This bill increases penalties and mandates reporting for the unauthorized disclosure of donor information from certain tax-exempt organizations' Schedule B filings.
Todd Young
Senator
IN
The Protecting Charitable Giving Act significantly increases penalties for the unauthorized disclosure of donor information from certain tax-exempt organizations, specifically targeting Schedule B information on Form 990. This legislation also mandates that the Treasury Inspector General for Tax Administration audit and report on any such improper disclosures. The goal is to enhance the privacy and security of charitable contributors' personal data.
New Bill Hikes Fines for Leaking Donor Info to $250K, Expands Prosecution Options
Ever wonder who’s donating to those big non-profits? Well, a new piece of proposed legislation, the Protecting Charitable Giving Act, is looking to put a serious chill on anyone who might be tempted to spill the beans on donor lists. This bill dramatically increases the penalties for unauthorized disclosure of donor information, specifically targeting the names and addresses found on what’s called "Form 990 Schedule B" for certain charitable and social welfare organizations.
Keeping Donor Lists Under Wraps
At its core, this bill is all about beefing up privacy for donors to 501(c)(3) charities (think your typical Red Cross or local food bank) and 501(c)(4) social welfare groups (like some advocacy organizations). Right now, if someone unauthorized leaks that donor information, the maximum fine is $5,000. This new bill would crank that up, making the penalty not less than $10,000 and up to a whopping $250,000 for each unauthorized disclosure. So, if you’re thinking about sharing who gave what to your favorite cause, the price tag for getting caught just went way up. This change applies to any leaks happening after the bill becomes law.
Where You Can Get Sued (or Prosecuted)
Beyond just upping the financial ante, the Protecting Charitable Giving Act also clarifies where a criminal case for these unauthorized disclosures can be brought. Previously, it might have been a bit fuzzy, but now, a prosecution can happen either in the judicial district where a "victim" lives or any other district that usually has jurisdiction. And here's the kicker: a "victim" isn't just the organization whose list got leaked; it also includes any individual donor whose information was disclosed. For an individual, that means where they're officially domiciled; for an organization, it's where their main office is. This expanded definition and venue options could make it easier to prosecute these cases, but it also means someone accused could potentially face charges far from where they live or work.
Uncle Sam Wants a Report on Leaks
It’s not just about punishment; this bill also aims for prevention. It requires the Treasury Inspector General for Tax Administration (TIGTA) to step in whenever a Schedule B of Form 990 is improperly disclosed. TIGTA will have to conduct an audit, figure out what went wrong, and then issue a report. This report isn't just for show; it needs to recommend concrete steps to stop similar leaks from happening again. Of course, they’ll redact any confidential information to protect privacy, but the idea is to create a clearer record and push for better security practices. For everyday folks, this means the government is trying to put more checks and balances in place to keep donor information secure, which could be a good thing if you’re someone who values your privacy when making charitable contributions.