The House has initially approved a measure that would shield nonprofits from releasing the names of donors even when they engage in lobbying and educating voters on ballot measures.
Rep. J.D. Mesnard of Chandler sponsored a bill that would extend protections in place for churches to tax-exempt nonprofits in order to prevent them from having to register as political committees or file campaign finance reports.
Nonprofits are allowed to spend up to 20 percent of their funding on lobbying that can also include spending on ballot measures, initiatives and referendums.
Opponents say the bill would limit campaign finance disclosure.
The Goldwater Institute says it designed the bill to level the playing field for all nonprofits.
The House initially approved House Bill 2296 Wednesday. It now awaits a formal vote.