This week, a legislative committee in Maine considered a donor disclosure bill masquerading as a campaign finance transparency measure. The bill, LD 951, would impact any nonprofit that engages in issue advocacy by mandating extensive disclosure of funding sources.
This bill would require a nonprofit taking a stand on a policy measure to not only report their donors, but their donors’ donors, much like a recently enacted law in Arizona, which is currently being litigated in both federal and state court. Arizona’s Voters’ Right to Know Act, also known as Proposition 211, continues to be problematic for sowing confusion and raising alarms over donor anonymity.
The Arizona law has proven to be a significant administrative burden on nonprofits, and it would likely be no different for Maine nonprofits. As highlighted in a People United for Privacy blog, excessive disclosure laws not only deter lawful political participation but also create bureaucratic hurdles that make compliance costly and complex. Such mandates could result in private citizens and nonprofit donors being caught in a web of invasive financial scrutiny, discouraging charitable giving.
The bill does have an opt-out option for contributors. But if the contributor chooses not to opt-out, then any donor, including their donors’ donors, giving more than $2,500 must be disclosed, even if they don’t know the money may be used to influence a ballot measure initiative.
While transparency in political contributions is important, LD 951 takes disclosure requirements too far, particularly by compelling donors who contribute over $10,000 to reveal their identities. Such provisions could have a chilling effect on civic engagement, discouraging individuals from supporting causes they believe in due to fear of public exposure and retaliation.
Maine previously considered similar legislation in the 2023-2024 legislative cycle, which ultimately failed due in large part to push back from local nonprofit organizations. They were concerned about unintended consequences of the bill such as free speech infringement and harassment of their donors. If enacted, LD 951 could set a dangerous precedent that undermines donor privacy and limits free association.
The potential for hefty penalties—up to $20,000—further exacerbates concerns by creating an atmosphere of fear and self-censorship. Instead of promoting fairness, the bill risks stifling voluntary association and silencing voices from participating in the democratic process. Maine lawmakers should reconsider the consequences of this legislation and seek a balanced approach that upholds political transparency without eroding the fundamental right to privacy in charitable giving.
