Philanthropy Magazine: The Legal and Political Landscape of Donor Privacy (In the News)

Philanthropy Magazine: The Legal and Political Landscape of Donor Privacy

By Sean Parnell

A 2014 lawsuit challenging the California attorney general’s demands, filed by the Center for Competitive Politics, argued that mandatory donor disclosure violates the First Amendment. Several additional 501c3 nonprofit organizations, including The Philanthropy Roundtable, filed amicus briefs in support of CCP’s petition…

Unfortunately, the way campaign finance laws are written they often encompass speech by charities related to issues, not candidates or elections. This is exactly what happened to the Independence Institute, a Colorado-based think tank organized under section 501c3 of the federal tax code and thus prohibited from intervening in elections. In 2014 it wanted to pay for radio advertisements encouraging Coloradoans to contact their two U.S. senators and urge them to support criminal-justice reforms, something well within the scope of proper activity for a charity.

But because one of the state’s two senators was running for re-election at the time, the Independence Institute would have been forced to reveal its major donors if it had run the ads within 60 days of the election. It decided not to run the ads and sued to challenge the application of campaign finance law to organizations that cannot legally engage in election campaigns. 

The Center for Competitive Politics is now the Institute for Free Speech.