Out of 51 U.S. jurisdictions, New Jersey ranks #41 overall 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. New Jersey has some policies that facilitate the contributions of faith-based nonprofits, including a broad exemption from charitable registration requirements for religious organizations upon application. New Jersey, however, has several laws that are burdensome to faith-based nonprofits operating in the state, such as nondiscrimination laws that generally restrict religious freedom for organizations that offer public accommodations as well as a lack of both a RFRA and of legal protection for religious exercise during a state of emergency.
The New Jersey 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).
New Jersey’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide accommodations or exemptions but only for a narrow spectrum of religious organizations, such as churches and educational facilities operated by a religious institution.
New Jersey’s nondiscrimination laws related to employment provide strong accommodations or exemptions to generally protect the autonomy of most religious organizations.
The New Jersey 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.
New Jersey 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.
New Jersey law permits a director, in the fulfillment of the director’s fiduciary duties, to rely only on the opinions of certain individuals retained by the corporation and 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, New Jersey requires the submission of audited financials for organizations with annual gross revenue of more than $1,000,000.
New Jersey imposes a sales and use tax on religious organizations’ sales but generally provides a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ sales upon application.
New Jersey 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.
New Jersey imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
