Why should individuals be notified of the use of their demographic information for fundraising?

Individuals should be notified of the use of their demographic information for fundraising primarily to ensure transparency and provide them with the opportunity to opt-out. Transparency is a fundamental principle of the HIPAA Privacy Rule, which emphasizes the importance of allowing individuals to understand how their personal health information, including demographic data, will be used. By informing individuals, organizations respect their autonomy and give them a choice about their information.

The option that it is a regulatory requirement may suggest compliance, but the core reason revolves around the principles of transparency and choice inherent in the Privacy Rule. Simply notifying individuals does not encompass the whole purpose, which is to empower them regarding their personal information. Not notifying individuals entirely undermines their rights, and while encouraging more donations might be a desired outcome, it is not the primary rationale for notification—it is more about protecting individuals' privacy and preferences in the management of their data.