In a third unanimous decision of the day, the Supreme Court ruled in favor of granting a tax exemption to a Wisconsin Catholic charity that could reshape how religiously-affiliated nonprofits nationwide are treated under the law, per the AP. The ruling addresses whether charitable work rooted in faith deserves the same legal protections as more traditional religious activities, and reverses a state court decision that found the group's services too secular to merit the same treatment as the Catholic Church.
Catholic Charities Bureau, a charitable branch of a Catholic diocese that offers community services like support for people with disabilities and mental health issues, had long paid into Wisconsin's unemployment tax program, reports the Washington Post. It requested an exemption in 2016 for four of its programs but was denied by Wisconsin's Supreme Court. The state court argued that the nonprofit's activities, though motivated by religion, could just as easily be carried out by secular organizations.
Catholic Charities took the case to the Supreme Court, arguing that the state was infringing on religious freedom by scrutinizing how the charity organizes its work. The group's lawyers said their charity work is a religious activity—even if services are extended to all, not just Catholics, and without efforts to convert recipients. The case drew backing from the Trump administration, which argued the state had misread the relevant law and warned of potential effects on federal statutes.
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At oral arguments, justices from across the spectrum raised concerns that the charity was being penalized simply because it doesn't proselytize in the course of delivering aid. The Supreme Court's decision could shape how states and the federal government grant tax-exempt status to religiously affiliated nonprofits, including large Catholic hospital networks.
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