States have enacted more donor privacy and disclosure legislation this year than in recent years, with the number of enacted bills increasing yearly since 2020.
Donor privacy and disclosure policy refers to legislation or regulation governing the confidentiality of nonprofit donors’ identities and/or personal information. Tax-exempt nonprofits are regulated under Section 501 of the Internal Revenue Code. States can add their own nonprofit regulations.
Ten related bills have become law so far in 2023 (19% of introduced bills), compared to eight in 2022 (11%), seven in 2021 (18%), and four in 2020 (9%). The number of bills enacted in states with divided government also increased this year, as did the number of Republican-sponsored bills.