SB 844 a Bad Fit for Oklahoma

Many people know that being in the workforce today – much less the nonprofit workforce – requires wearing many hats. And I’ve worn my fair share even before I joined the Oklahoma Center for Nonprofits 15 years ago – my early days in corporate, years of volunteerism and service on more than 30 boards, time as a mother and later a grandmother, and more. In addition to giving back to our state through service, my family also makes it a priority to be as generous as we are able and sometimes get to wear the hat of “donor.”

However, no matter which persona’s thinking cap I put on, I can’t make sense of Senate Bill 844.

Dubbed the “Safeguarding Endowment Gifts Act,” SB 844 actually adds duplicative layers of unnecessary regulation to charitable endowments. As the long-time leader of a state association with nearly 1,000 nonprofit members – including some of the nation’s largest foundations that have managed millions in endowments for decades right here in Oklahoma – SB 844 is a one-size-fits-all solution brought by an out-of-state interest group in search of a problem.

Since this is a template bill, it makes sense that the bill language could apply better in other states; however, it is unnecessary in Oklahoma. Should an Oklahoma donor have an objection to how charitable endowment dollars are allocated to the point legal action is required, he or she already has not one, but two remedies: through the Attorney General’s office or through the court system. (The Oklahoma Uniform Prudent Management of Institutional Funds Act together with the Oklahoma Charitable Fiduciary Act govern how charitable endowments are to be managed by a fiduciary.)

Not only is this bill being brought to the State Capitol by an out-of-state interest group with no published ties to Oklahoma, it is important to note that Oklahomans are not requesting this bill. In addition to widespread opposition among statewide foundations and nonprofits, the Center has been unable to identify any potentially affected donors or charitable institutions who are asking for this bill – particularly any support actually based here in Oklahoma.

What’s the real agenda here?

Some Oklahomans may be surprised to learn that our state is home to some of the nation’s largest foundations that have managed millions in endowments for decades right here at home, and the dozens we have spoken to about this bill are unanimously in opposition.

Most importantly, no Oklahoma donors are asking for this bill, and no one involved in the legislation can cite Oklahoma cases to which this bill could have applied.

It’s important to distinguish that this bill is about endowments – not everyday donations but rather major investments that pay out over time. They are governed by legally binding agreements that both the donors and the holders of the endowment review, influence and sign – just like any other agreement in business.

However, SB 844 would get between Oklahoma donors and their charities of choice, violating long-standing agreements with established, local institutions that help support the food banks, education resources, health care and other charitable services that Oklahomans depend on.

In the Sooner State, we pride ourselves on being open for business, and a key part of that is fostering an environment that encourages philanthropy to help our communities thrive.

Please join me in encouraging our state legislature to oppose SB 844.

As I always say – we are stronger together!