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The following guidelines provide background information on the most common types of filings and the related exemptions in Oregon.
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In this state, religious organizations are automatically exempt from charitable registration requirements. The religious exemption is not limited to organizations such as churches that do not have to file the IRS Form 990.
If your organization is required to register to solicit for donations in Oregon, you may wish to consider registering through the Unified Registration Statement, which is a standardized charitable registration accepted in many states. As described in the introduction, using the URS, rather than a state-specific registration form, has pros and cons. The URS typically must be submitted by mail.
Some states require organizations to appoint a “registered agent” in the state as part of the organization’s charitable registration. This state does not currently have this requirement.
This state does not require organizations to post specific language when conducting charitable solicitations unless the organization is working with a professional fundraiser. See Or. Rev. Stat. § 128.824 (more broadly §§ 128.801 to 128.898).
However, if an organization chooses to state in a solicitation that it is registered with the state attorney general, the organization must also state, immediately following and in equal prominence, that the registration does not indicate that the attorney general approves or endorses the organization. See Or. Rev. Stat. § 128.891. An out-of-state organization may not use an in-state address in some cases. See Or. Rev. Stat. § 128.893.
This jurisdiction requires foreign nonprofit organizations not eligible for the exemption to register with the secretary of state as a business before the organizations can complete their charitable solictation registration. See Or. Rev. Stat. § 65.701
In this state, most organizations which have received federal income tax exemption under IRC § 501(c)(3) are automatically exempt from state income tax. Some organizations may choose to send a copy of their IRS determination letter to the state department of revenue to indicate the organization’s position that it qualifies for the exemption. Although an organization may be exempt, if it has unrelated business taxable income (UBTI) that is subject to federal taxation, that UBTI will be subject to Oregon’s income tax. See Or. Rev. Stat. § 317.920. If UBTI exceeds $750,000, registration for the unique-to-Oregon Corporate Activity Tax may be requrired.
It is also important to consider whether applying for property tax exemption would be appropriate for your organization. More information regarding Oregon property tax exemption is available on the Oregon Department of Revenue webpage and Or. Rev. Stat. § 307.130. As of January 2021, Oregon does not impose a sales and use tax. An accountant or attorney can provide answers to specific questions regarding your organization’s tax obligations and eligibility for exemptions.
This state does not have a corporate franchise tax.
Steve Elzinga
This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.
