Nonprofit challenges Illinois demographics-disclosure law for charities

The American Alliance for Equal Rights argued before a Seventh Circuit panel that an Illinois law requiring charities to publish aggregated demographics of their officers and directors violates constitutional rights, though the case still hinges on whether the group even has standing to sue. The nonprofit sued on behalf of two unnamed members, citing fear of retaliation, after an Illinois federal court dismissed the case for lack of standing.

Attorney Cameron Norris argued members are directly regulated because they must ask leaders demographic questions and collect the answers, even though the law lets any director or officer opt out without penalty. Norris countered that opting out still makes a nonprofit look 'less diverse than it really is,' particularly on questions about sexual orientation, disability or veteran status.

Illinois deputy solicitor general Sarah Hunger accused both Norris and a supporting Justice Department attorney of trying to dodge the merits entirely, saying she'd be happy to skip that debate too if they weren't hoping for a reversal. The panel, split across three presidential appointments, gave no timeline for a ruling.

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