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Nonprofit regulation in Oklahoma
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Nonprofit regulation in Oklahoma involves a complex set of rules that govern nonprofit organizations and charitable giving throughout the state. Major issues surrounding nonprofit regulation nationwide include the following:
- contribution limits,
- donor disclosure, and
- the redefinition of issue advocacy.
Oklahoma is one of 39 states that require charitable organizations, and those intending to solicit on their behalf, to register with the state in order to solicit contributions, whether they are an Oklahoma organization or based out-of-state. In Oklahoma a number of groups and organizations are exempt from registration.[1]
Oklahoma is one of only seven states requiring registration that does not accept the Unified Registration Statement (URS); organizations must use the state registration form.[2]
- Note: The following is not a how-to guide in managing an organization's registration and reporting requirements, but rather an attempt to share information about the relative degree of regulation governing nonprofit charitable activity at the individual state level. The information on this page was last updated in early 2015.
Background
According to the Foundation Center, there are over 1.5 million nonprofit organizations in the United States.[5] Section 501 of the U.S. tax code outlines which types of nonprofit organizations may be granted tax exempt status by the Internal Revenue Service. The section of this code that provides for exemption is section 501(a), which states that organizations are exempt from some federal income taxes if they fall under sections 501(c) or 501(d), or under section 401(a).[6]
Organizations classified as 501(c)(3) are nonprofit charitable, religious and educational organizations. These include organizations like the Red Cross and Habitat for Humanity as well as the American Civil Liberties Union and the Lucy Burns Institute, which provide, as defined in the federal code, “instruction of the public on subjects useful to the individual and beneficial to the community.”[7] Organizations granted 501(c)(4) status are political education organizations, and can engage in political lobbying. This includes donations to political committees that support or oppose ballot measures, bond issues, recalls or referenda. 501(c)(4) organizations can thus engage in issue advocacy, but they are not allowed to expressly advocate for the election or defeat of a particular candidate.
While the Internal Revenue Service designates eligible nonprofit charitable organizations with a federal tax exempt status, individual states require their own level of regulation and reporting, particularly when organizations attempt to solicit fundraising contributions. The amount of regulation required differs by state, as does the degree to which state regulations protect the privacy of individual donors. Three states, for instance, require annual copies of IRS Form 990 (schedule B), which lists individual contributors who contribute over a specified amount. Research shows that attempts to make contributions more transparent has an unintended negative effect on the number of contributors who give, as well as the amount.[4]
Governing agencies
The Oklahoma Secretary of State is the authority in the state that oversees rules governing donor solicitation and registration.
See law: Oklahoma Statutes, sections 18-552.1 through 18-552.16
Registration requirements
Any nonprofit group or organization located in Oklahoma, unless exempt, must register with the Oklahoma Secretary of State. Any non-exempt nonprofit, in any state, intending to solicit in Oklahoma must also register, along with anyone intending to solicit in Oklahoma on behalf of a nonprofit. Non-exempt nonprofits might include traditional charitable organizations like the Red Cross or Habitat for Humanity, educational or policy organizations like the American Civil Liberties Union, or issue advocacy groups like the League of Conservation Voters.
Exemptions
A number of groups are exempt from registering in Oklahoma. Unlike most states, Oklahoma does not advise organizations about whether they qualify for exemption. Organizations that believe they are exempt, however, may send a letter to the Secretary of State stating that their group is exempt, citing the applicable qualification.
The following groups are exempt from registering:[1]
- Religious groups
- Educational organizations, including affiliated 501(c)(3) organizations
- Membership organizations (who solely solicit their own members)
- Appeals for named individuals, provided "all the money collected is deposited in an account established for the person at a local bank."
Procedures
Nonprofits registering in Oklahoma must use the Registration Statement of Charitable Organization; the Unified Registration Statement (URS) is not accepted.[1]
Documents
The following documents are required along with your registration form:[1]
- Copy of IRS Form 990 (if an organization doesn't file one, then it must provide something that shows its status as a tax-exempt organization)
- Complete list of names and contact information of organization officers, principal staff, director and trustees
- If an organization uses professional fundraisers, it must provide a Professional Fundraiser Information Attachment
- Completed state financial statement form
Signature and fee
A non-notarized signature from an authorized officer is required.
The registration fee is $65 if revenue is more than $10,000; $15 if less.[1]
Filing procedures
Registration materials must be mailed to:[1]
Secretary of State
2300 N. Lincoln Blvd, Suite 101
Oklahoma City, OK 73105
Renewal
Registration is valid for one year from the date of initial registration. Organizations must renew their registration on or by that anniversary date. Extensions are not offered, though organizations can submit their most recent IRS Form 990 or financial information and simply update the state with newer information when it becomes available.
The renewal process is the same as registration.[1]
Financial reporting
Annual financial reporting requirements are satisfied when filing for registration renewal, described above.[1]
Recent news
This section links to a Google news search for the term "Oklahoma + donor + privacy"
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 4.0 4.1 London School of Economics, "Campaign finance laws that make small donations public may lead to fewer people contributing and to smaller donations," January 7, 2015
- ↑ Foundation Center, "Frequently Asked Questions," accessed December 17, 2014
- ↑ Cornell University Law School, "26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc," accessed January 13, 2015
- ↑ Cornell University Law School, "26 CFR 1.501(c)(3)-1 - Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals," accessed January 13, 2014
