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Position paper: The University of Iowa Foundation and donor privacy legislation Regarding HF2706, passed unanimously in both the Iowa House and Senate on May 3, 2006
Posted February 24, 2006 The Iowa Supreme Court’s recent interpretation of Iowa’s open records law in a case involving a university foundation (Gannon and Nichols v. Board of Regents et al.) leaves unresolved questions about public disclosure of personal and private donor information. Benefactors to Iowa charities that support governmental agencies (e.g., foundations that support schools, universities, libraries, hospitals, etc.) are concerned about their personal financial information being available through a public information request. Applying Iowa’s open records law -- Chapter 22 of the Iowa Code -- to nonprofit organizations that raise private gift dollars in support of government agencies makes good sense. The public has a right to be assured that these nonprofit organizations are as open and accountable as the public agencies they serve. However, Chapter 22 was not enacted specifically with private contributors in mind. Iowa’s open records law contains no direct donor-privacy protections covering contributors’ financial or estate planning information, data regarding an individual’s financial circumstances or specific personal financial information, or other documents and details that most donors would consider to be highly and rightfully confidential. To remedy this shortcoming in Chapter 22, and to assure that Iowa remains as donor-friendly as other states -- particularly when private dollars are more important to our public institutions than ever before -- The University of Iowa Foundation (UIF) is acting on behalf of our contributors and seeking to add limited donor privacy protections to Chapter 22. The lack of such protections puts Iowa nonprofits at a disadvantage when competing for donors who can direct their support to similar charities in states with donor-privacy laws in place. Our aim is to protect our donors, not to protect the business records of this foundation or any other nonprofit organization that raises funds for the benefit of government agencies and the people of Iowa. We believe in and fully support the “openness” guaranteed by Chapter 22. We also believe, however, that our donors and donors to other Iowa nonprofits are entitled to have their personal and private financial records and other giving-related information handled with respect and confidentiality, especially in an era when privacy protections and identity theft are serious national concerns. In addition, we seek to assure our donors’ right to anonymity, a basic and time-honored tenet of American philanthropy. Although relatively few in number, benefactors who choose to make their gifts anonymously ask to do so for many legitimate reasons. (In agreement, the Iowa General Assembly in 2005 passed anonymity-related legislation for public school foundations (House file 882): “Such an entity or organization shall maintain its records in accordance with Chapter 22, except that the entity organization shall provide for the anonymity of a donor at the written request of the donor.”) We believe that a legislative remedy is the best means of achieving a reasonable balance between the public’s right to know and our contributors’ rights to confidentiality, with the ultimate goal of maintaining in the state of Iowa a healthy, open, and welcoming climate for private philanthropy. Contact Information
Susan Shullaw Additional information about supporting UI colleges and programs also is available on this site. |