Montana ranks #5 overall out of the 51 U.S. jurisdictions for its friendliness towards faith-based nonprofit organizations, making it one of the best states in which to operate a faith-based nonprofit. Montana has several policies that facilitate the contributions of faith-based nonprofits, including strong nonprofit religious corporation laws. Additionally, Montana has no charitable registration or audit requirements to solicit funds within the state. Montana, however, has some policies that are burdensome to faith-based nonprofits operating in the state, such as a Blaine Amendment and restrictive laws related to public programming and facilities that provide no meaningful protections for religious organizations.
Religious Freedom:
State Constitutional Protection of Free Exercise:
0
/5
The Montana 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
Montana 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, Montana does not receive the highest score for this factor.
Religious Freedom for Nonprofits with Public Programming:
-5
/5
Montana’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:
3
/5
Montana’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
Montana law provides absolute statutory protection for religious worship.
Blaine Amendment:
-5
/5
The Montana 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:
5
/5
Montana’s nonprofit corporation law includes a designated law governing the formation and operations of nonprofit religious corporations and specific provisions to protect their right to self-government in internal affairs.
Standards of Conduct for Directors of Religious Organizations:
5
/5
Montana law permits a director to rely on guidance from religious figures within his or her faith tradition in the fulfillment of the director’s fiduciary duties.
Charitable Registration Law:
5
/5
Montana has no charitable solicitation registration requirements.
Audit Requirements Pursuant to Charitable Registration:
5
/5
Montana has no charitable registration requirement, and therefore no audit requirement.
Corporate Income Tax:
1
/5
Montana imposes a corporate income tax but offers an exemption to organizations with federal 501(c)(3) exempt status upon application.
Sales and Use Tax, Sales:
5
/5
Montana does not impose sales or use tax.
Sales and Use Tax, Purchases:
5
/5
Montana does not impose sales or use tax.
Property Tax:
1
/5
Montana 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.
