Navigating State Privacy Law Changes for Nonprofits and Ensuring Data Compliance

by Stacey Segal, COO

This post is provided for informational purposes only and is intended to share general guidance and practical considerations related to CRM cutover planning. It does not constitute legal, regulatory, or contractual advice. Organizations should consult their own legal, compliance, and risk management professionals to ensure that any system transition, data handling, or operational decisions align with applicable laws, regulations, and organizational policies.

As a nonprofit IT professional, you can face growing challenges when managing sensitive data amid evolving privacy laws. These laws affect how your organization collects, stores, and shares personal information. Staying compliant is not just about avoiding fines; it’s about protecting the trust your donors, volunteers, and beneficiaries place in you.

Understanding the Landscape of Nonprofit Privacy Laws

State privacy laws have expanded rapidly in recent years. California’s Consumer Privacy Act (CCPA) and Virginia’s Consumer Data Protection Act (CDPA) are just two examples that have set new standards for data privacy. Many other states have followed suit with their own regulations, many of which have unique requirements.

For nonprofits, this means:

• Tracking multiple laws: Your organization might operate or collect data across several states, each with different rules.

• Handling sensitive data carefully: Donor information, volunteer records, and beneficiary details often include personal identifiers that require protection.

• Adapting policies regularly: Laws change, and your privacy policies must reflect those updates to remain compliant.

  
  

Privacy laws often focus on transparency, data minimization, and giving individuals control over their information. Understanding these principles helps you align your data practices with legal expectations.

There are many resources nonprofits can rely on to stay informed about evolving laws and regulatory requirements, including their own legal teams and trusted online tools. Blackbaud’s Resource Center is a particularly valuable reference, offering well-organized, up-to-date information and helpful links that support informed decision-making around data privacy and compliance. https://docs.blackbaud.com/privacy/

Changes in State Privacy Laws

Here are some examples of recent changes that may impact how nonprofits manage data:

• Expanded definitions of personal data: Many laws now include biometric data, geolocation data, and even inferred data in their definitions.

• Stronger consumer rights: Some laws allow individuals to request access to their data, ask for corrections, or demand deletion.

• Data breach notification requirements: Organizations must notify affected individuals and, in some cases, regulators.

• Restrictions on data sharing and selling: Some states prohibit the sale of personal data or require explicit consent before sharing it with third parties, and the impact on nonprofits can vary depending on factors and state laws.

  
  

Practical Steps to Ensure Compliance with Nonprofit Privacy Laws

You can take several concrete actions to navigate changes:

Conduct a Data Inventory

Identify what personal data your nonprofit collects, where it is stored, and who has access to it. This inventory helps you understand your risk areas and compliance obligations.

• Include donor databases, volunteer management systems, email lists, and any third-party platforms.

• Note data types such as names, addresses, payment information, and health-related details.

  
  

Update Privacy Policies and Notices

Make your privacy policies clear, concise, and easy to find. Consult legal counsel or the appropriate staff on your team who maintain current policies. Policies should explain:

• What data do you collect and why

• How you use and share data

• Individuals’ rights regarding their data

• How to contact your organization with privacy questions

  
  

Review these policies regularly and update them when laws change.

Train Your Team

Ensure everyone handling data understands the importance of privacy laws and your internal policies regarding them. Training reduces the risk of accidental misuse.

Review Third-Party Agreements

If you share data with vendors or partners, verify that their practices meet your privacy standards.

What Nonprofit IT Staff Should Prioritize Now

• Stay informed: Subscribe to updates from trusted vendors, like Blackbaud or from your legal advisors.

• Build flexibility into your systems: Design data management tools that can adapt to new rules.

• Engage leadership: Ensure your board and executives understand privacy risks and support compliance efforts.

• Document everything: Keep clear records.

  
  

By focusing on these areas, you can stay up to date, prepare for potential changes in privacy laws, and strengthen your nonprofit’s reputation.