Legal Law

Nonprofit Donors and Privacy, The Dirty Secret

In 1999, the CEO of Sun Microsystems said, “You have zero privacy…Get over it.” In 2010, Mark Zuckerberg declared that privacy was dead. I think Zuckerberg must feel a certain irony about what he has experienced this year regarding privacy and the transfer of user information from Facebook to Cambridge Analytica. I think it’s fair to say that this year, privacy has been a hot topic.

I’m not sure where things will ultimately end, and it’s very likely that privacy as we knew it has indeed ended. In fact, I think that may already be the case, but there is a clear tension between privacy and sharing. We continue to willingly share our information on social media platforms and browsers, like Google, continue to track us all over the Internet.

And, despite the General Data Protection Regulation, which has been enacted in Europe but also affects US companies and non-profits, you’ve probably already noticed that corporate lawyers have already figured out how to get around it. For the most part, you agree to tracking, or whatever else they have explained in their Terms of Service, or you will not be able to use the platforms that will provide you with the news, allow you to shop, or be entertained. That went well.

donor privacy

The dirty little secret in the nonprofit sector is that many nonprofits have donor information, including volunteers and supporters, but have not taken the necessary steps to ensure that information is not stolen. They also don’t take the time to tell people how their data is being used, which is something everyone with a website should do. Nonprofits have information like names, addresses, emails, dates of birth, credit cards, social security numbers (especially those organizations that have volunteers who go through background checks), phone numbers, etc. It doesn’t take a genius to see how this information can be used in inappropriate ways.

In fact, a colleague of mine who worked in the nonprofit sector as a fundraising consultant told me not long ago that when she brought up the topic of privacy, many nonprofit leaders told her they didn’t know that the privacy of donors is a priority for donors They have expressed support for transparent public privacy policies, but had no idea that they should have donor terms of service or privacy policies that are easily accessible on their websites, e.g. example, to explain what they do with the data. I honestly don’t know how that can be a credible thought in today’s world.

Data and nonprofits

Most donors should know or understand that when they provide their information to a nonprofit organization, there is a chance that their name and information may be sold. Some nonprofits do this as a matter of revenue because they make money off the names and data they sell to brokers. If you work for one of the many organizations that sell donor data to intermediaries, such as an Ethics and Integrity Point, you should clearly state that information to donors in your donor policy information.

Also, in recent years, criminals have become aware of the fact that non-profit organizations can be a wealth of information and it can be reasonably easy for them to open the “safe”. And, to make things even more concerning for nonprofit donors, there have been cases where donor information has been criminally compromised and it has been decided not to make the information public for fear that the donations ran out.

Data Protection

Nonprofits hold a unique position in our society and often come with tax-exempt status, primarily because of the work they do to improve the lives of people in a community. Because of this, nonprofits must provide some minimum reporting standards to ensure they are operating with integrity and ethics when accepting information from donors and volunteers.

  • They can remind people who enter their identifying information on their websites to remember to delete web “cookies,” which are files stored on a person’s computer that are linked to the site visited. Deleting this information will remove any remaining names, addresses, credit card information, etc. from the web
  • Nonprofits must create and post a “Donor Privacy Policy” that tells donors how donor and supporter information will be used. Charity Navigator provides a simple example.
  • Post “Terms of Service”. Take a look at examples of leading nonprofits. You can also see an example from the National Council of Nonprofit Organizations or TopNonprofits.

The reality is that every nonprofit, regardless of size, should have a donor privacy policy and terms of service that can be quickly reviewed on their website. If your organization doesn’t have the basics done, there’s no reason you should expect people to support your group. There are likely many charities that demonstrate transparency and should be rewarded with fundraising dollars.

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