Out of 51 U.S. jurisdictions, New Jersey ranks #35 overall for its friendliness towards faith-based nonprofit organizations. New Jersey has some policies that facilitate the contributions of faith-based nonprofits, including a broad automatic exemption from charitable registration requirements for religious organizations. New Jersey, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as no RFRA and no legal protection for religious exercise during a state of emergency.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
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.
State Religious Freedom Restoration Act:
-5
/5
New Jersey 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 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 educational facilities operated by a religious institution.
Religious Freedom for Faith-Based Employers:
3
/5
New Jersey’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 Jersey law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
3
/5
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.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
0
/5
New Jersey’s nonprofit corporation law mentions the option for nonprofit corporations to incorporate for religious purposes. However, the law lacks both: (a) specific provisions to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs and (b) an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
0
/5
New Jersey law permits a director, in the fulfillment of the director’s fiduciary duties, to rely only on the opinions of 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.
Charitable Registration Law:
5
/5
New Jersey generally requires charitable solicitation registration but provides a broad, automatic exemption for religious organizations.
Audit Requirements Pursuant to Charitable Registration:
-3
/5
As a condition of maintaining authorization to fundraise in the state, New Jersey requires the submission of audited financials for organizations with annual contributions of more than $500,000.
Corporate Income Tax:
1
/5
New Jersey imposes a corporate income tax but offers an exemption to organizations with federal 501(c)(3) exempt status upon application.
Sales and Use Tax, Sales:
3
/5
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.
Sales and Use Tax, Purchases:
3
/5
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.
Property Tax:
3
/5
New Jersey imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
