News Release

March 22, 2001

Bush's faith-based initiative: The end of charity as we know it?
Study says faith-based groups would be compromised, co-opted and corrupted

WASHINGTON—Faith-based charities have proven themselves far more effective at helping the poor than government-based welfare, but President Bush's initiative to provide federal funds to these same charities "risks mixing government and charity in a way that could undermine the very things that have made private charity so effective," according to a new Cato study released today.

In "Corrupting Charity: Why Government Should Not Fund Faith-Based Charities," Michael Tanner, director of health and welfare studies at the Cato Institute, argues that Bush's initiatives may actually hurt charities by subjecting them to bureaucratic federal paperwork and regulations. Faith-based charities on the government dole eventually could find themselves becoming increasingly dependent on federal funds, forcing them to alter their original missions and religious character that made them so successful in the first place.

The allure of additional funding may result in a sort of "mission creep" that distorts a private charity's original purpose. "Ironically, given that many private charities are dedicated to fighting dependence on welfare, government funding may quickly make the charities themselves dependent," says Tanner. "In the chase for government funding, charities may adapt their programs to the federal grant process rather than to the needs of the clients." This would result in private charities becoming "vendors" of government services, or "government programs wearing clerical collars," he says.

The weight of federal bureaucracy in the dispersal of such funds would create additional problems. "For smaller churches and organizations, compliance costs will be a terrible burden," says Tanner. "Beyond civil rights issues, there is a host of labor, safety, licensing, staff training and other regulations that come into play once a charity accepts public funds," he says.

Bush's initiative also raises concerns about the separation of church and state, and is "an open invitation to litigation," says Tanner, as the Supreme Court's Lemon test may prove tough for the legislation to clear. The fungibility of funds provided to religious organizations raises other concerns, says Tanner, as funds donated for secular purposes would free up money for sectarian projects. The net effect "would be the same as that of the federal government's directly funding the religious activities," he says.

"The whole idea of charity could become subtly corrupted; the distinction between the coercive welfare state and true charity based on voluntary giving and love of one's neighbor could be lost," Tanner warns. "President Bush should abandon his proposal and leave charities to do what they do best."

"Corrupting Charity: Why Government Should Not Fund Faith-Based Charities"