Out of 51 U.S. jurisdictions, Nebraska ranks #19 overall for its friendliness towards faith-based nonprofit organizations. Nebraska 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 strong protections for directors to rely on guidance from religious figures within his or her faith tradition. 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 a Blaine Amendment, limited exemptions from state sales tax on religious organizations’ sales, and a lack of a RFRA
The Nebraska 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).
Nebraska 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, Nebraska does not receive the highest score for this factor.
Nebraska’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide only narrow accommodations or exemptions for co-religionists.
Nebraska law statutorily provides that a religious organization cannot be prohibited from operating and engaging in religious services by an emergency order to a greater extent than the state restricts other organizations or businesses from operating during a state of emergency, as required by Tandon v. Newsom.
The Nebraska 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.
Nebraska nonprofit corporation law includes a provision that defers to ecclesiastical law or religious doctrine in the event that the religious law or doctrine conflicts with the nonprofit corporation law to the extent required by the Constitution of the United States or the Nebraska constitution.
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.
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.
Nebraska imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
