The Roundtable on Religion and Social Welfare Policy, a non-partisan research organization, has released a report on government funding of faith-based social services, stating in its press release that “it is nearly impossible to track how most of the money is being used.” The primary reasons cited for difficulty in tracking these funds were:

• Devolution -- States contract out federal funds at many different levels;
• No centralized system or database tracks grants, contracts and vouchers;
• Indirect financial support, such as vouchers or free use of public facilities, is not adequately tracked; and
• Grant documentation does not indicate any religious affiliation or organizations receiving public funds.

Richard Nathan, Director of the Rockefeller Institute, noted “It’s important to note that it’s not the fault of faith-based groups that there’s little information about the public funding they receive. Adequate tracking systems simply don’t exist to provide it.” He also said this means little is known about the comparative effectiveness of faith-based and secular grantees, and that the issue must be addressed “given the current push to expand the use of public dollars for faith-based welfare programs.” The report contained contradictory findings on the issue of reporting requirements. It noted that monitoring of public funds for faith-based groups is difficult because they “appear to operate in a more informal manner.” On the other hand, it said faith-based groups cite paperwork as a barrier to participation in federal programs. In a panel discussion sponsored by the Roundtable in Washington last week, two factors contributing to tracking and accountability difficulties emerged: the lack of a common definition of “faith-based organization” and the use of “intermediaries” to distribute funds. Representatives of faith-based centers in five federal agencies (Health and Human Services, Labor, Housing and Urban Development, Education and Justice) speaking at the panel all spoke about increased use of intermediaries as a way to get funds to faith-based groups. The intermediary issue will likely become increasingly important as the administration moves to implement charitable choice through the regulatory process. Without adequate oversight and reporting from sub-grantees of intermediaries, it will be difficult to prevent mixing religious activities with government funded services, or use of public funds for inherently religious activities. The Roundtable is a partnership of the Rockefeller Institute for Government, the George Washington University Law School and Search for Common Ground. The report is available on the Roundtable website.