The Charitable Choice provision of the "Personal Responsibility and Work Opportunity Act of 1996,"("PRWORA") encourages states to contract with Faith Based Organizations (FBOs) for delivery of social services to welfare recipients. The government may not require such FBOs to diminish or mask their religious character; however, government funding may not be used to pay for religious exercises, and FBOs may not condition receipt of benefits upon religious participation.

Text Box: Charitable Choice: First Results from Three States
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Inclusion of Charitable Choice in welfare reform was
premised on several assumptions:
* FBOs do a better job at lower cost than traditional providers;
* FBOs represent significant untapped resources that can be
marshaled to help the needy; and
* FBOs had previously encountered barriers to participation.

Research supporting these assumptions is sketchy.
With respect to comparative efficacy, no comprehensive research exists.

This project will study the effects of Charitable Choice in three states: Indiana, Massachusetts and North Carolina. In addition to an evaluation of comparable efficacy and cost, it will focus analytic efforts on three elements of implementation that are critical to the program's success: capacity of FBOs to deliver and states to monitor the identified services; constitutional and fiscal accountability for resources, outcomes and processes; and adherence to First Amendment boundaries between church and state.

While this research is limited to human services delivery for purposes of TANF (Temporary Assistance to Needy Families), results may inform efforts to implement President Bush's Faith Based Initiative through the White House Office of Faith-Based and Community Initiatives.

For a detailed discussion of the study, see Project Description.