There is no rule or other requirement that a tribe make use of the 7871 option. It is designed as a tool for tribes or their affiliated organizations to use if, in their opinion, it would help with their overall operations and fundraising. If a tribe wants its nonprofit entity to incorporate with the state, there is no reason they should not do so. Each tribe will need to assess the associated issues of tribal sovereignty before using the 7871 section.

One of the main ideas of this section is to make it easier for nontribal contributors to be able to contribute to tribal nonprofit organizations and have the complete assurance those contributions will be fully deductible. If that is not a concern, there may be no need to pursue it.

Looking at it from another angle, there is the much larger question of tribal sovereignty as it relates to a state government and to the question of what government body should be handling incorporation matters. If this is also not a concern, again the 7871 option might not be an appropriate route to follow.