Out of 51 U.S. jurisdictions, Idaho ranks #16 overall for its friendliness towards faith-based nonprofit organizations. Idaho has several laws that facilitate the contributions of faith-based nonprofits, including an automatic exemption from state corporate income tax for religious organizations that have 501(c)(3) status and strong protections for directors to rely on guidance from religious figures. Additionally, Idaho has no charitable solicitation registration or audit requirements. Idaho, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a broad Blaine Amendment and nondiscrimination laws regarding public accommodations and employment that include very limited exemptions for religious organizations.
The Idaho 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).
Idaho 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 the RFRA is a statute rather than a state constitutional provision, Idaho does not receive the highest score for this factor.
Idaho’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide accommodations or exemptions but only for only a narrow spectrum of religious organizations.
The Idaho 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 US Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
Idaho nonprofit corporation law includes certain provisions to protect religious nonprofits’ right to self-government in internal affairs in some situations, including a provision that defers to ecclesiastical law or religious doctrine in the event that the religious law or doctrine conflicts with the nonprofit corporation law to the extent required by the Constitution of the United States or the Idaho constitution.
Idaho 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.
Idaho imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions for a narrow subset of religious organizations.
Idaho imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
