Vermont ranks #33 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations. Vermont 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 statewide charitable registration or audit requirements to solicit donations in the state. Vermont, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as nondiscrimination laws regarding public accommodations and employment that include only narrow exemptions for religious organizations and a lack of a RFRA.
The Vermont 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).
Vermont’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide only narrow accommodations or exemptions related to the celebration or solemnization of a marriage.
Vermont’s nondiscrimination laws related to employment provide strong accommodations or exemptions to generally protect the autonomy of most religious organizations.
The Vermont 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.
Vermont 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.
Vermont 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.
Vermont imposes a sales and use tax on religious organizations’ sales but a broad and comprehensive, entity-based tax exemption for 501(c)(3) religious organizations’ sales is generally available for organizations whose gross sales do not exceed a certain dollar amount per year.
Vermont 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.
Vermont imposes property tax and provides only fragmented property tax exemptions that apply only to a narrow category of religious and/or charitable property uses, such as churches, schools, hospitals, and related outbuildings.
