Protecting Charitable Giving Act
The Protecting Charitable Giving Act would amend the Internal Revenue Code to strengthen penalties for unauthorized disclosure of donor information reported on Form 990 Schedule B. The bill targets return information tied to certain tax-exempt organizations, specifically 501(c)(3) organizations other than private foundations and 501(c)(4) organizations, when that information includes contributor names or addresses. It increases the criminal penalty range for covered disclosures from a maximum of $5,000 to a range of not less than $10,000 and not more than $250,000.
The bill also expands venue rules for prosecutions involving these disclosures, allowing cases to be brought in the district where a victim resides, with residency defined for individuals by domicile and for organizations by principal place of business. It defines “victim” to include both the affected organization and certain contributors whose information was disclosed. In addition, the bill directs the Treasury Inspector General for Tax Administration to issue a report after any covered disclosure, describing audit results and recommending steps to prevent future incidents, while redacting protected tax return information.
Overall, the bill is designed to deter leaks of donor identities and reinforce confidentiality protections for charitable giving. Its practical effect would be to create stronger criminal consequences for unauthorized disclosures and to require formal oversight and reporting when such breaches occur. The amendments would apply only to disclosures made after enactment.
The available context shows little recorded debate or voting history, so the general sentiment appears to be supportive or at least noncontroversial at introduction, with the bill being referred to the Senate Finance Committee. The title and structure suggest a policy focus on protecting donor privacy and encouraging charitable contributions by reducing the risk that contributor information will be exposed.
The main point of contention likely concerns the balance between donor privacy and transparency, especially because the bill covers donor information for both charitable and social welfare organizations. Supporters are likely to emphasize privacy, deterrence, and protection of charitable giving, while critics may worry that stronger penalties and broader venue provisions could complicate enforcement or limit public access to information about tax-exempt organizations.
The bill would amend sections 7213 and 7803 of the Internal Revenue Code. It would increase criminal penalties for unauthorized disclosure of Form 990 Schedule B contributor information, expand where prosecutions may be brought, and require TIGTA to issue redacted reports on such disclosures and prevention measures. The affected parties are IRS personnel or others subject to tax return confidentiality rules, tax-exempt organizations described in sections 501(c)(3) and 501(c)(4), and their contributors whose names or addresses appear in the protected information.
There is no recorded committee transcript or vote history in the provided material, so sentiment can only be inferred from the bill’s introduction and referral. The bill appears to have been presented as a privacy-protection measure with a clear pro-charity framing, suggesting generally favorable treatment at introduction. No opposition is documented in the provided context.
The likely policy tension is between protecting donor confidentiality and preserving transparency around tax-exempt organizations. Supporters would favor stronger penalties to prevent leaks of contributor identities and to reassure donors that their information will remain private. Potential critics may question whether the bill’s expanded penalties, venue provisions, and reporting requirements could create enforcement complexity or reduce accountability by making donor information harder to scrutinize.