- Update: SB 416, the Personal Privacy Protection Act passed 63–43 in the House and 32–15 in the Senate. It is now before Gov. Josh Stein.
Imagine if every time you donated to a cause you believe in — be it an environmental group, pro-life advocacy, or criminal justice reform — you had to worry that your name might wind up on a government list and made public to those who opposed the cause. Now imagine that government employees could use that list to spark retaliation against you or pressure your employer. Sound far-fetched? It’s not. That’s why North Carolina’s General Assembly is taking steps to protect donor privacy.
At the heart of the conversation is Schedule B—a federal tax form nonprofits submit to the IRS that lists their major donors, grantors, and other partnerships. For decades, this information has been kept confidential for good reason: history has shown us what can happen when it’s not.
Take the Civil Rights era. In 1958, the US Supreme Court ruled in NAACP v. Alabama that the state couldn’t force the NAACP to reveal its member list. Why? Because doing so would have exposed members to threats, violence, and economic pressure, and violate their Freedom of Association rights. Fast forward to today, and the risks remain. Pro-life groups, LGBTQ+ organizations, and political advocacy nonprofits on all sides of the aisle have seen donors harassed or “doxed” after being outed.
This isn’t just theoretical. In Americans for Prosperity Foundation v. Bonta (2021), the US Supreme Court reaffirmed that compelled donor disclosure violates the First Amendment. The Court found California’s demand, made by then-state Attorney General Kamala Harris, for Schedule B donor information was not narrowly tailored and would chill free speech and association.
North Carolina lawmakers are now working to codify these protections in state law through Senate Bill 416 and the House budget. The House has incorporated the language of SB 416 directly into its version of the budget. As budget negotiations begin, the language is expected to remain intact, especially since the Senate passed SB 416 on May 8 and it is currently awaiting consideration in the House Rules Committee.
The proposed language doesn’t change existing law — which already protects donor privacy — but it adds teeth: civil penalties for government employees who attempt to pressure nonprofits into handing over their donor lists. Think of it as a necessary deterrent.
Critics on the left have called this a “dark money shield,” arguing that it hides big-money political donors from public scrutiny. But that’s a misunderstanding. This bill doesn’t affect campaign finance law or political action committees — it applies only to charitable nonprofits and their private donors, whose gifts are often tax-deductible, just like your medical expenses. And just as you wouldn’t want your medical history made publicly available, you shouldn’t be forced to disclose which causes you support.
North Carolina’s move is part of a broader trend to protect privacy in a digital age where information spreads instantly and consequences can be severe. Vetoing this kind of policy — like Governor Roy Cooper did in 2021 — risks turning legitimate charitable giving into a liability.
In today’s hyperconnected world, where information spreads in seconds and online outrage can erupt without warning, privacy rights have become more crucial than ever — especially when it comes to donating to nonprofit organizations. Individuals who support a cause, whether social, political, or religious, often do so out of deeply held personal beliefs. But in an environment where those beliefs can be weaponized, anonymity in charitable giving is not just a preference — it’s a protection.
At the end of the day, protecting donor privacy isn’t about shielding shadowy influences — it’s about safeguarding free speech, free association, and the right to support a cause without fear.