SB 844: Charitable organizations; creating the Safeguarding Endowment Gifts Act; prohibiting certain use of funds by charitable organizations under certain circumstances. Effective date. - Oklahoma

SB844 (3-18-25) (GILLESPIE) FS WDFA1.PDF → SB844 (3-24-26) (GILLESPIE) FS FA3.PDF · 6 edits

MODERATE

This bill updates the legislative session dates from the 2025 session to the 2026 session. It significantly modernizes the 'Safeguarding Endowment Gifts Act' by replacing outdated definitions of 'charitable organizations' with current IRS standards and introducing a new definition for 'donors.' The most critical change is the addition of a new enforcement mechanism allowing donors to file complaints against charities that violate endowment restrictions, while explicitly prohibiting courts from ordering the return of donated funds.

Scope change

The bill's scope expanded to include modernized definitions of charitable organizations and a new category of 'donors' (including estate executors and designated individuals). The act now applies to a broader range of entities and introduces specific procedures for handling violations of donor-imposed restrictions.

TECHNICAL

Updated the legislative session reference from the 1st Session of the 60th Legislature (2025) to the 2nd Session of the 60th Legislature (2026).

DEFINITION

Revised the definition of 'charitable organization' to align with current Section 501(c) of the US Internal Revenue Code, adding specific purposes like environmental protection and emergency relief.

Added a new definition for 'donor' to include individuals who have executed endowment agreements, as well as estate administrators, surviving spouses, and designated representatives.

ENFORCEMENT

Created a new right for donors to file a complaint in court if a charity violates an endowment restriction, provided the donor notifies the charity and Attorney General 90 days in advance.

Explicitly stated that courts cannot order the return of donated funds to the donor, even if a violation is found, limiting remedies to other actions consistent with the agreement's purpose.

REQUIREMENT

Required charitable organizations to notify donors within six months if they cannot fulfill an endowment agreement term and must offer alternative solutions.

Engrossed → SB844 (3-18-25) (GILLESPIE) FS FA1.PDF · 5 edits

MODERATE

This bill was updated to clarify that the 'Safeguarding Endowment Gifts Act' applies to 'restricted endowment gifts' rather than just funds. The definitions were expanded to include natural persons acting as charities and specific types of tax-qualified trusts, while the list of eligible charitable purposes was slightly reworded for clarity. These changes broaden the scope of who and what is protected under the new law.

Scope change

The bill's scope was expanded to explicitly include natural persons and various types of charitable trusts, not just traditional institutional endowment funds.

DEFINITION

The definition of 'Charitable organization' was changed to include 'any person' soliciting contributions, explicitly covering natural persons in addition to organizations.

A new definition for 'Charitable trust' was added to include specific types of tax-qualified trusts like charitable remainders and pooled income funds.

The definition of 'Endowment fund' was updated to align with the Uniform Prudent Management of Institutional Funds Act and clarify exclusions.

REQUIREMENT

The list of eligible charitable purposes was slightly reworded (e.g., changing 'public safety testing' to 'testing for public safety') for consistency.

TECHNICAL

Header information was updated to reflect the bill as a 'Floor Substitute' with new page and request numbers.

Introduced → Engrossed · 5 edits · Mar 30, 2026

MODERATE

The bill was revised to expand the definition of eligible charitable organizations to include individuals and entities performing specific activities like sports promotion and poverty relief. It also updated the enforcement timeline, requiring donors to notify the Attorney General 90 days before filing a lawsuit and reducing the statute of limitations to two years. Additionally, the notice period for organizations unable to fulfill endowment terms was extended from 30 days to six months.

Scope change

The bill now applies to a broader range of organizations, including those focused on amateur sports, poverty relief, and emergency aid, and explicitly includes individuals representing themselves as charities.

DEFINITION

Expanded the definition of 'charitable organization' to include specific purposes like amateur sports, poverty relief, and emergency aid, and added individuals acting as charities.

REQUIREMENT

Added a mandatory requirement for donors to notify the Office of the Attorney General at least 90 days before filing a complaint.

TIMELINE

Reduced the time limit for filing a complaint from six years to two years after discovering a violation.

Extended the notice period for organizations unable to fulfill endowment terms from 30 days to six months.

ENFORCEMENT

Clarified that complaints cannot seek monetary damages for the donor, focusing instead on judicial declarations of rights.

Charitable organizations; creating the Safeguarding Endowment Gifts Act; prohibiting certain use of funds by charitable organizations under certain circumstances. Effective date.

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