• Key Findings of the Faith & Freedom Index 2025

• States Excelling in Religious Freedom for Faith-Based Nonprofits

• States Struggling with Religious Freedom Protection

• The Role of State Laws in Shaping Religious Freedom for Nonprofits

In a recent study titled the Faith & Freedom Index 2025, the Napa Legal Institute has evaluated the state of religious freedom across the United States, specifically focusing on laws that affect faith-based nonprofits. This third edition of the report examines how well each state supports religious organizations and their operations, from charitable registration to broader constitutional protections for religious freedom. The study takes into account 15 different factors, including regulatory burdens and protections under employment law and state constitutions. The findings provide valuable insight into the current landscape of faith-friendly laws across the nation and highlight areas where progress is needed.

Key Findings of the Faith & Freedom Index 2025

The report revealed a diverse picture of religious freedom across the U.S. states, noting that some areas are leading the way in supporting faith-based organizations, while others are lagging behind in safeguarding these freedoms. While many of the states with high scores on the index are led by Republican governments, the report emphasized that the results did not always fall along partisan lines. Both liberal and conservative states have excelled or fallen short in different aspects of religious freedom protection.

Alabama and Kansas were identified as the states with the strongest protections for religious nonprofits, with the highest overall scores of 72% and 69%, respectively. These states received high marks for ensuring the free exercise of religion, having robust nondiscrimination laws, and enacting state-level Religious Freedom Restoration Acts (RFRAs). The Faith & Freedom Index noted that these states even provided stronger protections for religious practices than the First Amendment of the U.S. Constitution in some cases.

States Excelling in Religious Freedom for Faith-Based Nonprofits

According to the Faith & Freedom Index 2025, several states have made significant strides in creating an environment where faith-based nonprofits can thrive. Alabama and Kansas stand out as leaders, scoring the highest marks in this study. Both states were praised for their constitutional protections for religious free exercise or worship, which were described as stronger than federal protections under the First Amendment.

In addition to constitutional protections, these states have enacted Religious Freedom Restoration Acts at the state level, which safeguard the rights of faith-based organizations by limiting government interference in religious practices. For example, Kansas has laws in place that shield faith-based organizations from burdensome regulations, while Alabama s nondiscrimination laws provide a legal framework that ensures faith-based employers can operate freely without being forced to comply with requirements that may contradict their religious beliefs.

Other states that scored highly on the index include Indiana, Texas, and Mississippi, which rounded out the top five states for supporting religious nonprofits. These states share similar legal frameworks that prioritize the protection of religious freedom while minimizing regulatory burdens on faith-based organizations. Their strong commitment to protecting religious freedom is a positive development for nonprofits seeking to serve their communities without undue interference from government policies.

States Struggling with Religious Freedom Protection

On the opposite end of the spectrum, Michigan and Washington were identified as the lowest-ranking states for religious freedom protections. The report gave Michigan a score of just 31%, while Washington received a score of 35%. Both states were criticized for their burdensome laws, including broad Blaine Amendments and non-discrimination laws that hinder the ability of faith-based nonprofits to operate freely.

Michigan, in particular, was called out for its restrictive legal environment, which places significant constraints on religious organizations. The state s Blaine Amendment a provision that prohibits state funds from being used for religious institutions was identified as a key factor contributing to its low score. Additionally, Michigan s non-discrimination laws have been viewed as overly broad and challenging for faith-based employers to navigate, especially when their religious convictions conflict with secular workplace standards.

Similarly, Washington also received poor marks due to similar challenges, including its handling of non-discrimination laws that impact religious employers. Faith-based nonprofits in these states face significant hurdles when trying to operate in compliance with both state and federal regulations, often leading to legal battles over their rights to freely practice their faith in the public sphere.

The Role of State Laws in Shaping Religious Freedom for Nonprofits

The Faith & Freedom Index highlights the critical role that state laws play in shaping the landscape for religious nonprofits. In states with strong protections, faith-based organizations are able to flourish and provide vital services to their communities. These organizations are often on the front lines of charitable work, offering support in areas like education, healthcare, and social services. When states enact strong protections for religious freedom, they help ensure that these nonprofits can operate without fear of government overreach or legal challenges.

On the other hand, in states where religious freedom protections are weaker, faith-based organizations face greater challenges in maintaining their operations. Laws that impose unnecessary regulatory burdens or restrict religious freedoms can have a chilling effect on nonprofit activities, particularly for organizations whose mission is rooted in religious beliefs. In these states, nonprofits may be forced to either abandon their religious convictions or face legal consequences.

While some states have made notable progress in enacting laws that protect religious organizations, others are still lagging behind in ensuring that faith-based nonprofits have the freedom they need to thrive. As the Faith & Freedom Index illustrates, ongoing advocacy for religious freedom at both the state and federal levels will be crucial in securing the future of faith-based organizations across the U.S.

The Faith & Freedom Index 2025 offers an important look at the state of religious freedom protections for faith-based nonprofits across the United States. The findings suggest that while certain states, such as Alabama and Kansas, lead the way in providing strong protections for religious organizations, others, like Michigan and Washington, still have much work to do. The study underscores the importance of state-level Religious Freedom Restoration Acts and other legal protections in ensuring that faith-based organizations can operate freely and without undue interference from government regulations. As the conversation around religious freedom continues to evolve, it is essential for lawmakers to prioritize the needs of these organizations and ensure that they can continue their important work without facing unnecessary legal challenges.