Out of 51 U.S. jurisdictions, California ranks #32 overall for its friendliness towards faith-based nonprofit organizations. California has some policies that facilitate the contributions of faith-based nonprofits, including strong protections for directors to rely on guidance from religious figures, as well as the most comprehensive and protective nonprofit religious corporation laws in the nation. California, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a broad Blaine Amendment, no RFRA, and laws regarding public accommodations that include no meaningful exemptions for religious organizations.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The California 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:
-5
/5
California has not enacted a RFRA and has enacted nondiscrimination laws that conflict with the beliefs of many religious organizations.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
California’s 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
California’s 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
California law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-5
/5
The California Constitution contains a Blaine Amendment that broadly restricts faith-based organizations’ freedom to participate in public benefit programs on the same terms as similarly situated secular institutions. Current U.S. Supreme Court precedent has rendered this language ineffective, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
5
/5
California’s 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
California 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
California generally requires charitable solicitation registration, but California domestic nonprofit religious corporations receive an automatic exemption. Out-of-state religious organizations may apply for an exemption, which is granted at the attorney general’s discretion.
Audit Requirements Pursuant to Charitable Registration:
-1
/5
As a condition of maintaining authorization to fundraise in the state, California requires the submission of reviewed or audited financials for organizations with annual contributions of $2 million or more.
Corporate Income Tax:
1
/5
California 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:
-3
/5
California imposes a sales and use tax on religious organizations’ sales and only provides limited exemptions for certain items.
Sales and Use Tax, Purchases:
-5
/5
California imposes a sales and use tax on religious organizations’ purchases and provides no meaningful exemptions.
Property Tax:
3
/5
California imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
