DOJ Moves to Challenge Illinois Nonprofit Board Disclosure Law

Quick Hits

• An activist group has asked a federal district court to strike down an Illinois law requiring the disclosure of nonprofit organizations’ board demographics.
• The DOJ has intervened in the case, claiming that the law violates the Fourteenth Amendment.
• The intervention is part of the DOJ’s effort to eliminate DEI practices nationwide.

On March 11, 2025, the U.S. District for the Northern District of Illinois granted the DOJ’s motion to intervene in American Alliance for Equal Rights v. Bennett. The plaintiff, American Alliance for Equal Rights (AAER), is a nonprofit group that has opposed a number of diversity programs nationwide.

Here, the AAER is challenging an Illinois law that requires qualifying nonprofits to disclose the demographic makeup of their directors and officers on their websites. The demographic categories include race, ethnicity, gender, disability status, veteran status, sexual orientation, and gender identity. AAER alleges that the statute violates the Fourteenth Amendment of the U.S. Constitution by encouraging organizations to discriminate based on race and the First Amendment of the U.S. Constitution by compelling organizations to speak about demographic issues that they otherwise would not discuss.

On March 4, 2025, the DOJ moved to intervene in the case. The government cited Students for Fair Admissions, Inc. v. President and Fellows of Harvard College (SFFA), arguing that the Illinois law violates the Equal Protection clause on account of race. SFFA is the 2023 Supreme Court of the United States decision eliminating affirmative action in higher education. In a press release, the DOJ called the intervention “an early step toward eradicating illegal race and sex preferences across the government.” U.S. Attorney General Pamela Bondi emphasized the department’s intention to intervene in cases where a state “encourages DEI instead of merit.” Although certain portions of President Trump’s anti-DEI executive orders have been preliminarily enjoined, the move shows the DOJ continues to execute the administration’s policy goals in other ways.

Next Steps

Although the case is narrow in scope, the outcome may shed light on the Trump administration’s views on the legality of demographic reporting in other contexts and how the SFFA decision may be applied outside of higher education.

Ogletree Deakins’ Diversity, Equity, and Inclusion Compliance Practice Group and Government Contracting and Reporting Practice Group will continue to monitor developments and will provide updates on the Diversity, Equity, and Inclusion Compliance, Employment Law, Government Contracting and Reporting, Governmental Affairs, and Illinois blogs as additional information becomes available.

This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ New Administration Resource Hub.

Follow and Subscribe
LinkedIn | Instagram | Webinars | Podcasts