Out of 51 U.S. jurisdictions, Connecticut ranks #36 overall for its friendliness towards faith-based nonprofit organizations. Connecticut has several laws that facilitate the contributions of faith-based nonprofits, including a RFRA statute. Connecticut, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a state sales tax with very limited exemptions on religious organizations’ sales and no legal protection for religious exercise during a state of emergency.
The Connecticut Constitution follows in lockstep with the federal constitution’s protections, meeting but not exceeding the required minimum protections of the First Amendment (as currently interpreted by the US Supreme Court).
Connecticut was the first state to enact a RFRA protecting the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since the RFRA is a statute rather than a state constitutional provision, Connecticut does not receive the highest score for this factor.
Connecticut’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide accommodations or exemptions but only for certain types of accommodations.
Connecticut’s 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.
Connecticut 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.
Connecticut 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.
As a condition of maintaining authorization to fundraise in the state, Connecticut requires the submission of audited financials for organizations with annual gross revenue of $500,000 or more.
Connecticut imposes a statewide corporate income tax but offers an exemption to organizations with federal 501(c)(3) exempt status only upon application.
Connecticut imposes a sales and use tax on a religious organizations’ purchases, but generally provides 501(c)(3) religious organizations broad and comprehensive, entity-based tax exemption upon application.
Connecticut imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
