What is Charitable Choice?

Charitable Choice is a legislative provision designed to remove unnecessary barriers to the receipt of certain federal funds by faith-based organizations. The provision prohibits states from discriminating against religious organizations when choosing providers under certain federal grant programs. While Charitable Choice is designed to improve access to federal funding for faith-based organizations, it does not establish a new funding stream dedicated to these groups.

Currently, Charitable Choice applies only to three block grant programs at HHS. The first provision was included in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and applied to HHS funding under the Temporary Assistance to Needy Families (TANF) program. A Charitable Choice provision was also added to the Community Services Block Grant (CSBG) program when it was reauthorized in 1998. Both programs are administered by the Administration for Children and Families (ACF) with the funding provided to the states through block grants. In these programs, HHS provides the funds to the states, which in turn award funds to other local or community providers, including faith-based organizations. In 2000, a Charitable Choice provision was added to the Substance Abuse Prevention and Treatment Block Grant and discretionary grants as well as the PATH program (Projects for Assistance in Transition from Homelessness) administered by the Substance Abuse and Mental Health Services Administration (SAMHSA).

Charitable Choice rests on four principles:

A Level Playing Field. Faith-based providers are eligible to compete for funds on the same basis as any other providers, neither excluded nor included because they are religious, too religious or of the wrong religion.
Respect for Allies. The religious character of faith-based providers is protected by allowing them to retain control over the definition, development, practice, and expression of their religious beliefs. Neither federal nor state government can require a religious provider to alter its form of internal governance or remove religious art, icons, scripture or other symbols in order to be a program participant.
Protecting Clients. In regard to rendering assistance, religious organization shall not discriminate against an individual on the basis of religion, a religious belief, or refusal to actively participate in a religious practice. If an individual objects to the religious character of a program, a secular alternative must be provided.
Church-State Separation. All government funds must be used to fulfill the public social service goals, and no direct government funding can be diverted to inherently religious activities such as worship, sectarian instruction, and proselytization.

HHS Proposes New Regulations For Fair Treatment Of Religious Grantee Organizations And Their Clients

HHS Final Charitable Choice Regulations

Last revised: July 26, 2004

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