Charities Report Delays in Gifts from Deceased Donors at Financial Firms

Nonprofit organizations are voicing strong objections to new banking protocols that require the disclosure of employees’ personal data before a charitable donation can be processed. The policies, introduced by several major financial institutions, mandate that donors provide detailed information about the charity’s staff—including names, addresses, and employment histories—to verify the legitimacy of the recipient organization.

The backlash stems from concerns over privacy, data security, and the administrative burden placed on charities. Many nonprofits argue that the requested information is unrelated to the donation’s purpose and could expose staff to identity‑theft risks. Industry groups have called the measures “unnecessary and disproportionate,” citing existing regulatory frameworks that already safeguard donor and recipient confidentiality. Some banks have begun to review the rules, while advocacy groups push for clearer guidelines that balance fraud prevention with privacy protection.

If the policies remain unchanged, charities may face delays in receiving funds and increased compliance costs. The debate highlights a broader tension between financial institutions’ risk‑management practices and the operational realities of nonprofit work, prompting calls for a more streamlined, privacy‑respecting approach to charitable giving.