Attorney General Brenna Bird has announced that she is leading a group of 18 states in challenging an Internal Revenue Service (IRS) rule requiring federally recognized charities to report their major donors each year. The coalition argues that this mandate threatens donor privacy and infringes on First Amendment rights.
Between 2010 and 2022, there have been over a dozen incidents where donor lists submitted to the IRS were hacked or leaked, exposing sensitive information about contributors. This history of data breaches has raised concerns about the safety of donor identities.
The Buckeye Institute filed a lawsuit against the IRS in 2022, aiming to protect its donors’ rights to free association and privacy. A decision favoring the Institute could set a precedent allowing individuals in Iowa and elsewhere to contribute to religious or charitable organizations without fear that their personal information will be made public.
While acknowledging that there are circumstances where the IRS may need access to donor information—such as when investigating possible fraud—the coalition asserts that such requests should only occur when there is specific suspicion of wrongdoing. This approach aligns with current practices among all 50 states, which only seek donor details during investigations into charities.
The legal brief submitted by Iowa and the other participating states supports keeping nonprofit donor lists confidential unless misconduct is suspected. It also advocates for maintaining state-level oversight rather than expanding federal control.
“Iowans should have the ability to donate to and associate with organizations of their choice without fear of having their privacy exploited or their first amendment protections undermined,” said Attorney General Bird. “We’re asking the Court to stop this overreach and rule in favor of The Buckeye Institute.”
Attorneys general from Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Kentucky, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, and West Virginia joined Iowa’s brief.
