CHICAGO (CN) — In a federal lawsuit filed in Chicago on Tuesday, a nonprofit group argues that a new Illinois diversity-affirmation law violates the First Amendment.
The American Alliance for Equal Rights, a nonprofit group led by conservative legal activist Edward Blum, claims the law pushes nonprofits to “discriminate” when selecting their board members.
“That discrimination is by design: The law’s sponsors drafted SB 2930 to ‘encourage more diversity’ in the nonprofit sector, and Illinois’ governor signed it for that very reason,” the alliance writes in its 17-page complaint.
The law, Senate Bill 2930 — which Democratic Illinois Governor J.B. Pritzker approved at the end of last June — requires certain nonprofits to publicly list the aggregated demographic information of their directors and officers online. This includes information on the directors’ and officers’ “race, ethnicity, gender, disability status, veteran status, sexual orientation and gender identity.”
“The aggregated demographic information shall be accessible on the corporation’s publicly available website for at least three years after it is posted,” the law states.
Illinois Democrats argued the law would improve nonprofits’ efficacy in working with diverse Illinois communities. The governor signed the bill at the end of LGBTQ Pride Month, which Pritzker’s office noted at the time.
“It is crucial for diversity and inclusion to be embraced within the nonprofit sector, as many of these organizations serve diverse communities,” Democratic state Senator Adriane Johnson said in a prepared statement last June. “Inclusive leadership positions of nonprofits will enhance the organization’s overall mission.”
Blum’s group disagrees. It claims two of its constituent members — going by “Member A” and “Member B” in the 17-page complaint — believe the demography of their boards and officers are irrelevant to their performance. And they argue the new law forces the organizations to go against that belief.
“Members A and B don’t classify their staff by race, ethnicity, sexual orientation, or gender identity. They don’t ask their staff if they fall in any of those categories,” the alliance writes. “And they don’t consider race, ethnicity, sexual orientation, or gender identity when filling their board positions because they think it would be immoral, unlawful, and unwise.”
The law does not affect all nonprofits, but only “a corporation that reports grants of $1 million or more to other charitable organizations” on its annual charitable organization report to the state. The alliance claims Members A and B fall into that category. It argues they will be adversely impacted by the new law, which took effect at the start of the year.
“By forcing nonprofits to publicize their demographic data, SB 2930 pressures them to discriminate when choosing board members,” the group argues.
The alliance further argues the law will open Members A and B to “public shaming” by unspecified activists if the organizations’ boards aren’t diverse enough.
“Groups whose posted demographics are perceived as insufficient will be subjected to ‘public shaming’ by activist groups and other members of the public,” the alliance writes.
The alliance also says it’s concerned that the law could pressure LGBTQ board members or officers to out themselves publicly, though the law allows an individual to “decline to disclose any or all personal demographic information” to a given organization collecting its demographic data.
Blum’s group now brings two counts against the state on First and Fourteenth Amendment grounds. It seeks a court declaration that the new law violates those constitutional amendments, and a permanent injunction barring the law’s enforcement.
The complaint names as defendants Illinois Attorney General Kwame Raoul, Director of the Illinois Department of Human Rights James Bennett, and Illinois Secretary of State of State Alexi Giannoulias.