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Grants & Funding - FAQs:
Indirect funding is funding that an organization receives as the result of the genuine and independent private choice of a beneficiary through a voucher, certificate, coupon, or other similar mechanism.
Direct funding is funding that is provided to an organization directly by a governmental entity or intermediate organization that has the same duties as a government entity.
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Center for Faith-based & Community Initiatives
Faith-based organizations who received funding are allowed to:
- Use facilities without removing religious art, icons, scriptures or other religious symbols
- Retain religious terms in organization's name
- Select board members on a religious basis
- Include religious references in their mission statements and other governing documents
- Retain their federal exemption under Title VII of the Civil Rights Act, which allows them to hire on a religious basis, except in cases where the federal program statute forbids it
- Retain their authority over internal governance
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Not only do faith-based organizations need to abide by the Equal Treatment and Charitable Choice regulations, but all organizations are required to provide the same assurances and restrictions on the use of HHS funds so that they are applied equally to secular and religious providers.
For information about the Equal Treatment and Charitable Choice regulations, visit http://www.hhs.gov/partnerships/about/regulations/
HHS information about the American Economic Recovery and Reinvestment Act (Recovery Act) implementation strategy, program plans, funding and contract opportunities, and other activities are available at, http://www.hhs.gov/recovery.
There is no guarantee you will receive a grant if you apply. However, if you do not receive a grant, you should try to find out why you did not receive funding and how you could improve a future application. You can follow up with the program officer identified in the announcement. This individual will either be able to provide you with information about your application, or point you to the right person to contact.
In addition, you may be able to obtain written comments on your proposal, which could be a good learning tool. Remember that many organizations compete for Federal funds, and many groups apply several times before they receive an award. Getting feedback on your application can help you improve your chances of receiving funds the next time around.
For information on writing grant proposals, you may want to visit these sites:
- Developing Competitive SAMHSA Grant Applications - This document was created to help grantees acquire the skills and resources needed to plan, write, and prepare a competitive grant application for SAMHSA funding. Also see: What Grant Applicants Need to Know
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Capacity Building Toolkit for Faith-Based and Community Organizations - An Administration for Children and Families Web site that provides information on best practices, grant acquisition, grant management, research, and policy.
- Developing and Writing Grant Proposals- The Catalog of Federal Domestic Assistance site with guide for successful grant proposal writing.
Grants.gov allows organizations to electronically find and apply for more than $400 billion in Federal grants. Grants.gov is THE single access point for more than 1,000 grant programs offered by all Federal grant making agencies. Be sure to follow the step-by-step instructions for registering on the site. Then you may search for grant opportunities. You may also want to sign up for grant opportunity email alerts
The HHS Grants Information for Current and Prospective HHS Grantees (http://www.hhs.gov/asfr/ogapa/aboutog/grantsnet.html) provides grant management information about HHS programs.
Medicare is a Federal health insurance program for people 65 years or older, certain people with disabilities, and people with end-stage renal disease (ESRD). Medicare has two parts -- Part A , which is hospital insurance, and Part B, which is medical insurance. For information on Medicare, visit the Web site at http://www.medicare.gov or call toll free, 1-800-MEDICARE (1-800-633-4227).
Medicare Prescription Drug Coverage: Since January 1, 2006, everyone with Medicare, regardless of income, health status, or prescription drug usage has had access to prescription drug coverage. For more information about this program, visit: http://www.medicare.gov/navigation/medicare-basics/medicare-benefits/part-d.aspx.
Medicaid is a jointly-funded, Federal-State health insurance program that helps many people who can't afford medical care pay for some or all of their medical bills. Good health is important to everyone. If you can't afford to pay for medical care right now, Medicaid can make it possible for you to get the care that you need so that you can get healthy and stay healthy. Medicaid is available only to people with limited income. You must meet certain requirements to be eligible for Medicaid. Medicaid does not pay money to you; instead, it sends payments directly to your health care providers. Depending on your state's rules, you may also be asked to pay a small part of the cost (co-payment) for some medical services.
Learn More: http://www.cms.hhs.gov/home/medicaid.asp
The State Children's Health Insurance Program (SCHIP), created in 1997, expands health coverage to uninsured children whose families earn too much for Medicaid but too little to afford private coverage. Through the national "Insure Kids Now" initiative, each state has its own SCHIP program that makes health insurance coverage available to children in working families. For more information, visit www.insurekidsnow.gov or call toll free 1-877-KIDS-NOW (1.877.543.7669). This Web site andtoll free number also provide information on Medicaid.
HHS offers more than 90 benefit assistance programs, mostly through grantees at the State and local levels.
