Out of 51 U.S. jurisdictions, North Carolina ranks #21 overall for its friendliness towards faith-based nonprofit organizations. North Carolina has several policies that facilitate the contributions of faith-based nonprofits: North Carolina has no audit requirements for religious organizations to solicit donations in the state and no Blaine Amendment. North Carolina, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as laws related to employment with no meaningful accommodations for religious organizations and the lack of a state RFRA.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The North Carolina 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:
-3
/5
North Carolina has not enacted a RFRA.
Religious Freedom for Nonprofits with Public Programming:
5
/5
North Carolina has no nondiscrimination laws related to public programming and facilities.
Religious Freedom for Faith-Based Employers:
-5
/5
North Carolina’s nondiscrimination laws related to employment include no meaningful accommodations or exemptions to protect the autonomy of religious employers.
Protections for Religious Exercise in State of Emergency:
-3
/5
North Carolina law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
3
/5
The North Carolina 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:
3
/5
North Carolina’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
North Carolina law permits a director, in the fulfillment of the director’s fiduciary duties, to 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:
3
/5
North Carolina generally requires charitable solicitation registration but, upon application, generally provides religious organizations with a registration exemption.
Audit Requirements Pursuant to Charitable Registration:
5
/5
North Carolina does not require the submission of reviewed or audited financials as a condition of maintaining authorization to fundraise in the state.
Corporate Income Tax:
1
/5
North Carolina 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
North Carolina imposes a sales and use tax on religious organizations’ sales and only provides limited exemptions.
Sales and Use Tax, Purchases:
3
/5
North Carolina 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
North Carolina imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
