New Hampshire ranks #7 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations, making it one of the best places to operate a faith-based nonprofit in the United States. New Hampshire 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 statutory protection of religious worship. Additionally, New Hampshire does not impose a state sales tax. New Hampshire, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment and a lack of RFRA.
The New Hampshire Constitution has been interpreted by the New Hampshire Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment (as currently interpreted by the US Supreme Court).
New Hampshire’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities but provide accommodations or exemptions for most religious organizations
New Hampshire’s nondiscrimination laws related to employment protect religious freedom by excluding organizations operated exclusively for religious purposes from the definition of “employer.”
The New Hampshire 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.
New Hampshire nonprofit corporation law includes certain provisions to protect religious nonprofits’ right to self-government in internal affairs in some situations but does not include comprehensive laws specific to nonprofit religious corporations.
New Hampshire law is silent as to whether a director of a nonprofit, in the fulfillment of the director’s fiduciary duties, may rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter, and the law does not expressly permit a director to rely on guidance from religious figures within his or her faith tradition.
New Hampshire charitable solicitation law contains exemptions only for entities that are not required to file Form 990, such as organizations classified as churches, religious orders, etc.
As a condition of maintaining authorization to fundraise in the state, New Hampshire requires the submission of reviewed or audited financials for organizations with annual revenue, gains, and other support of $2 million or more.
New Hampshire imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
