Out of 51 U.S. jurisdictions, Maine ranks #46 overall for its friendliness towards faith-based nonprofit organizations, making it one of the worst states in which to operate a faith-based nonprofit. Maine has some 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. Additionally, Maine has a broad exemption to charitable solicitation registration requirements for religious organizations and no audit requirements. Maine, however, has several policies that are burdensome to faith-based nonprofits operating in the state, such as laws regarding public accommodations that include no meaningful religious exemptions and no RFRA.
Religious Freedom:
State Constitutional Protection of Free Exercise:
3
/5
The Maine Constitution has been interpreted by the Maine Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment.
State Religious Freedom Restoration Act:
-5
/5
Maine 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
Maine’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
Maine’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
Maine law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
3
/5
The Maine 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.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
-3
/5
Maine’s nonprofit corporation law lacks: (a) specific provisions permitting the formation of nonprofit religious corporations; (b) specific protections for religious exercise at faith-based organizations, and (c) express acknowledgement of an option for nonprofits to incorporate for religious purposes.
Standards of Conduct for Directors of Religious Organizations:
3
/5
Maine law 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.
Charitable Registration Law:
5
/5
Maine generally requires charitable solicitation registration but provides a broad, automatic exemption for religious organizations.
Audit Requirements Pursuant to Charitable Registration:
5
/5
Maine does not require the submission of reviewed or audited financials as a condition of maintaining authorization to fundraise in the state.
Corporate Income Tax:
5
/5
Maine imposes a corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-3
/5
Maine 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
Maine imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions for certain items.
Property Tax:
3
/5
Maine imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
