The idea of institutional religious freedom has become increasingly controversial, especially in the United States, and pressure for such freedom has been growing. The notion that institutions, including commercial ones, can have religious freedom rights has been described as unprecedented. However, the notion of such religious freedom has deep historical roots in a wide range of settings, is deeply intertwined with the growth of free societies, and is tied to the nature of religions themselves. This also applies to religious commercial institutions, which are far more widespread than commonly recognized. I focus particularly on what is it about such institutions that needs protecting and emphasize that what is central is the particular practice that typifies the organization. It needs the freedom to be what it is and to live out a religious commitment. If this calling is denied or subverted, then the institution loses its raison d’être. One of the principal reasons for forbidding government discrimination on matters such as religion is precisely so that private institutions will be able to appropriately employ staff and carry out policies according to their own particular beliefs as to what supports their distinctive mission. Governmental neutrality is intended to be a foundation for a lively and diverse societal pluralism, not for society to become a mirror of the government itself.