In May 2026, U.S. Senators James Lankford (R-OK) and Todd Young (R-IN) introduced the Protecting Charitable Giving Act, legislation aimed at strengthening federal protections for donor information and increasing penalties for the unauthorized disclosure of sensitive taxpayer data tied to nonprofit contributions.
The bill builds on a prior version introduced in May 2024 and reflects growing concern among lawmakers and advocacy groups regarding the confidentiality of donor identities. Nonprofit organizations, particularly those classified under Internal Revenue Code Sections 501(c)(3), rely heavily on charitable contributions to fund their services and charitable missions. Many of these contributions are made by individuals who prefer to remain anonymous.
Elevated Penalties for Unauthorized Disclosure
The proposed legislation amends Section 7213 of the Internal Revenue Code by adding a new subsection specifically addressing disclosures related to Form 990 Schedule B, which contains the names and addresses of significant donors.
Under current law, willful unauthorized disclosures carry penalties of up to $5,000. The proposed legislation would substantially increase those penalties, raising the range to between $10,000 and $250,000 per violation. Lawmakers say the heightened penalties are intended to act as a stronger deterrent against improper handling or release of confidential donor information.
Expanded Legal Venue and Enforcement Provisions
The bill also expands the venue options for prosecution. Cases involving the improper disclosure of donor information could be brought not only in jurisdictions already authorized by law but also in the judicial district where the victim resides. The definition of “victim” includes both the affected nonprofit organization and any donor whose information was disclosed.
In addition, the legislation enhances oversight by requiring the audits to be conducted and reports to be issued on any such unauthorized disclosures. These reports would outline investigative findings, recommend measures to prevent future incidents and be appropriately redacted to ensure no further confidential information is exposed.
Looking Ahead
As introduced, the Protecting Charitable Giving Act represents a targeted effort to strengthen enforcement mechanisms and reaffirm longstanding privacy protections within the tax code. By increasing penalties, expanding avenues for legal recourse and enhancing oversight, lawmakers aim to ensure that individuals can continue to support charitable organizations without fear their personal information will be disclosed.
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