Arkansas ranks #11 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations. Arkansas has several policies that facilitate the contributions of faith-based nonprofits, including a state RFRA, strong nonprofit religious corporation laws, and strong protections for directors to rely on guidance from religious figures. Arkansas, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as restrictive laws related to public programming and facilities that provide no meaningful protections for religious organizations and a lack of meaningful exemptions from sales tax on religious organizations’ sales.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Arkansas Constitution follows in lockstep with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment.
State Religious Freedom Restoration Act:
3
/5
Arkansas has enacted a RFRA that protects the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since these protections originate in a statute rather than the state constitution, Arkansas does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
Arkansas’ nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Religious Freedom for Faith-Based Employers:
3
/5
Arkansas’ nondiscrimination laws related to employment are broad but provide strong accommodations or exemptions to generally protect the autonomy of the vast majority of religious organizations.
Protections for Religious Exercise in State of Emergency:
3
/5
Arkansas law provides that religious worship can only be prohibited or restricted by an emergency order that: (a) applies equally to all “essential” secular entities in the jurisdiction, (b) serves a compelling governmental interest, and (c) is narrowly tailored.
Blaine Amendment:
3
/5
The Arkansas Constitution does not contain a Blaine Amendment but also does not expressly protect faith-based organizations’ freedom to participate in public benefit programs on the same terms as similarly situated secular institutions.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
5
/5
Arkansas’ nonprofit corporation law includes a designated law governing the formation and operations of nonprofit religious corporations and specific provisions to protect their right to self-government in internal affairs.
Standards of Conduct for Directors of Religious Organizations:
5
/5
Arkansas law permits a director to rely on guidance from religious figures within his or her faith tradition in the fulfillment of the director’s fiduciary duties.
Charitable Registration Law:
3
/5
Arkansas generally requires charitable solicitation registration but, upon application, generally provides religious organizations with a registration exemption.
Audit Requirements Pursuant to Charitable Registration:
-3
/5
As a condition of maintaining authorization to fundraise in the state, Arkansas generally requires the submission of reviewed or audited financials for organizations with annual contributions of $500,000 or more.
Corporate Income Tax:
1
/5
Arkansas imposes a corporate income tax but offers an exemption to organizations with federal 501(c)(3) exempt status upon application.
Sales and Use Tax, Sales:
-5
/5
Arkansas imposes a sales and use tax on religious organizations’ sales and provides no meaningful exemption.
Sales and Use Tax, Purchases:
-3
/5
Arkansas imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions for certain items.
Property Tax:
3
/5
Arkansas imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
