A bill moving forward in New Mexico threatens to impose new, unwarranted donor disclosure rules on nonprofits that engage in issue advocacy. The bill, S.B. 85, builds upon an existing law that already imposes broad reporting mandates on nonprofits that engage in issue advocacy near elections.
But with one word change, replacing the term “contributions” with “donations,” S.B. 85 makes it clear that even donors who have no intent to support political activity would still have their information publicly disclosed.
This change threatens to discourage charitable giving and limit the ability of nonprofits to engage in issue advocacy. The Rio Grande Foundation is currently challenging the constitutionality of the existing law, saying it is overbroad and infringes on free speech.
Beyond its possible constitutional infringement, S.B. 85 could have a chilling effect on free speech, as it forces nonprofits to choose between speaking out on key policy issues and protecting their donors’ privacy. The bill’s broad scope means that donors to organizations addressing public policy—whether on education, health care or economic development—could find their names listed in public records, even if they never intended to fund that messaging.
This kind of “junk disclosure” misrepresents donor intent and could lead to retaliation or harassment, particularly in today’s politically charged environment. Similar proposals have been introduced in New Mexico in previous years, reflecting an ongoing effort to expand government oversight of nonprofit advocacy. However, these efforts undermine the essential role nonprofits play in fostering civic engagement and informing public discourse.
S.B. 85 not only raises serious privacy concerns but also exacerbates legal uncertainties. If the Rio Grande Foundation prevails in its lawsuit against the existing law, this new proposal would be even more constitutionally questionable. Courts have consistently ruled in favor of donor privacy, recognizing that disclosure requirements must be narrowly tailored to serve a compelling government interest.
By expanding the scope of reportable donations beyond political contributions, S.B. 85 appears designed to intimidate donors and discourage nonprofits from participating in policy discussions. Instead of fostering transparency, the bill would create unnecessary legal battles and further burden organizations that seek to engage the public in important policy debates.
Individuals associating together through nonprofits serve as vital voices in society, advocating for issues that impact communities across New Mexico. Restrictive laws like S.B. 85 create a precedent that could harm the broader philanthropic sector by discouraging individuals from supporting causes they believe in. Protecting donor privacy is essential to maintaining a thriving nonprofit sector where organizations can speak freely without fear of government retaliation. Lawmakers should reconsider the unintended consequences of S.B. 85 and work to ensure that nonprofits can continue their critical work without unnecessary legal and financial obstacles.
The Roundtable continues to monitor similar bills across the country that threaten donor privacy.
