States Vary Widely in Their Laws Governing Faith-Based Nonprofits
Faith-based nonprofits across the United States face a patchwork of laws and regulations affecting their operation, as outlined in a recent report. The 2025 Faith and Freedom Index has shed light on which states provide supportive environments for these organizations and which do not.
The 2025 Faith and Freedom Index, published by the Napa Legal Institute, evaluates states on a scale of 0-100 based on protections for religious nonprofits. This assessment comprises a “religious freedom score” and a “regulatory freedom score,” which together determine each state’s overall standing.
Frank DeVito, Senior Counsel and Director of Content for the Napa Legal Institute, emphasized the report’s utility for policymakers. He described the index as a “powerful tool for lawmakers to see where they must add protections, strengthen existing state laws, or repeal harmful state laws.”
Several criteria contribute to a state’s religious freedom score, including constitutional safeguards for free exercise, the presence of a Religious Freedom Restoration Act, and specific conditions affecting faith-based employers and nonprofits. States are also reviewed for their conduct during state emergencies and for existing Blaine Amendments.
Michigan, Vermont, Delaware, Washington, and Maryland scored the lowest in terms of religious freedom, with scores of 22%, 23%, 25%, 26%, and 27%, respectively. The Napa Legal Institute highlighted Michigan and Washington as states that particularly “over-burden and are even hostile towards faith-based nonprofits” in their statement.
Conversely, Alabama, with a top score of 86%, and Kansas, scoring 79%, were lauded for their robust support of faith-based nonprofits. Other states recognized for high religious freedom scores include Mississippi and Georgia, both at 67%, and Florida at 63%. DeVito noted that “the many religious freedom attacks over the past few years” underscore the need for strong protections at the state level.
In terms of regulatory freedom, Indiana and Montana led with scores of 82% and 80%, respectively. Iowa and Arizona followed, scoring 79% and 77%. Texas and Wyoming shared the fifth spot, each scoring 76%. In contrast, Illinois, with a score of 40%, along with Michigan, Massachusetts, South Dakota, and Washington, ranked lower on this scale.
Factors considered in regulatory freedom scores include nonprofit religious corporation law, consent requirements for corporate actions, director standards, and tax exemptions. The overall scores saw Alabama and Kansas leading with 72% and 69%, closely followed by Indiana, Texas, and Mississippi.
Alabama received praise for its “strong constitutional protections for free exercise of religion” and other supportive measures, such as automatic tax exemptions for organizations with federal 501(c)(3) status. On the flip side, Michigan’s comprehensive Blaine Amendment and strict nondiscrimination laws were criticized for hindering religious groups.
This article was originally written by www.christianpost.com
