Out of 51 U.S. jurisdictions, New York ranks #20 overall for its friendliness towards faith-based nonprofit organizations. New York has several policies that facilitate the contributions of faith-based nonprofits, including a broad automatic exemption from charitable registration requirements for religious organizations and broad sales tax exemptions available upon application for religious organizations’ sales and purchases. New York, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment, no RFRA, and an audit requirement to maintain charitable solicitation registration.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The New York 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 York 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 York’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 York’s nondiscrimination laws related to employment are broad but, according to the text, provide strong accommodations or exemptions to generally protect the autonomy of the vast majority of religious organizations. Note that New York regulations may narrow the scope of these strong exemptions.
Protections for Religious Exercise in State of Emergency:
-3
/5
New York law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-3
/5
The New York 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:
0
/5
New York’s nonprofit corporation law acknowledges the ability of nonprofit corporations to incorporate for religious purposes but does not include specific provisions to protect religious nonprofits’ right to self-government in internal affairs or an option to incorporate expressly as a nonprofit religious corporation.
Standards of Conduct for Directors of Religious Organizations:
3
/5
New York law affirms the ability of a director to, in the fulfillment of the director’s fiduciary duties, rely on the opinion of individuals who can reasonably be assumed to have expertise on a certain matter, but 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 York generally requires charitable registration but has automatic broad exemptions for religious organizations.
Audit Requirements Pursuant to Charitable Registration:
-5
/5
As a condition of maintaining authorization to fundraise in the state, New York requires the submission of: (a) reviewed financials for organizations with annual revenue between $250,000 and $1 million, and (b) audited financials for organizations with annual revenue of more than $1 million.
Corporate Income Tax:
1
/5
New York imposes a statewide corporate income tax but offers exemptions to organizations with federal 501(c)(3) exempt status upon application.
Sales and Use Tax, Sales:
3
/5
New York 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 York 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 York imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
