On June 26, President Donald Trump’s pick for the top tax policy official at the Treasury Department, Kenneth Kies, was confirmed by the Senate in a vote of 53-45. Kies’ confirmation will likely shape donor privacy protections and the future of philanthropic freedom.
Kies built his career in tax policy, serving as a chief of staff, lawyer and tax policy advisor to congressional leaders. For over 20 years, he’s led a private sector consultancy using his decades of tax experience to help shape national legislation and advocate for pro-growth tax policy while simplifying the tax code.
Americans have seen far too many breaches of trust when it comes to their personal financial information. From the 2021 ProPublica leak of private tax returns to more recent incidents where nonprofit donor data was exposed online, Americans have every reason to be concerned about their private information being shared for political reasons.
Sen. Todd Young (R-Ind.) is a strong leader for philanthropic freedom on the Senate Finance Committee, and expressed concern about data leaks that compromise donor privacy. His Protecting Charitable Giving Act would increase penalties for leaking donor information, holding bad actors accountable so donors can support causes they care about without fear of having sensitive information exposed.
Young doubled down on this issue in his questions to Kies during the Senate Finance Committee hearing in April:
Young: “Charitable organizations across the country provide social services to communities in need, oftentimes offering services that cannot be fulfilled by the government. We have seen several instances of late where tax documents of 501(c)(3) and 501(c)(4) organizations have been leaked, disclosing the names and other personal information of donors for those organizations. Regrettably, the independent treasury inspector general for tax administration recently issued a report finding that the IRS is failing to implement the necessary controls to ensure the security and privacy of taxpayer data that would prevent these leaks in the future. I have a bill, the Protecting Charitable Giving Act, that would strengthen and reinforce the penalties for leaking tax documents of 501(c)(3) and 501(c)(4) organizations and their donors. I believe that donor privacy is essential to philanthropic freedom and allows donors the right to remain anonymous should they wish.
If confirmed, do you commit to working with me to ensure that the IRS prioritizes the confidentiality of taxpayer data and protecting philanthropic freedom?”
Kenneth Kies: “If confirmed, I will take taxpayer data and confidentiality seriously, just as I did when I was chief of staff of the Joint Committee on Taxation. If confirmed, I commit to working with my colleagues at Treasury and the IRS to implement tax laws in a manner that ensures that the confidentiality of taxpayer data is prioritized.”
Earning the support of Young and others on the committee, his nomination was advanced to the full Senate and confirmed on June 26.
As the Roundtable continues to lead on philanthropic freedom and donor privacy, we look forward to working with Assistant Secretary Kies on policies that ignite economic growth and pave the way for charitable giving to flourish.
