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Oklahoma Legislature· SB 844Referred to Civil Judiciary

An act relating to charitable organizations, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                           STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 844           By: Daniels
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6                           AS INTRODUCED

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7   An Act relating to charitable organizations; creating

7   the Safeguarding Endowment Gifts Act; providing short

8   title; defining terms; prohibiting a charitable

8   organization from using funds in a manner

9   inconsistent with a donor-imposed restriction;

9   allowing for donor to file complaint; requiring

10  notice by charitable organization if unable to

10  fulfill endowment agreement; specifying remedies for

11  violations; prohibiting this act from violating

11  certain offices or provisions; providing for

12  codification; and providing an effective date.

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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16  SECTION 1.     NEW LAW  A new section of law to be codified

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17 in the Oklahoma Statutes as Section 302 of Title 60, unless there is
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18 created a duplication in numbering, reads as follows:
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19  This act shall be known and may be cited as the "Safeguarding

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20 Endowment Gifts Act".
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21  SECTION 2.     NEW LAW  A new section of law to be codified

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22 in the Oklahoma Statutes as Section 302.1 of Title 60, unless there
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23 is created a duplication in numbering, reads as follows:
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24  As used in this act:

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    Req. No. 139                                              Page 1
1   1. "Charitable organization" means an organization organized

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2 and operated exclusively for religious, charitable, scientific,
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3 literary, educational, or other specified purposes or for testing
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4 for public safety and that is tax exempt from federal income tax as
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5 an entity described in the Internal Revenue Code of 1986, as
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6 amended, Section 501(c)(3);
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7   2. "Charitable trust" means a trust made for the benefit of a

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8 specific charitable purpose;
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9   3. "Donor" means an individual or entity who has made a

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10 contribution of property or money to either an existing endowment
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11 fund or a new endowment fund of a charitable organization or of a
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12 charitable trust pursuant to the terms of an endowment agreement
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13 that may include donor-imposed restrictions or conditions governing
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14 the use of the contribution;
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15  4. "Donor-imposed restriction" means a written statement within

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16 an endowment agreement that specifies obligations on the management
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17 or purpose of the endowment fund;
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18  5. "Endowment agreement" means a written agreement between a

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19 charitable organization and a donor or between a charitable trust
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20 and a donor regarding the contribution made by the donor and
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21 accepted by the charitable organization or the charitable trust,
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22 which may include donor-imposed restrictions or other conditions
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23 governing the use of the contribution;
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    Req. No. 139                           Page 2
1       6. "Endowment fund" means an institutional fund or part thereof

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2 that, under the terms of a gift instrument, is not wholly expendable
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3 by the institution on a current basis. The term does not mean
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4 assets that an institution designates as an endowment fund for its
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5 own use;
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6       7. "Gift instrument" means a record or records, including an

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7 institutional solicitation, under which property is granted to,
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8 transferred to, or held by an institution as an institutional fund;
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9       8. "Legal representative" means the administrator or executor

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10 of a person's estate, a surviving spouse if a court judgment has
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11 settled the accounts of the estate, or a person designated in an
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12 endowment agreement, whether or not born at the time of such
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13 designation, to act in place of a party to the agreement for all
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14 matters expressed in the agreement and all of the actions it
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15 contemplates, including, without limitation, interpreting,
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16 performing, enforcing, and defending the validity of the agreement;
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17 and
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18      9. "Property" means real property, personal property or money,

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19 digital assets, stocks, bonds, or any other asset or financial
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20 instrument.
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21      SECTION 3.  NEW LAW  A new section of law to be codified

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22 in the Oklahoma Statutes as Section 302.2 of Title 60, unless there
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23 is created a duplication in numbering, reads as follows:
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    Req. No. 139                                               Page 3
1   A. Unless otherwise specified by federal or state law, no

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2 charitable organization that accepts a contribution pursuant to a
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3 written donor-imposed restriction may violate the terms of that
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4 restriction without penalty.
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5   B. If a charitable organization violates a donor-imposed

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6 restriction contained in an endowment agreement, the donor, or that
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7 person's legal representative, ninety (90) days after notification
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8 to the charitable organization, may file a complaint within six (6)
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9 years after discovery for breach of such agreement. The complaint
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10 may be filed in a court of general jurisdiction in the county where
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11 a charitable organization named as a party has its principal place
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12 of business for carrying out its charitable activities, or in a
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13 court of the United States whose district includes such county. The
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14 complaint may be filed regardless of whether the agreement expressly
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15 reserves a right to use or enforce and it shall not seek a judgment
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16 awarding damages to the plaintiff.
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17  C. In the event a charitable organization is unable to fulfill

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18 a term of an endowment agreement, the donor or donor's legal
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19 representative shall be notified within thirty (30) days in advance
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20 and offered an alternative solution that closely matches the initial
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21 term in the endowment agreement.
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22  D. A charitable organization may obtain a judicial declaration

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23 of rights and duties expressed in an endowment agreement containing
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24 donor restrictions as to all of the actions the agreement
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    Req. No. 139                                              Page 4
1 contemplates, including, without limitation, the interpretation,
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2 performance, and enforcement of the agreement and determination of
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3 its validity. The charitable organization shall seek such
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4 declaration in any suit brought under this section or by filing a
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5 complaint.
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6   E. If the court determines that a charitable organization

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7 violated a donor-imposed restriction in an endowment agreement, the
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8 court may order one or more remedies consistent with the charitable
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9 purposes expressed in the endowment agreement. The court shall not
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10 order the return of donated funds to the donor or the donor's legal
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11 representative.
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12  F. Nothing in this act shall affect the authority of the Office

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13 of the Attorney General to enforce any restriction in an endowment
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14 agreement, limit the application of the judicial power of cy pres,
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15 or alter the right of an institution to modify a restriction on the
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16 management, investment, purpose, or use of an endowment fund in a
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17 manner permitted by the endowment agreement, by the Uniform Prudent
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18 Management of Institutional Funds Act, or by the Oklahoma Charitable
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19 Fiduciary Act.
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20  SECTION 4. This act shall become effective November 1, 2025.

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22  60-1-139        MR  1/19/2025 5:44:30 AM

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    Req. No. 139                                             Page 5
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