New Hampshire ranks #12 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations. New Hampshire 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. Additionally, New Hampshire does not impose a state sales or use tax. New Hampshire, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as the presence of a Blaine Amendment and the lack of a state RFRA.
Religious Freedom:
State Constitutional Protection of Free Exercise:
3
/5
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.
State Religious Freedom Restoration Act:
-5
/5
New Hampshire 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:
3
/5
New Hampshire’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities but provide accommodations or exemptions for the vast majority of religious organizations.
Religious Freedom for Faith-Based Employers:
3
/5
New Hampshire’s nondiscrimination laws related to employment are broad but provide strong accommodations or exemptions to generally protect the autonomy of the vast majority of religious organizations.
Protections for Religious Exercise in State of Emergency:
3
/5
New Hampshire law provides absolute statutory protection for religious worship.
Blaine Amendment:
-3
/5
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, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
3
/5
New Hampshire’s nonprofit corporation law expressly: (a) acknowledges an option for nonprofit corporations to incorporate for religious purposes and (b) includes specific provisions to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs. The law does not include an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
-3
/5
New Hampshire law is silent as to whether a director, 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.
Charitable Registration Law:
0
/5
New Hampshire generally requires charitable solicitation registration and only exempts entities that are not required to file Form 990, such as organizations classified as churches, religious orders, etc.
Audit Requirements Pursuant to Charitable Registration:
-1
/5
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 contributions of $2 million or more.
Corporate Income Tax:
5
/5
New Hampshire imposes a corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
5
/5
New Hampshire does not impose sales or use tax.
Sales and Use Tax, Purchases:
5
/5
New Hampshire does not impose sales or use tax.
Property Tax:
3
/5
New Hampshire imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
