Maryland ranks #45 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations, making it one of the worst places to operate a faith-based nonprofit in the United States. Maryland has some policies that facilitate the contributions of faith-based nonprofits, including offering a broad exemption from charitable registration requirements to most religious organizations upon application and has not enacted a Blaine Amendment. Maryland, however, has several laws that are burdensome to faith-based nonprofits operating in the state, such as a burdensome audit requirement to maintain charitable solicitation registration, nondiscrimination laws regarding public accommodations that include no meaningful exemptions for religious organizations, and a lack of a RFRA.
The Maryland 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).
Maryland’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Maryland’s nondiscrimination laws related to employment provide strong accommodations or exemptions to generally protect the autonomy of most religious organizations.
The Maryland 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.
Maryland 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.
Maryland 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.
As a condition of maintaining authorization to fundraise in the state, Maryland requires the submission of reviewed or audited financials for organizations with annual contributions of more than $300,000.
Maryland 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.
Maryland imposes property tax and provides only fragmented property tax exemptions for properties owned by religious groups and used exclusively for religious worship, parsonages and convents, or educational purposes.
