Unlevel Playing Field: Barriers to Participation by Faith-Based and Community Organizations in Federal Social Service Programs

This report provides an overview of problems uncovered by the first ever audit of Federal programs undertaken by the newly-created Centers for Faith-Based &Community Initiatives at HHS, HUD, Education, Labor, and Justice. Because of the Centers recent vintage and limited staff, the shortened turnaround time for the report, and the extensive range of affected agency programs, the audit could not cover every potentially affected program in depth. Thus, the Centers emphasized programs that receive major funding, programs that are covered by existing Charitable Choice laws, programs characteristic of the respective departments, and programs in which participation by faith-based and other community-serving groups would be natural or especially fruitful.

Among the findings of the five Centers reports are the following:

. A funding gap exists between the government and the grassroots. Smaller groups, faith-based and secular, receive very little Federal support relative to the size and scope of the social services they provide.

. There exists a widespread bias against faith-and community-based organizations in Federal social service programs:

. Restricting some kinds of religious organizations from applying for funding.

. Restricting religious activities that are not prohibited by the Constitution.

. Not honoring rights that religious organizations have in Federal law.

. Burdening small organizations with cumbersome regulations and requirements.

. Imposing anti-competitive mandates on some programs, such as requiring applicants to demonstrate support from government agencies or others that might also be competing for the same funds.

. Legislation requires some restrictions on the full participation of faith-based organizations, but many of the regulations are needlessly burdensome administrative creations.

. Congress remedy to barriers to faith--based organizations the Federal law known as "Charitable Choice " has been almost entirely ignored by Federal administrators, who have done little to help or require State and local governments to comply with the new rules for involving faith-based providers.

. Despite these obstacles, some faith-based and community-based service groups receive financial support from the Federal Government, either by winning Federal discretionary grants or gaining a share of Federal formula grants used by State and local governments to deliver social services.

. Few Federal funding programs have undergone a thorough evaluation with an eye to ensuring that expenditures yield the planned-for positive results in the lives of people who need help.