he IRS rule, announced last week, means organizations no longer have to disclose donors who contribute $5,000+
Senators’ Spotlight Act will overturn controversial rule; shed more light on major campaign contributors
(Washington, D.C.) – Today, U.S. Senator Patty Murray (D-WA) joined 26 of her colleagues to introduce the Spotlight Act, a bill to reverse the Treasury Department’s recent decision that allows non-profit organizations that engage in political activity to avoid disclosing certain donor information to the Internal Revenue Service (IRS). TheSpotlight Act also requires these organizations to disclose the names of donors to the public, not just the IRS, preventing special interests from hiding individuals who are funding political campaigns.
“It’s absolutely outrageous for President Trump to change the rules to give cover to big-dollar donors, and tip the scales even more for the wealthiest few who are writing the biggest checks,” said Senator Patty Murray. “Every member of Congress, regardless of their party affiliation, should join our efforts to demand more transparency in political donations and better information for the families we represent.”
Under current law, 501(c)(3) organizations are required to provide donor information to the IRS. However, the Treasury Secretary has broad discretion to determine what type of donor information is required for other types of tax-exempt organizations. Trump Treasury Secretary Steven Mnuchin recently decided he would not collect that information any more.
The Spotlight Act, introduced by U.S. Senator Jon Tester (D-MT), will specifically require three classes of nonprofit organizations – (501(c)(4), 501(c)(5), and 501(c)(6)) – to disclose publicly and to the IRS the names and information of donors who contribute more than $5,000.
The bill text is available HERE.