanthropy, and ultimately weakening the very fabric of a healthy civil society.
In conclusion, protecting donor privacy is not simply a matter of protecting information; it's about safeguarding the fundamental principles of freedom, trust, and a diverse and impactful nonprofit sector. Alternatives exist to ensure transparency and accountability, without sacrificing the essential right to give privately. By upholding donor privacy, we ensure a thriving philanthropic landscape that can continue to address the challenges of our time, driven by the generosity and trust of individuals who believe in its mission.