As any non-profit organization knows, it’s incredibly important to share and report on required information in order to maintain their good standing and non-profit status. But many charitable organizations are unaware of a new law that went into effect last year that expands on the activities that should be reported to the State of Oklahoma.
As of November 1, 2023, charitable organizations must give the Oklahoma attorney general (AG) a 45-day notice prior to certain events or transactions. This law was put in place to add a layer of oversight on these entities.
Does This Law Apply to Your Organization?
Per the statute, your charitable organization must file these notifications with the AG if it:
● Is incorporated, organized, or has its principal place of business in Oklahoma, or has assets located in Oklahoma valued at more than $500,000.00; and
● Has solicited contributions in Oklahoma for 1 year
What Events eed to Be Reported to the AG?
If the law applies to your non-profit, you must give written notice to the AG no later than 45 days before your charitable organization:
● Is dissolved or terminated
● Disposes of all or substantially all charitable assets
● Is removed from Oklahoma jurisdiction
● Removes all or substantially all charitable assets from Oklahoma
● Amends the governing document that describes your charitable purposes and the use and administration of your charitable assets
● Consummates a merger, consolidation, or conversion
The above events exclude any grants or other donations made in the ordinary course of operations and consistent with your non-profits past practices.
If the AG objects to any reported event, your non-profit organization will receive written notice. In this case, either the AG or charitable organization may file an action with the district court of the county to obtain a review of the objection.
Instances of Written Consent From the AG
Transferring a charitable asset that occurs earlier than 45 days after giving the notice is a violation, unless the charitable organization receives written consent before the transfer from the AG, or written notice from the AG that they will take no action related to the event.
The AG’s Review Process
Any events your organization reports will follow a similar review process. The primary factors the AG will consider include:
● The value of the assets or interests transferred
● The person or entity receiving the transfer
● The purpose of the transfer
● The source of the assets
● Whether the assets consist of donated funds or property
● The donors’ intent
● Any expression of support by the board of directors and voting members
Other Events That Must Be Filed
If your charitable organization receives a notice that its federal charitable income tax exemption has been revoked, modified, or denied, you must report this to the AG no later than 20 days after you were notified. This includes Auto-Revocation for failure to file tax for 3 years.
Contents of Notice:
Currently, the AG has not released any guidance as to what must be contained within the notice. However, Massachusetts has similar notice requirements and their Office of Attorney General has put out guides that may prove useful in attempting to navigate Oklahoma’s new law.
To learn more about this new law and how it will affect your organization, contact our firm.
