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Lawsuit: IL law requiring nonprofits to disclose leaders' race, gender promotes discrimination

COOK COUNTY RECORD

Wednesday, January 22, 2025

Lawsuit: IL law requiring nonprofits to disclose leaders' race, gender promotes discrimination

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Illinois Gov. JB Pritzker, flanked by Illinois Senate President Don Harmon, left, and House Speaker Emanuel "Chris" Welch, right. All supported SB2930 | Office of the Governor

The state of Illinois is unconstitutionally seeking to use a new state law to effectively force nonprofit organizations to discriminate in favor of people of preferred races, genders and other identifiers when choosing their leadership and staff, a new lawsuit asserts.

On Jan. 21, the organization known as the American Alliance for Equal Rights filed suit in Chicago federal court against the state, seeking to win a court order blocking the state from enforcing a recently enacted state law.

The law at the heart of the action, known as Senate Bill 2930, would force nonprofit organizations in the state to publicly disclose the race, gender and other "demographic classifications" of their staff and board members.

The lawsuit asserts the compelled public disclosure ordered by SB2930 violates two constitutional freedoms: the First Amendment right "to speak freely and the right to refrain from speaking at all" and the constitutional right to "to be free from state-ordered racial discrimination."

According to the lawsuit, the law unconstitutionally forces nonprofits to ask their staff disclose "if they are gay or straight, black or white, transgender or not," and then forces the organization to "publish those answers on their own website for years."

"And when they publish it, the nonprofits must use Illinois' preferred 'demographic classifications' - even if they think those classifications are irrational, ahistorical, immoral, or offensive," the lawsuit said. 

Further, the lawsuit asserts the law essentially pushes nonprofit organizations to discriminate in the selection of its board members to satisfy so-called diversity goals desired by the Democrats who dominate Springfield.

"By forcing nonprofits to publicize their demographic data, SB2930 pressures them to discriminate when choosing board members," the lawsuit said. "That discrimination is by design: The law's sponsors drafted SB2930 to 'encourage more diversity' in the nonprofit sector, and Illinois' governor (JB Pritzker) signed it for that very reason."

SB2930 was passed by both the Illinois House and Senate in May 2024. Pritzker signed the measure into law on July 1.

In a release announcing the signing of the bill into law, Pritzker indicated the law was part of his broader effort to "prioritize LGBTQ+ rights" in Illinois and to "expand on my administration's work to better serve the LGBTQ+ community of Illinois."

He said the law would "encourage nonprofits to reflect the diversity of the communities they support."

Some of the bill's legislative sponsors - all Democrats - issued similar statements.

"This measure is a step forward for equity for Illinois' nonprofit organizations," said State Rep. Edgar Gonzalez, D-Chicago in the news release from Pritzker's office at the time the bill was signed.

"The diverse range of communities nonprofits serve should be handled by a diverse range of people, and promoting that will only improve the quality of assistance offered."

State Sen. Adriane Johnson, D-Buffalo Grove, added: "It is crucial for diversity and inclusion to be embraced within the non-profit sector, as many of the organizations serve diverse communities. Inclusive leadership positions of nonprofits will enhance the organization's overall mission."

Under the law, nonprofit corporations which "reports grants of $1 million or more to other charitable organizations" would be required to post on its website "the aggregated demographic information of the corporation's directors and officers, including race, ethnicity, gender, disability status, veteran status, sexual orientation and gender identity."

The information would be required to remain available for public review for at least three years.

A precise list of required "demographic classifications" would be determined by the Illinois Department of Human Rights, according to the text of the law.

The lawsuit from the American Association for Equal Rights said the law amounts to an order from the state to discriminate, or risk "public shaming" at the hands of state officials or others.

"And the only way to avoid that 'shaming' is by 'making discriminatory decisions' when hiring 'board members,'" the AAER said.

The AAER said the Constitution doesn't allow the state to order anyone to discriminate. 

"And Illinois cannot end-run the Constitution's colorblind commands by 'encouraging' private actors to discriminate," the AAER said in its complaint. 

The complaint asserts that while other states have used laws to require organizations to confidentially report demographic information, Illinois is the first to require nonprofits to publicly disclose such information about their staff and directors.

The lawsuit was filed on behalf of at least two Illinois nonprofits, who purportedly are dues-paying members of the AAER and have empowered the AAER to speak for them in court. In the complaint, those two nonprofit organizations are identified only as "Members A and B."

In the complaint, the AAER said the two organizations wish to remain pseudonymous "because they fear Illinois will retaliate against them for opposing SB2930" and that "other organizations will be unwilling to partner with them, potential employees will be unwilling to work for them, and donations will decrease if their participation in this litigation becomes public."

"Revealing their identities would also expose Members A and B to the very discriminatory pressures they are trying to avoid," the complaint said.

The complaint accuses Illinois of violating the Constitution's Fourteenth and First Amendments by enacting SB2930.

They are asking the court to declare the law unconstitutional and to issue injunctions blocking the state from enforcing the law.

Plaintiffs are represented in the action by attorneys Matt Pociask, Thomas R. McCarthy, Cameron T. Norris and R. Gabriel Anderson, of the firm of Consovoy McCarthy PLLC, of Arlington, Virginia.

The lawsuit is the second filed in recent months by the AAER against the state. 

In October 2024, the group sued in federal court in central Illinois to end a longstanding state-funded scholarship program the state says was set up to "diversify" the ranks of Illinois' public school teachers. The AAER said that program, known as the Minority Teachers of Illinois Scholarship Program, illegally discriminates against white students by excluding them from applying to participate in the program.

The lawsuit remains pending in federal court. A judge there is considering the state's motion to dismiss the lawsuit. 

The state has argued the AAER has no standing to sue because it has refused to publicly identify the plaintiffs who accuse the state of discrimination. In that complaint, the AAER also identified its member plaintiff only as "Member A."

In a response filed Jan. 17, the AAER, in turn, said such public disclosure is not required under longstanding legal precedent.

The AAER is represented in that case by attorneys from the Pacific Legal Foundation, of Sacramento, California.

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