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August 22, 2014

Texas Panel Eyes Disclosure Rules for Nonprofit Politicking

The Texas Ethics Commission has drawn up draft regulations that would require nonprofits to identify their donors if they devote at least a quarter of their spending to political activities, the San Antonio Express-News reports. The proposal, unveiled Thursday, would also mandate disclosure if more than 25 percent of contributions to a group are deemed political.

The rules aim to define when politicking becomes a nonprofit's "principal purpose" and such groups should be treated as political-action committees, which are required to reveal their funding sources. The commission could vote on the plan at its next meeting in October, following a period of public comment. Governor Rick Perry vetoed a bill last year that would have required 501(c)4 entities that spent more than $25,000 on politicking to identify donors of more than $1,000.