Out of 51 U.S. jurisdictions, Ohio ranks #39 overall for its friendliness towards faith-based nonprofit organizations. Ohio has several laws 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 and no audit requirement to solicit donations in the state. Ohio, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment, nondiscrimination laws regarding public accommodations with only narrow exemptions for religious organizations, and a lack of a RFRA.
The Ohio Constitution has been interpreted by the Ohio Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment (as currently interpreted by the US Supreme Court).
Ohio’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide only narrow accommodations or exemptions.
The Ohio Constitution contains Blaine Amendment-type language 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 in many cases, but it could become effective in the future if Court precedent changes.
Ohio 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.
Ohio 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.
Ohio 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.
Ohio imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
