Wisconsin ranks #44 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations, making it one of the worst places to operate a faith-based nonprofit in the United States. Wisconsin 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. Wisconsin, however, has several laws that are burdensome to faith-based nonprofits operating in the state, such as a burdensome audit requirement to maintain charitable solicitation registration, and nondiscrimination laws regarding public accommodations that include no meaningful exemptions for religious organizations, and a lack of a RFRA
The Wisconsin Constitution has been interpreted by the Wisconsin Supreme Court to provide stronger protections for religious free exercise or worship than the federal First Amendment (as currently interpreted by the US Supreme Court).
Wisconsin’s nondiscrimination laws generally restrict religious freedom for religious organizations that offer public programming and facilities and provide no meaningful religious accommodations or exemptions.
Wisconsin’s nondiscrimination laws related to employment provide exemptions that protect the religious freedom of religious organizations in some but not all employment situations.
The Wisconsin Constitution contains a Blaine Amendment that could prevent the participation of faith-based schools in generally available public benefit programs on the same terms as similarly situated secular schools. This is not as broad as a general Blaine Amendment, which prohibits all aid to faith-based institutions, but is still detrimental to the work of faith-based institutions. Current U.S. Supreme Court precedent has rendered this language ineffective in many cases, but it could become effective in the future if Court precedent changes.
Wisconsin 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.
Wisconsin 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.
As a condition of maintaining authorization to fundraise in the state, Wisconsin requires the submission of: (a) reviewed financials for organizations with annual contributions between $300,000 and $500,000, and (b) audited financials for organizations with annual contributions of more than $500,000.
Wisconsin 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.
Wisconsin imposes property tax but, upon application, generally provides an exemption to religious organizations for property used for religious and/or charitable purposes.
