Karen Donnelly
Partner
Karen Donnelly is a partner at Holtzman Vogel with a practice focused on nonprofit and tax-exempt organizations, First Amendment litigation, and the defense of charitable and advocacy organizations in government investigations.
Karen counsels nonprofit and exempt organization clients across the full life of an organization, from formation, structuring, and qualification for exemption under Section 501 of the Internal Revenue Code through mergers, acquisitions, and dissolution. Her counseling work covers fundraising law, corporate governance, contracts, tax compliance, corporate sponsorships, charitable bequests, donor advised funds, unusual gifts, lobbying elections, and the reinstatement of revoked exemptions.
She has litigated First Amendment cases in federal and state courts nationwide and has argued appeals before the U.S. Courts of Appeals for the Fifth, Sixth, Tenth, and D.C. Circuits and the Supreme Court of Missouri. Much of her appellate work concerns the constitutionally protected right to solicit charitable contributions, including successive challenges to municipal bans on charitable donation receptacles and to state restrictions on fundraising. In 2018 and 2025 she filed petitions for writ of certiorari before the U.S. Supreme Court in appeals involving restrictions on charitable fundraising activities, including a municipal ban on donation bins.
Karen defends nonprofit and commercial clients in state attorney general investigations, congressional investigations, Federal Trade Commission investigations, multistate actions, and Internal Revenue Service audits. In 2025 she reached a multi-million dollar settlement between a professional fundraiser and the Federal Trade Commission and 22 states. In 2026 she resolved a U.S. Senate committee investigation involving a federal grant awarded to a nonprofit organization with children’s hospital and higher education subgrantees.
Donor privacy runs through much of her work. Karen coordinated, drafted, and filed an amicus brief before the U.S. Supreme Court in Americans for Prosperity Foundation v. Bonta on behalf of The Nonprofit Alliance Foundation, People for the Ethical Treatment of Animals, the Association of Fundraising Professionals, and 123 nonprofit organizations across the ideological spectrum. In 2025 she filed a related brief before the Sixth Circuit for the Foundation for Individual Rights and Expression, PETA, The Nonprofit Alliance Foundation, and 50 charitable organizations challenging the IRS requirement that charities disclose major donors’ names and home addresses on Schedule B of Form 990.
Before joining Holtzman Vogel, Karen was a partner at a notable law firm focused on non-profits in Kansas City.
**Admitted in Missouri and Kansas only. Not admitted in the District of Columbia. Practicing under the supervision of other partners who are members of the District of Columbia Bar.