This factor evaluates both the onerousness of state charitable registration requirements and the availability of exemptions for religious organizations.

State charitable registration requirements protect state residents who contribute to a charity. At their best, registration requirements provide healthy accountability and transparency.  

Unfortunately, in practice, charitable registration requirements have not kept up with the development of the internet, specifically the development of online donation functions and the ability for even the smallest organizations to solicit and collect donations across state lines.

As a result, in practice, charitable registration laws as currently written are often harmful for small faith-based nonprofits, diverting their scarce time and personnel resources to complicated filings that are disproportionate to the organization’s actual activity.

Until these regulations are modernized, they are obstacles, rather than allies, for faith-based nonprofits.

Below is a tier ranking of each state for this factor. Click on the state's name to open up its page, which provides more information on that particular state's overall score and relevant laws.