Out of 51 U.S. jurisdictions, Oklahoma ranks #31 overall for its friendliness towards faith-based nonprofit organizations. Oklahoma has some policies that facilitate the contributions of faith-based nonprofits, including an automatic exemption from state corporate income tax for religious organizations that have 501(c)(3) status, a broad automatic exemption from charitable registration requirements for religious organizations, and no audit requirement to solicit donations in the state. Oklahoma, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a broad Blaine Amendment, laws regarding public accommodations that include no meaningful exemptions for religious organizations, and very limited exemptions to sales tax on religious organizations’ purchases and sales.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Oklahoma Constitution follows in “lockstep” with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment.
State Religious Freedom Restoration Act:
3
/5
Oklahoma has enacted a RFRA protecting the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since these protections originate in a statute rather than the state constitution, Oklahoma does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
Oklahoma’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Religious Freedom for Faith-Based Employers:
-3
/5
Oklahoma’s nondiscrimination laws related to employment have only a narrow exemption allowing religious organizations to hire co-religionists.
Protections for Religious Exercise in State of Emergency:
3
/5
Oklahoma law provides that religious worship can only be prohibited or restricted by an emergency order that (a) applies equally to all “essential” secular entities in the jurisdiction, (b) serves a compelling governmental interest, and (c) is narrowly tailored.
Blaine Amendment:
-5
/5
The Oklahoma Constitution contains a Blaine Amendment that broadly restricts faith-based organizations’ freedom to participate in public benefit programs on the same terms as similarly situated secular institutions. Current U.S. Supreme Court precedent has rendered this language ineffective, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
0
/5
Oklahoma’s nonprofit corporation law mentions the option for nonprofit corporations to incorporate for religious purposes. However, the law lacks both: (a) specific provisions to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs and (b) an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
3
/5
Oklahoma law permits a director, in the fulfillment of the director’s fiduciary duties, to rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter, but does not expressly allow a director to rely on guidance from religious figures within his or her faith tradition.
Charitable Registration Law:
5
/5
Oklahoma generally requires charitable solicitation registration but provides a broad, automatic exemption for religious organizations.
Audit Requirements Pursuant to Charitable Registration:
5
/5
Oklahoma does not require the submission of reviewed or audited financials as a condition of maintaining authorization to fundraise in the state.
Corporate Income Tax:
5
/5
Oklahoma imposes a corporate income tax but generally provides automatic exemptions to organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-3
/5
Oklahoma imposes a sales and use tax on religious organizations’ sales and only provides exemptions for churches.
Sales and Use Tax, Purchases:
-3
/5
Oklahoma imposes a sales and use tax on religious organizations’ purchases and only provides exemptions for churches.
Property Tax:
3
/5
Oklahoma imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
