Out of 51 U.S. jurisdictions, Kansas ranks #3 overall for its friendliness towards faith-based nonprofit organizations, making it one of the best states to operate a faith-based nonprofit in the United States. Kansas 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 a broad, automatic exemption from charitable registration requirements for religious organizations. Kansas, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment and no meaningful exemptions from state sales tax on religious organization’s sales.
The Kansas 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).
Kansas 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, Kansas does not receive the highest score for this factor.
Kansas’ nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities but provide strong accommodations or exemptions.
The Kansas Constitution contains a Blaine Amendment that could prevent the participation of faith-based schools in generally available public benefit programs on the same terms as similarly situated secular schools. This is not as broad as a general Blaine Amendment, which prohibits all aid to faith-based institutions, but is still detrimental to the work of faith-based institutions. Current U.S. Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
Kansas 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.
Kansas law permits a director, in the fulfillment of the director’s fiduciary duties, to rely only on the opinions of certain individuals selected by the corporation and 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, Kansas generally requires the submission of reviewed or audited financials for organizations with annual contributions greater than $500,000.
Kansas imposes a sales and use tax on religious organizations’ purchases but generally provides a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ purchases upon application.
Kansas imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
