Proposal would set duties and loan limits for charitable nonprofit leaders

The proposal would require charitable nonprofit directors and officers to act in good faith, in the corporation’s best interest, and with ordinary care. It covers nonprofit, nonstock corporations that qualify for federal tax exemption under 501(c)(3) or are organized for those purposes. The text sets November 1, 2026, as the effective date, but the governor vetoed the measure on May 12, 2026, so it did not take effect through this measure.

The proposal would bar a charitable nonprofit from lending money to, or guaranteeing a debt for, certain people and organizations. The restriction covers a director, a related organization, and the director’s spouse, parents, children, children’s spouses, siblings, and siblings’ spouses. A borrower would remain liable for a prohibited loan, and directors who approved it would be jointly and individually liable for repayment. The text sets November 1, 2026, as the effective date, but the governor vetoed the measure on May 12, 2026, so it did not take effect through this measure.

The proposal would let the Attorney General or a district attorney accept a court-approved agreement instead of starting or continuing an enforcement case. This applies to cases enforcing the Oklahoma Solicitation of Charitable Contributions Act. A district court would have to approve the agreement before it took effect. It could require the person to stop the violation and could include costs, penalties, repayment to contributors or charities, or other terms. Court approval would be required before the agreement took effect. The text sets November 1, 2026, as the effective date, but the governor vetoed the measure on May 12, 2026.