West Virginia ranks #41 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations. West Virginia 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. West Virginia, however, has several policies that are burdensome to faith-based nonprofits operating in the state, such as sales tax with no meaningful exemptions on religious organizations’ sales, a burdensome audit requirement to maintain charitable solicitation registration, and laws regarding public accommodations and employment that include no meaningful exemptions for religious organizations.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The West Virginia 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
West Virginia 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, West Virginia does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
West Virginia’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:
-5
/5
West Virginia’s nondiscrimination laws related to employment include no meaningful accommodations or exemptions to protect the autonomy of religious employers.
Protections for Religious Exercise in State of Emergency:
-3
/5
West Virginia law has no explicit constitutional or statutory protections for religious exercise during a time of emergency.
Blaine Amendment:
3
/5
The West Virginia 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
West Virginia’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
West Virginia 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:
0
/5
West Virginia generally requires charitable solicitation registration and only provides a religious exemption to entities that are not required to file Form 990, such as organizations classified as churches, religious orders, etc.
Audit Requirements Pursuant to Charitable Registration:
-5
/5
As a condition of maintaining authorization to fundraise in the state, West Virginia requires the submission of reviewed or audited financials even for organizations with annual contributions of $500,000 or less.
Corporate Income Tax:
5
/5
West Virginia imposes a corporate income tax but automatically exempts organizations with federal 501(c)(3) exempt status.
Sales and Use Tax, Sales:
-5
/5
West Virginia imposes a sales and use tax on religious organizations’ sales and provides no meaningful exemption.
Sales and Use Tax, Purchases:
3
/5
West Virginia 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.
Property Tax:
3
/5
West Virginia imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
