Out of 51 U.S. jurisdictions, Alaska ranks #28 overall for its friendliness towards faith-based nonprofit organizations. Alaska has several laws that facilitate the contributions of faith-based nonprofits: Alaska has an automatic exemption from state corporate income tax for religious organizations that have 501(c)(3) status, no audit requirements for religious organizations to solicit donations in the state, and no state sales tax. Alaska, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment, no RFRA, and fails to provide protections for religious exercise during a state of emergency.
The Alaska Constitution has been interpreted by the Alaska Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment (as currently interpreted by the US Supreme Court) by providing strict scrutiny review when neutral laws burden religious exercise.
Alaska’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Alaska’s nondiscrimination laws related to employment protect religious freedom by excluding religious organizations from the definition of “employer.”
The Alaska Constitution contains a Blaine Amendment that could prevent the participation of faith-based schools in generally available public benefit programs on the same terms as similarly situated secular schools. This is not as broad as a general Blaine Amendment, which prohibits all aid to faith-based institutions, but is still detrimental to the work of faith-based institutions. Current U.S. Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
Alaska nonprofit corporation law does not have any law deferring to religious beliefs and structures in governance matters and does not have any special provisions specific to the internal governance or operations of religious organizations.
Alaska law permits a director, in the fulfillment of the director’s fiduciary duties, to rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter but does not expressly allow a director to rely on guidance from religious figures within his or her faith tradition.
Alaska charitable solicitation law contains exemptions only for entities that are not required to file Form 990, such as organizations classified as churches, religious orders, etc.
Alaska imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
