Maybe I missed it. Was there an explicitly stated reason for the change? What problem are they trying to fix?
It's a somewhat complicated issue related to free speech and the fact that the IRS doesn't need this information to begin with. The organizations in question are exempt from paying taxes to begin with and the so providing information to the IRS up front is not necessary. The IRS can still request information from these organizations if they believe that there is an issue. The
Washington Post has a good summary of the issues (providing you have not exceeded the number of free articles this month
Personally, I think this is the correct decision under current law but that the policy of not disclosing contributions to these organizations which are effectively political campaign arms is just wrong. This coupled with the Citizen's United Supreme Court ruling that overturned the McCain/Feingold campaign funding law has led to a lot of "dark money" into our campaigns. The only way around this is open disclosure of financing which will require a carefully tailored law from Congress. I don't mind unrestricted campaign contributions as long as there is a threshold for disclosure. There is no reason why contributions over $10K (just as an example, there should be an open debate about the minimum for disclosure) has to be reported to an Internet site within 48 hours of receipt. If I'm running for Congress as a candidate of 'Big Pharmaceutical Industry' and I report huge contributions, my opponent is then free to use this information in attack advertising. It will be very easy to identify those candidates that are receiving 'special interest' money. Some people may not have any problems with that, and others might; sunlight on this whole process is the best disinfectant (assuming one believes the process to be tainted).
The other thing that needs to be done is to correct the current tax code and clarify what constitutes a tax-exempt social welfare organizations. For example, the National Rifle Association falls into this category and there are liberal leaning groups also in this category. This is just another example of loopholes in the US tax code that need to be fixed. I am not optimistic that anything will happen and we will continue to see lots of "dark money" pouring into US election campaigns.