The Internal Revenue Service’s rule requiring nonprofit groups to disclose their donors is facing a legal challenge following the Supreme Court’s ruling last year that a state law requiring charities to identify their donors ran afoul of the First Amendment.
“There are a lot of groups not comfortable about giving this information over,” said David Keating, president of the Institute for Free Speech, a group that filed the lawsuit on behalf of the Buckeye Institute, a free-market think tank.
His lawsuit argues that the IRS has already recognized that privacy issues were at stake in the collection of personal information of donors.