May 2011
To Protect Donor Privacy
As state think tanks become more successful, you can expect more media and other inquiries as to who supports your organization. However, 501(c)3 public charities are not required to publicly disclose donor information.
For a variety of very good reasons, many people wish for their contributions to remain private. Thus, it is important to have a written policy in place that respects donors' desire for anonymity, if that be their wish, and make sure your entire staff is familiar with the guidelines and abides by them.
Conversely, SPN's vice president for development Daniel Erspamer points out, "Certainly there are plenty of donors who wish to have privacy. Many don't care, and would be happy to have their names associated with your work. Too often, in my opinion, we make that decision for our donors. There are many good fundraising reasons to trumpet support from a donor - both in publicly acknowledging the donor's gift and in encouraging other donors to jump on board - be it naming opportunities, press releases, annual reports and so forth. That said, I think it's important we ask donors whether they wish to remain anonymous or not before we decide for them."
The question looms: What is your response to media or other inquiries about who your organization's supporters are, as well as attacks on your policy to protect their right to privacy? Here is a sample paragraph response:
We have (hundreds / thousands) of committed supporters across the (state / country) who share our belief in freedom and free enterprise. Though they are free to announce their support of our work - and many of them do - we respect our donors' privacy and have a policy to not comment to the press about any donor specifically. We welcome support from a broad range of individuals, businesses and charitable foundations that share our values and are willing to back up those beliefs with a generous commitment of their time, talent or treasure. I can't thank them enough for the support they provide to advance our mission.
Below are three short articles that lay out the ethical, political and practical case for protecting a donor's privacy. Beyond the articles, SPN offers guidelines designed to help you: honor a donor's request for anonymity; educate yourself concerning relevant law, and navigate questions from reporters. The guidelines provide links to other public charities' disclosure policies. To receive these guidelines, write Laurel Tacoma at tacoma@spn.org.
"Honor Donor Intent and Anonymity"
By Whitney L. Ball
President & CEO, DonorsTrust
Ball deems donor anonymity as being one aspect of donor intent. She offers reasons why some donors prefer that their contribution remain anonymous; encourages groups to develop privacy policies and educate their staff about them; and advocates that such policies be posted on the organization's website. Ball also touches upon Schedule B of federal Form 990, where gifts above two percent of annual revenue are reported, but are not publicly disclosed.
"How Donor Disclosure Hurts Democracy"
By James L. Huffman
Prof. of law, Lewis & Clark Law School; U.S. Senate candidate, 2010
The Wall Street Journal, May 11, 2011
Huffman's commentary highlights how potential contributors to his U.S. Senate campaign were skittish about giving due to the possible repercussions of doing so. The points Huffman makes are relevant to why a think tank - and society - benefit from protecting the privacy of supporters.
"John Podesta, Shepherd of a Government in Exile"
By Charlie Savage
The New York Times, Nov. 6, 2008
Savage reports that the Center for American Progress operates "in the constellation of Washington ‘think tanks,'" and amounts "to a government in exile for liberal policy experts." Savage writes, the Center "does not disclose who finances its activities, a policy it is declining to change even as Mr. Podesta prepares to wield influence over the shape of the Obama administration." The Center's senior vice president for communications, Jennifer M. Palmieri, states, "Some donors choose to make public what they are giving us, but others don't, and we respect that."
