Out of 51 U.S. jurisdictions, Nebraska ranks #13 overall for its friendliness towards faith-based nonprofit organizations. Nebraska 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 figures. Additionally, Nebraska has no charitable solicitation registration or audit requirements. Nebraska, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as the presence of a broad Blaine Amendment and the lack of a state RFRA.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Nebraska 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:
-5
/5
Nebraska 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
Nebraska’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities but provide strong accommodations or exemptions.
Religious Freedom for Faith-Based Employers:
5
/5
Nebraska’s nondiscrimination laws related to employment are narrow and generally would not jeopardize the autonomy of religious organizations.
Protections for Religious Exercise in State of Emergency:
-3
/5
Nebraska law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-5
/5
The Nebraska Constitution contains a Blaine Amendment that broadly restricts the ability of faith-based organizations to participate in public benefit programs on the same terms as similarly situated secular institutions. Current U.S. 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:
0
/5
Nebraska’s nonprofit corporation law acknowledges the ability of nonprofit corporations to incorporate for religious purposes but does not include specific provisions to protect religious nonprofits’ right to self-government in internal affairs or an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
5
/5
Nebraska 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
Nebraska has no charitable solicitation registration requirements.
Audit Requirements Pursuant to Charitable Registration:
5
/5
Nebraska has no charitable registration requirement, and therefore no audit requirement.
Corporate Income Tax:
5
/5
Nebraska imposes a statewide corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-3
/5
Nebraska 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
Nebraska 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.
Property Tax:
3
/5
Nebraska imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
