Supreme Court Rules 9-0 on Nonprofit Donor Privacy

What happened:  On April 29, the U.S. Supreme Court issued a unanimous decision in First Choice Women’s Resource Centers, Inc. v. Davenport, holding that a state subpoena demanding private donor information from a nonprofit constitutes a present injury to the organization’s First Amendment right of association — and that the nonprofit may challenge that subpoena in federal court immediately, without waiting for a state court to enforce it. Justice Gorsuch, writing for a unanimous court, held that the mere issuance of a donor disclosure demand discourages donors from associating with the group and pressures the organization to curtail disfavored advocacy.

The background:  The New Jersey Attorney General opened a consumer fraud investigation into First Choice Women’s Resource Centers, a nonprofit crisis pregnancy center, and issued a subpoena demanding 28 categories of documents — including the names, phone numbers, addresses, and employers of all donors. First Choice challenged the subpoena in federal court. The Third Circuit dismissed the case for lack of standing. The Supreme Court reversed unanimously and remanded for further proceedings on the merits.

Why it matters:  This ruling is a meaningful First Amendment protection for nonprofits across the ideological spectrum. Any organization — advocacy groups, faith-based organizations, health nonprofits, community organizations — that holds sensitive donor, member, or supporter data now has a clearer path to challenge government demands for that information in federal court without first exhausting state proceedings. In the current environment of intensified federal and state scrutiny of the sector, this decision provides a legal shield organizations should be aware of.

Where things stand:  The case has been remanded to the district court for further proceedings on the merits. The ruling on standing is final. PANO will share additional analysis if further guidance emerges from lower court proceedings.