To find out if you are eligible for any of these programs, visit the Benefits.gov website which can assist you with an eligibility questionnaire, program, and State and local contact information.
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The Single Point of Contact (SPOC) List for grants management identifies the designated State SPOCs participating in the "Intergovernmental Review of Federal Programs" in accordance with Executive Order #12372 (PDF-3 pages).
This list is compiled and maintained by the Office of Management and Budget (OMB) and is based on the most current information provided by the States. Changes to the list will only be made upon formal State notification to OMB.
You can find the list at: http://www.whitehouse.gov/omb/grants_spoc
Financial Reporting Requirements.
To make sure that grant funds are used properly, organizations that receive Federal funds must file regular financial status reports. These forms should not take long to complete, but they are important. The basic financial report form is a one-page document called Standard Form 269. Many agencies have adapted this form to suit their own programs. You can find a copy of Standard Form 269 at http://www.whitehouse.gov/omb/grants/sf269.pdf.
Audit.
All agencies/organizations that receive Federal funds are subject to basic audit requirements, including community and faith-based groups. These audits are intended only to examine the Federally-funded parts of an organization's operations and are not designed to identify unrelated problems. The audits are necessary to make sure that Federal dollars have been spent properly on legitimate costs. It is therefore extremely important for grant recipients to keep accurate records of all transactions conducted with Federal funds.
Most organizations are not audited by the government itself, although the Federal government has the right to audit any program that receives public money at any time. For example, organizations that spend less than $300,000 a year in Federal funds are generally asked only to perform a "self-audit." For larger grants -- those over $300,000 a year -- an audit by a private, independent outside legal or accounting firm is required. More information on audits may be found on the Office of Management and Budget's website (www.whitehouse.gov/omb/circulars).
The Federal government uses two kinds of grants:
- Grants given by an agency of the Federal government (also known as "discretionary" grants) -- for instance, a homeless assistance grant given out by the Department of Health and Human Services to a homeless shelter.
- Grants that put Federal money in the hands of States, cities, or counties for them to distribute to community groups, charities, and other social service providers, usually under their own rules and regulations (also known as "formula" or "block" grants).
You can apply directly to the Federal government or you can apply for funds from an agency/organization that distributes money it receives from the Federal government. More money is available from programs administered by States and localities than from the Federal government directly.
To search for funding opportunities from the Federal Government, you may want to register and apply through the single source for Federal grants at:
No, religious organizations can compete for government funding to provide public services without having to abandon their religious character. In fact, faith-based organizations have every right to hold, express and practice their deepest convictions, so long as any inherently religious and worship-centered activities are separate, voluntary, and privately funded.
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GovLoans.gov is your gateway to Federal loan information. It directs you to the loan information that best meets your needs. You may browse through all loan programs or search for information about loans in the following categories:
- Agriculture
- Business
- Disaster Relief
- Education
- Housing
- Veteran
- Other Resources about Federal loan programs and the loan process
Benefits.gov is a resource for all government benefits and includes information on hundreds of benefit programs. To find additional benefit and assistance programs, visit www.Benefits.gov.
Yes. A faith-based or religious organization does not need to change its identity, including its name or chartering documents, to qualify for a Federal grant. Nor does it need it to remove religious art, icons, scripture, or other religious symbols from its property or its publications, although all of these must have been purchased with private funds.
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If you violate the requirements specified in your grant or otherwise improperly use the funds you receive, you may be subject to legal action. Among other things, you may:
- Lose your grant funds,
- Be required to repay the funds you received, and
- Pay any damages that might be awarded through court action.
If an organization uses its funds fraudulently, it could be subject to criminal prosecution.
If you have information regarding a grant fraud specific to HHS, please contact the HHS Fraud Hotline at 1-800-447-8477.
Learn More:
- Fraud Prevention & Detection (Office of the Inspector General)
- Frequently Asked Questions about Fraud, Waste, and Abuse
In most circumstances, no. There is no general Federal law that prohibits faith-based organizations that receive Federal funds from hiring on a religious basis. Nor does the Civil Rights Act of 1964, which applies regardless of whether an organization receives Federal funds, prohibit faith-based organizations from hiring on a religious basis. This Act protects Americans from employment discrimination based on race, color, religion, sex, national origin, age, and disability.
