Protecting Donor Privacy

February 22, 2016      Roger Craver

Efforts by the F.B.I. to compel Apple to break the encryption of the San Bernardino murderer’s iPhone is a stark reminder of the paradox faced by those living in a free society.

Because of the current fear and fixation with ‘terrorism, some will find it easy to justify making an exception to this effort at governmental intrusion.

And I’m sure a few nonprofit leaders and fundraisers will see the parallel between government’s attempt to crack a murderer’s iPhone and the resistance of Tim Cook, Apple’s CEO, to their attempt, and the efforts of some government officials to compel public disclosure of an organization’s donors.

The founders of the U.S. system of balancing government power and individual rights would not be one bit surprised.

They saw governmental power as having “an endlessly propulsive tendency to expand itself beyond legitimate boundaries,” as the historian Bernard Bailyn has written.

Bill of RightsAmerica’s founders had great faith in government, but used words like ‘encroachment’, ‘trespassing’, and ‘devouring’ to describe the character of even democratically derived power. That is why they set limits on governmental power, including legislative power: that’s what the American Bill of Rights is all about.

To those 18th century revolutionaries, ‘power’ was the domain of government. Rights were the domain of the governed.

And indeed the history of how enforceable rights have been secured in America — the right of women to vote, gay rights, ending racial segregation and abuse, the right to privacy, the rights to freedom of religion, freedom of speech and freedom of political association — reveals few if any instances in which government either prevailed in suppressing those rights, and even fewer examples where government actually led the way to establishing individual rights.

Instead, rights have been won after long and arduous struggles by citizens organized to demand the rights guaranteed by the Bill of Rights and the U.S. Constitution, but often resisted or subverted by government.

Which brings me to an ominous threat that is NOT making San Bernardino/Apple headlines, but should concern every one of us who cares about the freedom of the nonprofit sector and our donors.

I’m referring to recent efforts by state fundraising regulators and Attorneys General to compel nonprofits to turn over the names of their donors in return for granting organizations’ the right to solicit funds. (See Agitator post Urgent Alert to U.S. Nonprofits)

At stake is the concept of donor anonymity, the right of the individual to support even the most controversial and unpopular organizations and causes free of public exposure, ridicule and personal threats.

An example drawing significant attention involves efforts by Americans for Prosperity, a nonprofit that promotes limited government and market economics, to battle demands from the Attorneys General of California and New York compelling it to turn over a list of its major donors in order to be legally registered as a charity in those states.

It happens that two of its most prominent donors are Charles and David Koch, the billionaire brothers who finance conservative and libertarian causes and spend heavily to promote Republican candidates.

I’m no fan of what the Koch brothers stand for, having spent my life battling what they stand for politically. But, their nonprofit giving, according to the court filings by American for Prosperity, has subjected them to public threats and intimidation.

For details and a brilliant piece of reporting on this case, see Suzanne Perry’s piece in The Chronicle of Philanthropy.

According to Suzanne’s report:

“On Twitter: “Can someone assassinate [their] family already? What’s taking so long?” “Let’s drag [them] out and let the hangman do his deed so they can twist in the wind.” By email: “I hope both of them get cancer and suffer for years and then die.” “Please crawl back under whatever slime pit you crawled out of. I wish there was a ‘Hell’ in which you would burn for eternity.”

“Protesters have shown up at their houses and companies and hundreds surrounded the Washington Convention Center when the charity held a conference there in 2011, attempting to enter and accosting people as they left.”

And thus the importance of protecting donor anonymity and privacy. This time it’s the Koch brothers under attack and deserving of protection. But at other times it’s the risk of exposure and condemnation to donors to civil rights, gay rights and women’s rights causes. I remember well those ‘good old days’.

Frankly, I’m concerned at the silence of ‘my side’ — the liberal, progressive sides — that seem to forget the past or perhaps don’t want to stand up in defense of fundamental rights. Because this time it’s the Koch brothers. Shame!

Ultimately, this matter will be decided by the courts and The Agitator will keep you posted. But now is the time to speak up. Silence and a go-along-to-get-along with government and its regulators is the enemy of all our freedoms.

So, bravo for Tim Cook. And bravo for Americans for Prosperity.

Roger

P.S. Has your organization discussed or taken a stand on what it will do with your donor list when the government comes knocking.

 

 

 

One response to “Protecting Donor Privacy”

  1. Robert Tigner says:

    As Roger’s column suggests, the good guys lost an important round in federal court to California AG Kamala Harris. The victory there gave her the obligation to write regulations to protect the privacy of donors listed on the Schedules B that came into her office’s possession. The proposed rules were few, concluding with an item that promised confidentiality EXCEPT FOR WHEN OTHER CALIFORNIA STATE EMPLOYEES ASKED for a look-see (by issuing an “administrative subpoena” – practically speaking, nothing more than a note on agency letterhead).

    At some risk of being labeled a cynic, I must say that doesn’t sound to me like a proposal that embraces much, if any, concern for donor privacy. Last week, the AG withdrew that portion of the regulations in response to a slew of comments pointing out the obvious. Chronicle reports that Alliance for Justice was one of the negative commenters. Here’s hoping AFJ stays in the fray. As Roger says, there is plenty of room left for others.