Charitable Choice: Overview of Research Findings on
Implementation (18-JAN-02, GAO-02-337).
Charitable choice provisions require states and localities to
allow religious organizations to compete for federal funding on
the same basis as other social service providers, without
impairing the religious character of such organizations. Congress
has been considering legislation to expand charitable choice
provisions to other government programs. At least 19 states have
contracted with faith-based organizations (FBOs) to provide some
welfare services. Moreover, states are using various approaches
to implement charitable choice legislation. For example, some
states have created state faith-based liaisons to promote greater
awareness of charitable choice provisions or removed barriers to
contracting with FBOs. Several factors have limited the
establishment of collaborations between FBOs and states,
including some FBOs' lack of awareness and understanding of
charitable choice provisions, their reluctance to partner with
government, and the limited financial and administrative capacity
of some FBOs. Once collaborations have occurred, some small FBOs
have had problems (1) covering ongoing costs while awaiting
government reimbursement or (2) managing the performance-based
contracts because of limited technological and management
systems. GAO found no information with which to assess the
effectiveness of FBOs as providers of social services. Although
some anecdotal evidence suggests that FBOs have been successful,
the research community has not rigorously examined the
effectiveness of FBOs as social service providers.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-02-337
ACCNO: A02666
TITLE: Charitable Choice: Overview of Research Findings on
Implementation
DATE: 01/18/2002
SUBJECT: Charitable organizations
Federal aid programs
Federal funds
Federal grants
Federal legislation
Federal/state relations
Performance measures
Procurement regulations
Community Services Block Grant Program
Temporary Assistance for Needy Families
Program
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GAO-02-337
United States General Accounting Office
GAO
Report to Congressional Requesters
January 2002
CHARITABLE CHOICE
Overview of Research Findings on Implementation
GAO-02-337
United States General Accounting Office Washington, DC 20548
January 18, 2002
The Honorable Joseph I. Lieberman
Chairman
Committee on Governmental Affairs
United States Senate
The Honorable Elijah E. Cummings
Ranking Minority Member
Subcommittee on Criminal Justice, Drug Policy, and Human Resources Committee
on Government Reform House of Representatives
This report addresses your request for an overview of research findings on
the implementation of charitable choice provisions in current law.
Charitable choice provisions require states and localities to allow
religious organizations to compete for federal funding on the same basis as
other social service providers, without impairing the religious character of
such organizations. These provisions apply to several programs, including
the Temporary Assistance for Needy Families program, the Community Services
Block Grant program, and substance abuse treatment and prevention programs
under amendments to the Public Health Services Act in 2000.
The Congress has been considering legislation to expand charitable choice
provisions to other specific government programs. To provide you with
information to consider during this debate, you asked that we review the
available literature to determine (1) the extent to which and how states
have responded to charitable choice provisions in current law; (2) the
factors that have limited the collaboration between states and faith-based
organizations (FBOs); (3) the issues that have been encountered once
collaboration has occurred; and (4) how FBOs performed as compared to
secular providers of social services.
To address your request, we reviewed the existing research on charitable
choice provisions and interviewed several experts in the field. We conducted
our work from June through July 2001 in accordance with generally accepted
government auditing standards. We briefed your staff on the results of our
work on July 27 and August 28, 2001. This report formally conveys the
documents used at those briefings.
In summary, while the literature does not provide a national picture of the
extent to which states have responded to charitable choice provisions, it
provides some useful information. At least 19 states have contracted with
FBOs to provide some welfare-related services. Moreover, states are using
a variety of approaches to implement charitable choice legislation. For
example, some states have created state faith-based liaisons to promote
greater awareness of charitable choice provisions or changed state
procurement requirements to remove barriers to contracting with FBOs.
Several factors have limited the establishment of collaborations between
FBOs and states, including some FBOs' lack of awareness and
understanding of charitable choice provisions, their reluctance to partner
with government, and the limited financial and administrative capacity of
some FBOs. Once collaborations have occurred, some small FBOs have
encountered difficulties in covering ongoing costs while awaiting
government reimbursement or difficulties managing the performance-
based contracts, due to limited technological and management systems.
Finally, the literature we reviewed provides no information with which to
assess the effectiveness of FBOs as providers of social services. While
some anecdotal evidence attributes success to FBOs, the effectiveness of
FBOs as social service providers has not been rigorously examined by the
research community.
We are sending copies of this report to relevant congressional committees,
the Office of Faith-Based and Community Initiatives in the White House,
and the Centers for Faith-Based and Community Initiatives in the
Departments of Education, Health and Human Services, Housing and
Urban Development, Justice, and Labor. We will make copies available to
others upon request. If you or your staff have any questions about this
report, please contact me on (202) 512-7215 or Andrew Sherrill on (202)
512-7252.
Sigurd R. Nilsen
Director, Education, Workforce,
and Income Security Issues
*** End of document. ***