Just One Thing: FACTA and October’s Brown Bag…

Have you recently seen the “deer-in-the-headlights” look? The description of the new FACTA law and its impact on nonprofits barreled its way toward the attendees of October’s Brown Bag, and we all had the “deer-in-the-headlights” look.

While FACTA is created to primarily apply to lenders, insurers, employers, landlords, government agencies, mortgage brokers and automobile dealers, its intent causes the law to apply to all but a few nonprofits. FACTA, the Fair and Accurate Credit Transaction Act, and its Disposal Rule are meant to “reduce the risk of consumer fraud and identity theft created by improper disposal of consumer information.”

How do nonprofits collect consumer information?

Donor Development and Fundraising. What damage to a nonprofit’s reputation would be caused by identity theft being traced back to a nonprofit’s lack of proper disposal of donor information!

So, if you collect the names and addresses of your donors (you should!), their birthdates to send birthday cards, checks and credit card numbers to receive their donations and any other personal information…

then be sure to shred all documents, scraps of paper, etc. with that information when you go to dispose of it. Don’t just throw it away!

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