Luke Wachob, an advocate with People United for Privacy, discusses the growing threats to donor privacy, emphasizing the politically motivated challenges facing contributors. He highlights recent legal battles, such as Arizona's Voter's Right to Know Act, that complicate nonprofit advocacy. The conversation reveals a troubling decline in small donor contributions, raising concerns for local charities. Wachob also delves into the implications of legislative ambiguities on charitable giving and the overarching risks to individual freedoms and privacy.
Recent political shifts, like California's donor disclosure requirement, threaten donor privacy and conflict with Supreme Court precedents protecting free speech.
The decline in small donor contributions highlights a shift towards larger gifts, jeopardizing grassroots organizations and fostering a culture where philanthropic support appears exclusive to the wealthy.
Deep dives
Threats to Donor Privacy and Charitable Giving
New threats to donor privacy and tax benefits for charitable giving have emerged, particularly following recent political shifts. The discussion highlights the aggressive campaign led by Kamala Harris in California, where nonprofits were compelled to disclose donor lists, directly contradicting the Supreme Court's unanimous ruling that recognized the First Amendment rights of organizations like the NAACP during the civil rights movement. The case of AFPF v. Bonta is crucial, as it aimed to protect donor privacy across the nation, pushing back against such intrusive demands. Despite the ruling, there remains skepticism about widespread compliance from state governments, as historical precedence shows that regulatory actions can persist even after judicial victories.
Voter's Right to Know Act and Its Implications
In Arizona, the passage of the Voter's Right to Know Act poses substantial risks for nonprofits by expanding the definition of campaign media spending, compelling organizations to disclose sensitive information. This convoluted law is ambiguous, granting significant discretion to regulatory authorities, complicating compliance for nonprofits involved in advocacy. Many organizations are experiencing uncertainty about potential legal violations, leading to a chilling effect on free speech and public discourse. The fear is that even minor appearances of political involvement could trigger scrutiny and jeopardize the privacy of donors, creating an environment of caution among those wanting to contribute to causes they support.
Decline in Small Donor Contributions
The discussion emphasizes a concerning trend of diminishing contributions from small and medium-sized donors, highlighting the shift towards larger philanthropic gifts which do not support local charities. Although overall charitable giving has increased in dollar terms, the participation of everyday donors is declining, threatening the sustainability of grassroots organizations. Many argue that increased scrutiny on philanthropy misrepresents it as being exclusively for the wealthy, deterring smaller contributions. This shift not only weakens community organizations but also raises questions about the future of charitable giving, emphasizing the need to protect donor privacy and encourage a culture of philanthropy based on individual generosity.
Whether you're a generous supporter of the Cato Institute or any other nonprofit, make no mistake: Threats to donor privacy and tax-advantaged giving are still out there, and are largely politically motivated. Luke Wachob and Peter Lipsett explain.
