NC’s New “Personal Privacy Protection Act” (SB 416) Shields Donor Identities From Government Eyes
New law protects the identities of people who donate to nonprofits, banning state and local agencies from demanding or releasing donor information except in narrow, court-approved situations
Holly Springs, NC, Dec. 9, 2025 — A new North Carolina law (SB 416) now protects the identities of people who donate to or support nonprofit organizations, everything from churches and civic clubs to charitable foundations and advocacy groups.
The Personal Privacy Protection Act, which became law on December 1st, prohibits state and local government agencies from demanding, collecting, or publicly releasing information that identifies a person as a donor, member, supporter, or volunteer of a nonprofit.
Supporters of the law say it builds stronger privacy protections and prevents public records requests from being used to expose or intimidate nonprofit donors. Agencies that violate the rules could face civil penalties and even misdemeanor charges.
What the Law Blocks
Under the new law, governments, from the State of North Carolina all the way down to local school districts and town departments, cannot:
Force nonprofits to hand over donor lists
Collect or release names of donors, members, volunteers, or supporters
Tell contractors they must disclose what nonprofits they give to or support
The law also clearly states that donor information is not a public record and therefore cannot be accessed through standard public records requests.
What Counts as Protected Information?
The definition is broad. If a document could identify someone as a:
Donor (financial or nonfinancial)
Supporter
Volunteer
Member
…it’s protected.
This applies to all kinds of nonprofit organizations, whether they’re already 501(c) certified, currently applying, or state-recognized as not-for-profit.
Are There Any Exceptions?
Yes, but they’re very limited.
Government agencies may access donor information only when:
A court issues a warrant
A court orders discovery in a lawsuit, with a required protective order
Election disclosure laws specifically require it
A nonprofit voluntarily releases the information publicly
Regulators need the information only for an audit or investigation and are barred from publicly releasing it
Courts also must avoid disclosing donor information unless there’s a specific finding of good cause.
What Happens if Government Breaks the Rules?
The law has teeth.
Violations can result in at least $2,500 in damages per incident
If the violation was intentional, damages may be tripled
Complainants may also recover attorney fees
Government employees who knowingly violate the law can be charged with a Class 2 misdemeanor
Why This Matters
For donors and nonprofits, the act provides reassurance that:
Support won’t be exposed through public records
Government agencies can’t pressure or intimidate donors
Sensitive donor information stays private unless a court steps in for truly compelling reasons
For government agencies, the act changes what can be collected and released, and violations carry significant consequences.
Bottom Line
The Personal Privacy Protection Act establishes a blanket rule:
Government agencies must keep donor identities confidential, and they cannot request them.
The law (SB 416) is now in effect statewide for all nonprofits and their supporters.
Fantastic breakdown of SB 416. The bit about how governments cant even tell contractors to disclose nonprofit support is pretty interesting becuz it closes a loophole most privacy laws miss. One thing I'm curious about tho is whether this creates any tension with campaign finace transparency, especially for 501c4s that do political work but arent subject to the same disclosure rules as PACs.
Thanks for sharing this information