Koch Brothers Can Keep Conservative Nonprofit's Donors a Secret, Judge Rules

A nonprofit conservative group founded by billionaire brothers David and Charles Koch can keep the identities of its donors secret, a Los Angeles federal judge ruled today.

The Americans for Prosperity Foundation sued California Attorney General Kamala Harris two years ago for allegedly violating the Constitution by seeking the identities of its donors.

Following a bench trial, U.S. District Judge Manuel Real ruled that Harris' office did not show a sufficient need for the information when it sought to suspend the foundation's state tax exemption and business license unless the donors list was turned over as part of a Schedule B federal tax form.

The disclosure demanded by the attorney general "would create a burden" on the foundation's First Amendment rights, Real wrote in his decision.

Harris spokeswoman Kristin Ford said the office will appeal.

"We are disappointed in Judge Real's ruling," Ford said. "The filing of the Schedule B is a long-standing requirement that has helped attorneys general for more than a decade to protect taxpayers against fraud."

Attorneys for the Kochs argued that Harris -- a Democrat who is running for U.S. Senate -- had never before asked for its list of donors.

"Matters reached a boil on Oct. 29, 2014, when the attorney general issued an ultimatum: unless the foundation turned over its Schedule B for 2011 and 2012 within 30 days, she would revoke the foundation's state tax exemption, suspend the foundation's registration, and impose fines on the foundation's 'directors, trustees, officers and return preparers,' for which these individuals would be 'personally liable,"' according to the suit.

City News Service