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House Bill 1212 on nonprofit donor protections in conference committee

By Bente Bouthier

Posted April 21, 2023

lenkowsy and cummings

Claudia Cummings, Indiana Philanthropy Alliance CEO (left) and O’Neil School of Public Affairs professor emeritus Leslie Lenkowsky (right) (hb1212 interviews)

House Bill 1212, which would protect nonprofit organizations’ right to have anonymous donors, is in a conference committee.   

Donor privacy is already protected because of Supreme Court ruling, but advocates say it establishes a state-level protection. 

Indiana Philanthropy Alliance CEO Claudia Cummings said the legislation is encourages people to give charitably.   

“To me anyway, the most critical reason is that sometimes we give to organizations that we feel strongly about and others feel differently about. And in those cases, there's an opportunity for harassment, intimidation."

One concern with legislation like House Bill 1212 is that nonprofits involved in politics won’t have to share information about their donors, according to O’Neil School of Public Affairs professor emeritus Leslie Lenkowsky.   

Listen: Philanthropy and Nonprofit Management Expert Eugene R. Tempel

Conversation on donor privacy ramped up 15 years ago with development of election finance law, Lenkowsky said. But so far, challenges to donor privacy have held up as freedom of speech.  

“That is the way in which we express what we care about," he said. "And that could be care about politically or in other ways."

The Supreme Court initially ruled in favor of privacy protections in 1958’s NAACP v. Alabama case when the organization refused to give the state a list of its rank-and-file members. 

It upheld the precedent recently when California wanted the conservative political advocacy group, Americans For Prosperity, to provide a list of its largest donors to the state.  

Read more: Nearly $400,000 in CARES money distributed to 20 local nonprofits this fall

Senators added exceptions to Indiana’s law, which House lawmakers didn’t support. It’s in committee to work through the disagreements before heading to Governor Eric Holcomb.  

Lenkowsky said not all nonprofit charities are political and donors don’t always want their names attached to a cause. 

Nonprofits must provide a list of donors to the Internal Revenue Service.  

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