We am proud to share that after months of advocacy, HB2112 / SB2642, also known as the RIFT Act, has officially passed both the Tennessee House and Senate. This is a landmark victory for the Tennessee nonprofit sector and marks a significant milestone: it is the first piece of legislation that Tennessee Nonprofit Network has championed and successfully seen through to the finish line. Governor Lee has signed the legislation, and it becomes law effective July 1, 2026!
The support for this bill was overwhelming and bipartisan. It passed with a unanimous 94-0 vote in the House and a 31-0 concurrence in the Senate. Following this incredible show of support, the legislation was signed by Governor Lee and will take effect on July 1, 2026.
Why the RIFT Act Matters
Until now, nonprofits across our state faced significant hurdles when trying to claim assets like retirement accounts designated to them by donors. These organizations often dealt with:
- Significant Delays: It could take months to receive a gift intended for community service.
- Excessive Paperwork: Financial institutions frequently required redundant and cumbersome documentation.
- Privacy Risks: Perhaps most concerningly, volunteer board members and staff were often forced to provide sensitive personal information, such as Social Security numbers or home addresses, just to facilitate a transfer.
The RIFT Act solves these issues by establishing a standardized affidavit process, protected timelines for asset transfer, and strict privacy safeguards for nonprofit leadership.
Key Provisions of the Legislation
The bill, sponsored by Representative Clark Boyd and Senator Kerry Roberts, introduces several critical protections:
- Timely Notification: Financial institutions must notify charitable beneficiaries within 10 business days of learning of a donor’s death.
- Standardized Affidavit: Nonprofits can now claim assets using a sworn affidavit with clearly defined requirements.
- Privacy Protections: The law now prohibits requests for the Social Security numbers or home addresses of nonprofit staff and volunteer board members.
- Defined Timelines: Once a complete affidavit is submitted, assets or necessary information must be provided within 30 days.
A New Chapter for Tennessee Nonprofit Network
Today is a day for the history books. In our 34-year history, this is our first piece of legislation to pass, and it will certainly not be our last. This victory is a prime example of why we fought so hard to make Tennessee Nonprofit Network a reality.
By aligning with national best practices through the RIFT Project, Tennessee ensures that donor intent is honored and that critical resources reach our communities faster. Whether it is food assistance, health care, or education, our nonprofits can now focus more on their missions and less on administrative red tape.
Thank you to everyone who raised their voice in support of this bill. This win belongs to the entire Tennessee nonprofit community.