Out of 51 U.S. jurisdictions, Rhode Island ranks #33 overall for its friendliness towards faith-based nonprofit organizations. Rhode Island has some policies 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. Rhode Island, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as laws regarding public accommodations that include no meaningful exemptions for religious organizations and sales tax with no meaningful exemptions on religious organizations’ sales.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Rhode Island 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
Rhode Island has enacted a RFRA that protects the religious free exercise of all individuals and entities by requiring government burdens on religious exercise to satisfy strict scrutiny. Since these protections originate in a statute rather than the state constitution, Rhode Island does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
Rhode Island’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Religious Freedom for Faith-Based Employers:
-3
/5
Rhode Island’s nondiscrimination laws related to employment have only a narrow exemption allowing religious organizations to hire co-religionists.
Protections for Religious Exercise in State of Emergency:
-3
/5
Rhode Island law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
3
/5
The Rhode Island 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
Rhode Island’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:
3
/5
Rhode Island 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
Rhode Island generally requires charitable solicitation registration but, upon application, generally provides religious organizations with a registration exemption.
Audit Requirements Pursuant to Charitable Registration:
-3
/5
As a condition of maintaining authorization to fundraise in the state, Rhode Island requires the submission of audited financials from organizations with annual contributions of more than $500,000.
Corporate Income Tax:
5
/5
Rhode Island imposes a corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-5
/5
Rhode Island generally imposes a sales and use tax on religious organizations’ sales and provides no meaningful exemptions.
Sales and Use Tax, Purchases:
3
/5
Rhode Island generally imposes a sales and use tax on religious organizations’ purchases but provides a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ purchases upon application.
Property Tax:
1
/5
Rhode Island imposes property tax and provides only fragmented property tax exemptions that include only a narrow subset of religious organizations, such as churches, or that apply only to a narrow category of religious and/or charitable property uses.