But the Civil Rights Act also recognizes the fundamental rights of faith-based organizations to hire employees who share their religious beliefs. The United States Supreme Court unanimously upheld this special protection for faith-based groups in 1987, and it has been the law since then. Thus, a Jewish organization can decide to hire only Jewish employees, a Catholic organization can decide to hire only Catholics, and so on, without running into problems with the Civil Rights Act. This special provision for faith-based groups protects the religious liberty of communities of faith. It permits faith-based groups to promote common values, a sense of community and unity of purpose, and shared experiences through service, all of which contribute to a religious organization's effectiveness.
In order for a religious organization to define or carry out its mission, it is important that it be able to take religion into account in hiring staff. Just as a college or university can take the academic credentials of an applicant for a professorship into consideration in order to maintain high standards, or an environmental organization can consider the views of potential employees on conservation, so too should a faith-based organization be able to take into account an applicant's religious belief when making a hiring decision.
One final point. In general, a faith-based organization retains this exemption even if it receives Federal, State, or local financial assistance. However, certain Federal laws and regulations, as well as State and local laws, may place conditions on the receipt of government funds. For example, some employment laws may prohibit discrimination on the basis of religion. Or a State or local law may prohibit discrimination on the basis of sexual orientation or require certain organizations to provide benefits to employees' unmarried domestic partners. Some of these laws may exempt religious organizations, while others may not. Organizations with further questions about this issue may wish to consult a lawyer to find out about the specific requirements that apply to your organization and any rights you may have under the Constitution or Federal laws.
Learn More:
- Understanding the Regulations Related to the Faith-Based and Community Initiative
- Grassroots Outreach Efforts (See Section on Working with Churches and Faith-Based Organizations; Office of Civil Rights)
- Center for Faith Based and Neighborhood Partnerships
FAQ ID #: 3264
The Charitable Choice laws apply to four Federal programs:
- Temporary Assistance to Needy Families (TANF)
- Community Services Block Grant (CSBG) programs (both overseen by the Administration for Children and Families at the United States Department of Health and Human Services (HHS));
- Programs for substance abuse and mental health (overseen by the Substance Abuse and Mental Health Services Administration (SAMHSA) at HHS
- Welfare-to-Work program (overseen by the Department of Labor).
These laws clarify both the rights and the responsibilities of faith-based organizations that receive Federal funds. They specify that faith-based organizations cannot be excluded from the competition for Federal funds simply because they are religious. These laws also provide that faith-based organizations that receive Federal funds may continue to carry out their missions consistent with their beliefs. For example, they may maintain a religious environment in their facilities, and they may consider their religious beliefs in hiring and firing employees.
The Charitable Choice laws also impose certain restrictions on faith-based organizations. They spell out specific "do's" and "don'ts" for faith-based groups receiving Federal money. The laws specify that religious organizations that receive Federal funds must serve all eligible participants, regardless of those persons' religious beliefs. They also prohibit religious organizations from using Federal funds to support any inherently religious activities (such as worship, religious instruction, or proselytization). In addition, recipients of services provided under Charitable Choice laws have a right to be provided with services from a non-religious provider. President Bush believes that recipients of Federal services should be offered a choice of providers. That is why it is preferable to have a range of providers, both secular and faith-based.
In addition to these requirements, the Community Service Block Grant and SAMHSA versions of the Charitable Choice laws also require religious organizations to maintain separate accounts for the Federal funds they receive.
Source: Guidance to Faith-Based and Community Organizations on Partnering with the Federal Government (published by the White House Office of Faith-Based and Community Initiatives 2002) http://www.whitehouse.gov/government/fbci/guidance_document.pdf
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The United States Supreme Court has said that faith-based organizations may not use direct government support to support "inherently religious" activities. Basically, it means you can not use any part of a direct Federal grant to fund religious worship, instruction, or proselytization. Instead, organizations may use government money only to support the non-religious social services that they provide. Therefore, faith-based organizations that receive direct governmental funds should take steps to separate, in time or location, their inherently religious activities from the government-funded services that they offer.
Such organizations should also carefully account for their use of all government money. This does not mean your organization can't have religious activities. It simply means you can't use taxpayer dollars to fund them. Some faith-based organizations set up separate charitable organizations (so-called "501(c)(3) corporations") to keep programs that receive government money separate from those that engage in inherently religious activities.
This rule of thumb is different if your organization receives Federal money that comes in the form of "vouchers" or other so-called "indirect aid." In simple terms, an indirect aid program is one that gives funds or certificates to individuals in need, which can be used to obtain services from a number of qualified organizations. A good example of indirect aid is a child-care certificate that a parent can use for daycare at any participating child-care center. School vouchers are another example of indirect aid. The vast majority of programs affected by the Faith-Based and Community Initiative involve direct aid to organizations (that is, money that goes directly to the organizations themselves), not vouchers or indirect aid.
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