Texas Senate Bill SB2186

Texas 2009 - 81st Regular

Caption

Relating to a reporting requirement for certain nonprofit corporations that award college scholarships.

Impact

The implementation of SB2186 is expected to enhance transparency and accountability within the nonprofit sector, particularly among organizations that operate with significant financial resources. By mandating these nonprofits to publicly disclose detailed information regarding scholarship distributions, the bill aims to ensure proper oversight and encourage responsible management of charitable funds dedicated to educational purposes. This measure addresses concerns about the accessibility and equitable distribution of scholarships among students from diverse backgrounds.

Summary

Senate Bill 2186 introduces a reporting requirement for certain nonprofit corporations that provide college scholarships in Texas. Specifically, the bill targets nonprofit entities classified under Section 501(c)(3) of the Internal Revenue Code with gross revenues of $50 million or more in the preceding calendar year. These corporations must report the scholarships and grants they award, including detailed information about the recipients, such as their names, addresses, ethnicity, and educational history, to the secretary of state by May 1 of each year.

Conclusion

Overall, SB2186 serves a dual purpose of fostering transparency in scholarship distribution while simultaneously attempting to uphold ethical standards within the nonprofit sector. The bill is designed to hold large nonprofit corporations accountable, ensuring they contribute to a fair educational landscape. As the implementation date approaches, stakeholders will be closely watching how these changes are received by the nonprofit organizations and the students they aim to support.

Contention

While the bill generally has support for promoting transparency, there may be concerns regarding the privacy of scholarship recipients. Critics could argue that the requirement to disclose personal information, such as names, addresses, and ethnicities, may infringe on individual privacy rights, possibly discouraging students from applying for scholarships. Stakeholders in the nonprofit community might also raise questions about the administrative burden placed on these organizations to compile and submit this information annually.