Suit Challenging Iowa State Employee Charity Rules Is Settled

An Alliance Defense Fund release reported Wednesday that a settlement has been reached in Association of Faith-Based Organizations v. Anderson, a lawsuit challenging the exclusion of religious charities from the Iowa One Gift program under which state employees can designate participating charities to receive their contributions withheld by payroll deduction. (See prior posting.) The regulations, challenged on First Amendment grounds, excluded from participation any charitable organization that "engages in any way in sectarian activities," advocates "religious viewpoints," or "discriminates" on the basis of religion in employment. Under the settlement, the state Department of Administration has amended its rules so they exclude only charities that fail to comply with Iowa's ban on employment discrimination. Iowa law includes an an exemption for the faith-based hiring policies of religious employers. The Sioux City Gospel Mission, a member of the Association of Faith Based Organizations that brought the lawsuit, has already been approved to participate in the One Gift program under the new rules.