Nonprofit organizations rely heavily on funding from donations, gifts, and the like to make an impact in the communities they serve. Such resources are relatively scarce, and fundraising in the nonprofit world is a highly competitive endeavor. Accordingly, carefully guarded donor and participant lists may be considered trade secrets. N. Atl. Instruments, Inc. v. Haber, 188 F.3d 38, 44 (2d Cir. 1999). Under the Uniform Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836 et seq., a trade secret is information that derives economic value from not being generally known that is subject to reasonable measures of secrecy by its owners. But how does a nonprofit charitable organization sufficiently plead the economic value of its donor and participant lists?
Continue Reading The Economic Value of Nonprofits—Donor and Participant Lists