Out of 51 U.S. jurisdictions, Oregon ranks #26 overall for its friendliness towards faith-based nonprofit organizations. Oregon has several laws that facilitate the contributions of faith-based nonprofits, including an automatic exemption from state corporate income tax for organizations that have 501(c)(3) status and strong nonprofit religious corporation laws. Additionally, Oregon has no charitable solicitation registration or audit requirements, and does not impose a state sales tax. Oregon, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a broad Blaine Amendment and a lack of a RFRA.
The Oregon 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).
Oregon’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide only narrow accommodations or exemptions to religious organizations, such as organizations classified as churches.
Oregon’s nondiscrimination laws related to employment provide strong accommodations or exemptions to generally protect the autonomy of most organizations.
Oregon’s Constitution contains a Blaine Amendment that broadly restricts faith-based organizations’ freedom to participate in public benefit programs on the same terms as similarly situated secular institutions. Current US Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
Oregon nonprofit corporation law includes certain provisions to protect religious nonprofits’ right to self-government in internal affairs in some situations, including a provision that defers to ecclesiastical law or religious doctrine in the event that the religious law or doctrine conflicts with the nonprofit corporation law to the extent required by the Constitution of the United States or the Oregon constitution.
Oregon law permits a director to rely on guidance from religious figures within his or her faith tradition in the fulfillment of the director’s fiduciary duties.
Oregon generally requires charitable solicitation registration and only exempts a subset of religious organizations, such as churches and places of worship.
Oregon imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
