North Carolina’s New Personal Privacy Protection Act: What Nonprofits Need to Know

By: Joelle Harvill
Licensed Attorney in Michigan, North Carolina, and Tennessee

Starting December 1, 2025, a new North Carolina law gives nonprofits stronger tools to protect their supporters’ privacy. Known as the Personal Privacy Protection Act (Session Law 2025-79), this law is now part of Chapter 55A, the state’s Nonprofit Corporation Act.

Why This Law Matters

This legislation was inspired by a landmark 2021 U.S. Supreme Court case, Americans for Prosperity Foundation v. Bonta, which found that requiring nonprofits to hand over donor lists violated the First Amendment right to free association. The Court recognized that forcing disclosure of supporter information could expose donors to unwanted attention or discourage charitable giving altogether.

North Carolina’s new law builds on that principle, ensuring individuals can support causes they care about—whether arts, education, health, or community services—without fear that their personal information will be released by government agencies.

What the Law Does

The Personal Privacy Protection Act prohibits state and local government agencies
from:

1. Demanding donor lists from nonprofits or individuals
2. Publicly releasing names, addresses, or other information about donors,
   members, or volunteers
3. Requiring donor disclosure as a condition of getting grants or contracts

In short, your donor information is now legally protected and cannot be treated as a public

How This Helps Your Nonprofit

Stronger donor trust: Supporters can give with confidence knowing their information stays private.
Reduced compliance burden: You can refuse improper requests for donor data without legal risk.
Legal protection: The law includes penalties for violations—up to $2,500 per incident plus legal fees—and even criminal charges for intentional breaches.

When Disclosure Is Allowed

• The law includes narrow exceptions for specific legal situations: Court orders requiring donor information with strict confidentiality protections
• Campaign finance reports required by state or federal election law
• Voluntary public releases when you or the donor choose to share information
• Basic corporate filings listing officers and directors (not donors)
• Government audits by the Attorney General or Secretary of State under specific legal authority, where the information must remain confidential

What Disclosures Are Prohibited

• Releasing or publishing donor names or addresses without consent.
• Requiring disclosure of donor lists for licensing, contracting, or compliance purposes.
• Providing donor data to public agencies or third parties unless legally obligated.

IRS Donor Disclosure Requirements (Federal Law)

Under IRS rules, most tax-exempt nonprofits must submit donor information to the IRS only—not to the public.

• 501(c)(3) and 527 organizations must report names, addresses, and amounts of contributions over $5,000 on Form 990, Schedule B.
• This data is not public except for private foundations and 527 political organizations.
• 501(c)(4) and (6) entities no longer need to report donor names to the IRS but must keep complete internal records for audit purposes.

No federal rule requires you to publicly disclose donor names.

Action Steps for Your Organization

1. Get donor consent for public recognition

Before listing supporters in programs, or on your website, ask for written permission. Offer an “anonymous” option for those who prefer privacy. Never include addresses,
email contacts, or donation amounts.

2. Adopt a clear Donor Privacy Policy that conveys

Create or revise your policy to explain that:

• Donor information is confidential and will not be shared, sold, or traded without consent.
• Public recognition appears only with explicit donor approval.
• Procedures exist for donors to opt out or change preferences.

Posting this policy on your website and donation forms reinforces trust and demonstrates compliance.

3. Know how to respond to requests

If a government agency asks for donor information, verify the request is legally required before sharing anything. When in doubt, consult legal counsel.

In short: North Carolina’s new donor privacy law strengthens the relationship between nonprofits and their supporters. By updating your policies, training your team, and practicing transparent consent-based recognition, you’ll not only comply with the law—you’ll build deeper trust with the people who make your mission possible.

Law Citation: G.S. 55A-18 (North Carolina Nonprofit Corporation Act)
Download Session Law: 2025-79