Out of 51 U.S. jurisdictions, Oklahoma ranks #35 overall for its friendliness towards faith-based nonprofit organizations. Oklahoma has several laws 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, nondiscrimination laws regarding public accommodations that include no meaningful exemptions for religious organizations, and very limited exemptions to state sales tax on religious organizations’ sales and purchases.
The Oklahoma Constitution follows in “lockstep” with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment (as currently interpreted by the US Supreme Court).
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 the RFRA is a statute rather than a state constitutional provision, Oklahoma does not receive the highest score for this factor.
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.
Oklahoma law provides that free exercise of religion can only be substantially burdened 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.
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 in many cases, but it could become effective in the future if Court precedent changes.
Oklahoma nonprofit corporation law does not have any law deferring to religious beliefs and structures in governance matters and does not have any special provisions specific to the internal governance or operations of religious organizations.
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.
Oklahoma imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
