New Hampshire poised to limit nonprofit disclosures

Supporters say the intent of the proposal is to allow donors in the state to give to charities confidentially, which they argue will mean better outcomes for nonprofit groups.
The bill’s sponsor, Sen. William Gaggnon, R-Sandown, says that the lack of protections for the disclosure of donor information has had “a chilling effect” on charitable campaigns.

By Christian Wade | The Center Square

New Hampshire lawmakers are moving to set limits on the state government from releasing details of nonprofit groups and their donors to the public.

A proposal, which was given final approval this week by the House and Senate leaders, would prevent government agencies from releasing any information that “directly or indirectly identifies a person as a member, supporter, volunteer, or donor of financial or nonfinancial support.”

The legislation is now headed to Gov. Chris Sununu’s desk for consideration. Last-minute changes to the bill, in response to concerns voiced by the state attorney general’s office, will provide state agencies that review financial information provided by charities with more access to donor files. The legislative compromise helped ensure the bill’s final passage.

Supporters say the intent of the proposal is to allow donors in the state to give to charities confidentially, which they argue will mean better outcomes for nonprofit groups.

The bill’s sponsor, Sen. William Gaggnon, R-Sandown, says that the lack of protections for the disclosure of donor information has had “a chilling effect” on charitable campaigns.

“Donors may wish to remain anonymous due to religious beliefs, a desire to avoid unwanted solicitation, an inclination to keep the spotlight off themselves, or fear of reprisals for giving to certain groups,” he said in recent testimony.

The proposal exempts gifts for lawmakers and legislative employees, lobbyists and financial disclosures as well as political expenditures and contributions.

It would allow nonprofits to sue local governments that violate the restrictions on donor disclosures, with fines ranging from $2,500 to 7,500 for an “intentional” violation.

The measure is backed by American Civil Liberties Union of New Hampshire and Americans for Prosperity, a conservative group, both which say it would improve privacy protections.

But the plan faced resistance from Attorney General John Formella, who argued that it would compromise investigations into criminal activity involving charities.

“This bill would mean less transparency in the governance of charitable organizations and will make it more difficult for our office to fulfill our oversight responsibilities so that donors can have more confidence that their donations are used for their intended purposes,” Diane Murphy Quinlan, assistant director of the AG office’s Charitable Trusts Unit, said in recent testimony.

Groups that work to promote transparency in government also oppose the plan, arguing that the bill would still allow some donors to shield campaign contributions to local politicians.

A fiscal note attached to the bill said it would likely add to new criminal and civil cases before the state’s courts, but couldn’t determine exactly how much that would cost.

One thought on “New Hampshire poised to limit nonprofit disclosures

  1. “This bill would mean less transparency in the governance of charitable organizations and will make it more difficult for our office to fulfill our oversight responsibilities so that donors can have more confidence that their donations are used for their intended purposes,” Diane Murphy Quinlan, assistant director of the AG office’s Charitable Trusts Unit, said in recent testimony.

    So does that mean it will take even longer to uncover things like say for instance a certain charity bought several multi-million $ homes and also paid out million $ salaries from member donations?

    What was the NH AG office’s Charitable Trusts Unit awareness of the BLM shenanigans?

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