Out of 51 U.S. jurisdictions, Washington ranks #29 overall for its friendliness towards faith-based nonprofit organizations. Washington has some policies that facilitate the contributions of faith-based nonprofits, including specific provisions in the nonprofit corporation laws to protect the right of nonprofits incorporated for religious purposes to self-government in internal affairs. Washington, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a broad Blaine Amendment and no RFRA.
Religious Freedom:
State Constitutional Protection of Free Exercise:
3
/5
The Washington Constitution has been interpreted by the Washington Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment.
State Religious Freedom Restoration Act:
-5
/5
Washington has not enacted a RFRA and has enacted nondiscrimination laws that conflict with the beliefs of many religious organizations.
Religious Freedom for Nonprofits with Public Programming:
-3
/5
Washington’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide accommodations or exemptions but only for a narrow spectrum of religious organizations, such as educational facilities operated by a religious institution.
Religious Freedom for Faith-Based Employers:
3
/5
Washington’s nondiscrimination laws related to employment are broad but provide strong accommodations or exemptions to generally protect the autonomy of the vast majority of religious organizations.
Protections for Religious Exercise in State of Emergency:
-3
/5
Washington law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
-5
/5
The Washington 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 U.S. Supreme Court precedent has rendered this language ineffective, but it could become effective in the future if Court precedent changes.
Regulatory Freedom:
Nonprofit Religious Corporation Act:
3
/5
Washington’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:
0
/5
Washington law permits a director, in the fulfillment of the director’s fiduciary duties, to rely only on the opinions of individuals retained by the corporation, and does not expressly allow a director to rely on guidance from religious figures within his or her faith tradition.
Charitable Registration Law:
3
/5
Washington generally requires charitable solicitation registration but offers a narrow automatic exemption for certain religious organizations, such as churches.
Audit Requirements Pursuant to Charitable Registration:
-1
/5
As a condition of maintaining authorization to fundraise in the state, Washington requires the submission of reviewed or audited financials for organizations with annual contributions greater than $1 million.
Corporate Income Tax:
-3
/5
Washington imposes a statewide business and excise tax, provides no automatic exemptions, and offers only fragmented exemptions upon application.
Sales and Use Tax, Sales:
-3
/5
Washington imposes a sales and use tax on religious organizations’ sales and only provides limited exemptions.
Sales and Use Tax, Purchases:
-3
/5
Washington imposes a sales and use tax on religious organizations’ purchases and only provides limited exemptions.
Property Tax:
1
/5
Washington imposes property tax and provides only fragmented property tax exemptions that include only a narrow subset of religious organizations or that apply only to a narrow category of religious and/or charitable property uses.
