Senate Bill 416, titled the Personal Privacy Protection Act, cleared both chambers of the General Assembly — passing 63–46 in the House on Wednesday and 32–15 in the Senate in May. After a quick Senate concurrence vote to approve minor changes made in the House version, the bill now sits on the desk of Gov. Josh Stein for consideration.
If signed into law, the bill would codify existing laws against state and local government agencies from collecting, disclosing, or requiring the disclosure of personal information that identifies a person’s association with or support for a nonprofit organization. The bill adds civil penalties for government employees who try to compel nonprofits to disclose donor lists. Supporters argue it would safeguard freedom of association and expression, reinforcing constitutional rights for North Carolinians who support causes privately.
According to the bill text, “a public agency shall not require any entity organized under Section 501(c) of the Internal Revenue Code to provide the public agency with personal information,” except when such disclosure is mandated by federal law, a subpoena, or a court order.
The bill also restricts public agencies from releasing donor-related information through public records requests or inadvertently, helping prevent breaches of confidentiality.
While critics of the bill have raised concerns about its potential impact on transparency — especially for nonprofits involved in political advocacy — the legislation maintains all existing campaign-finance disclosure requirements under state and federal law. It does not affect reporting obligations to the IRS or the State Board of Elections.
a long history of speech suppression
The legal and cultural foundation for donor privacy in the United States dates back to the civil rights era. In the landmark 1958 case NAACP v. Alabama, the US Supreme Court ruled that the state of Alabama could not compel the NAACP to disclose its membership lists. The court found that such disclosure would expose members and donors to harassment, threats, and violence, thereby violating their First Amendment rights to free speech and association.
This ruling established a critical precedent: Private support for controversial or minority causes deserves constitutional protection from compelled government disclosure.
More recently, donor privacy gained renewed legal standing in the 2021 US Supreme Court decision Americans for Prosperity Foundation v. Bonta. Under a California policy first enforced by then-Attorney General Kamala Harris, nonprofits were required to submit their donor lists to the state. Two nonprofit organizations — Americans for Prosperity Foundation and the Thomas More Law Center — challenged the requirement, arguing it chilled donor participation and posed serious risks of exposure.
In a 6–3 decision, the Supreme Court struck down California’s policy, finding it unconstitutional under the First Amendment. Writing for the majority, Chief Justice John Roberts stated that “widespread disclosure of donor information is hardly necessary” for regulatory oversight and that the policy placed a heavy burden on individuals’ freedom to support causes anonymously.
The court ruled that any government-imposed donor disclosure must be narrowly tailored and serve a compelling interest. California, it found, failed to prove that its broad donor reporting requirement was necessary or effective.
Relevance to Senate Bill 416 in North Carolina
Bill sponsors say the historical and legal context directly informs the language and intent behind Senate Bill 416, ensuring that North Carolina public agencies cannot compel or disclose nonprofit donor information except under specific, lawful circumstances.
Supporters of the legislation, including the John Locke Foundation, emphasize that it is not about concealing “dark money,” but about honoring civil liberties and protecting individuals from political intimidation based on their private charitable giving.
Stein, a Democrat with close ties to former Gov. Roy Cooper, has not specifically indicated whether he will sign, veto, or allow the bill to become law without his signature. However, Cooper vetoed a similar bill , SB 636, in 2021.
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