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Senate Moves To Block Policy That Lets Nonprofits Hide Major Donors

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Senate Moves To Block Policy That Lets Nonprofits Hide Major Donors
As it stands, the Treasury Department rule stands to go into effect next month.
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The senate has passed a resolution that would block a Trump administration rule shielding certain nonprofits from disclosing major donors to the IRS.

Senators voted 50-49 to repeal the rule, which the Treasury Department announced last summer. Under the rule, tax-exempt organizations wouldn't have to give the IRS identifying information about donors who contribute $5,000 or more. While the IRS collects this information, it's currently required to keep it confidential.

Groups that would qualify for this new exemption include 501(c)(4) social welfare organizations that are allowed to participate in political campaigns. These so-called "dark money" groups that have drawn criticism for keeping their donors secret in the past. 

The resolution will now need to be approved by the House, something its sponsor, Sen. Jon Tester, says is unlikely before the new Congress is sworn in in January. Even then, it would need to be approved by the president, whose administration put the rule forward in the first place. The rule is currently set to go into effect next month. 

Additional reporting by Newsy affiliate CNN