Out of 51 U.S. jurisdictions, Idaho ranks #19 overall for its friendliness towards faith-based nonprofit organizations. Idaho has several policies 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 authorities. 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 laws regarding public accommodations and employment that include very limited exemptions for religious organizations.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Idaho 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
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 these protections originate in a statute rather than the state constitution, Idaho does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-3
/5
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.
Religious Freedom for Faith-Based Employers:
-3
/5
Idaho’s nondiscrimination laws related to employment have only a narrow exemption allowing religious organizations to hire co-religionists.
Protections for Religious Exercise in State of Emergency:
-3
/5
Idaho law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-5
/5
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, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
3
/5
Idaho’s nonprofit corporation law expressly: (a) acknowledges an option for nonprofit corporations to incorporate for religious purposes and (b) includes specific provisions to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs. The law does not include an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
5
/5
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.
Charitable Registration Law:
5
/5
Idaho has no charitable solicitation registration requirements.
Audit Requirements Pursuant to Charitable Registration:
5
/5
Idaho has no charitable registration requirement, and therefore no audit requirement.
Corporate Income Tax:
5
/5
Idaho imposes a corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-3
/5
Idaho imposes a sales and use tax on religious organizations’ sales and only provides limited exemptions for certain items.
Sales and Use Tax, Purchases:
-3
/5
Idaho imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions for a narrow subset of religious organizations.
Property Tax:
3
/5
Idaho imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
