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Visit the Center for the Study of Compassionate Conservatism:
http://www.compassionateconservative.cc


Senate Must Fix Faith-Based Initiative

By Michael B. Barkey

On Thursday, the House of Representatives narrowly passed President Bushıs Faith-Based Initiative, which leaves the Senate the only remaining obstacle to expansion of federal support for religious charities. Recognizing that problems still exist with the House bill, Representative Barney Frank remarked following passage: "I thought faith-based meant faith in God, not faith in the Senate."

The 1996 welfare reform law, which was enacted to help overcome welfare dependency by individuals, includes a provision that might in fact result in welfare dependency for nonprofit groups. The snare might be the charitable choice provision, which permits faith-based organizations to compete more easily for direct grants from the federal government. If the Senate goes along with Bush and the House of Representatives in expanding charitable choice, an entire class of religious organizations could become dependent on the government.

This state of affairs would undermine the effectiveness of the very organizations working to help people make a transition from welfare to work: It's hard for an organization to make the moral case for independence and self-sufficiency when it is itself dependent on the dole.

As the debate in Washington progresses, it is becoming increasingly clear that despite the potential drawbacks of charitable choice, direct federal funding of charities will remain a central component of Bush's Faith-Based Initiative. It may become even more the focal point now that the president's proposed charitable tax credits are being scaled back on Capitol Hill. In some ways, this is a fortunate development.

While measures like the charitable tax credit are important for boosting charitable giving nationwide, it is wrong for conservatives like the National Reviewıs Kate O'Beirne to push these measures alone. Historically, people donate money to big national charities and other causes, like symphonies and museums, operating within their own local community. Small, inner-city ministries that already operate on shoestring budgets are rarely able to afford the expensive outreach efforts necessary to tap into the vast resources found in more affluent communities. A strategy focused on tax reforms could leave the poorest neighborhoods in greatest need of charity behind.

Fortunately, the charitable choice law can be changed to minimize the hazards of nonprofit dependency while maximizing the benefits of governmental assistance to the soldiers fighting on the forgotten fronts in the war on poverty.

Here's how. The regulatory and tax reforms that make up a large portion of Bush's Faith-Based Initiative should be advanced as part of a larger reform strategy that limits charitable choice funds to small, time-limited grants for organizations located in poor communities.

Under this reform, a charitable organization, like a welfare recipient, would have time-limited benefits, becoming ineligible for governmental assistance after three years. And, like work requirements for individuals, government dollars for the next fiscal year would only flow to those private charities actively working to find private sources of funding to replace them. This would help to ensure that the percentage of an organization's budget coming from government sources gradually declines and that the group moves toward self-sufficiency.

The law would need to limit organizations to a single grant of no more than three years. This is important because removing the prospect of receiving another grant would greatly discourage an organization from tailoring its program in midstream to appease government grant makers, either by watering down essential religious content or chasing dollars available for projects not within an organization's mission. An organization would constantly be focused on its mission, the future and independence from the state. Charitable organizations would not become a constituency for expanding the welfare state -- something an expansion of existing charitable choice could not protect against.

The White House Office of Faith-Based and Community Initiatives, created earlier this year to help strengthen civil society, should be joined by similar offices in the 50 states. Whether federal or state, each office can assist poverty-fighting organizations to find private sources of financing.  For instance, state and federal offices could publish a list of groups that receive public dollars and that need additional private dollars to sustain their good work. Similarly, the offices could hold charity fairs in more affluent neighborhoods to heighten the awareness of community members and business leaders about the need to support specific poverty fighters operating on the "other side of the tracks." And other measures -- such as media tours of successful charities to draw attention to worthy efforts and best practices -- could help organizations that typically cannot afford professional fund-raisers.

Instead of making private charities dependent upon a series of unending and ever-expanding grants, government must help link individuals looking to donate generously of their time and money to poverty-fighting organizations in need. By reforming charitable choice, the government could actually strengthen civil society, rather than subvert it. This is the kind of active and energetic sense of citizenship that compassionate conservatism envisions.

Michael B. Barkey is president of the Center for the Study of Compassionate Conservatism and editor of "The Next Phase of Welfare Reform" (forthcoming from the University Press of America).

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