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| Some Lessons Learned in Charitable
Choice Contracting
Provided by Nile Harper
Published here on 3-7-01
 | Indirect and intermediate contracting is best.
Keeping more distance between government agencies and religious
organizations is wise and results in less paperwork. |
| Even though it is not legally required, it is wise
for any faith based organization to create a 501-C-3 non-profit
corporation as the entity to do business with the government. |
| Get familiar with the specifics of charitable
choice before you proceed. You can do this in part through buying
and studying the book, a Guide to Charitable Choice,
available from the Center for Public Justice, 2444 Solomon Island
Road, Suite 201, Annapolis, Maryland 21401. Phone 410-571-6300. Cost
is $5.00. |
| Incorporate charitable choice guidelines directly
into your written contract language to protect your organization and
to make clear that your contract is a charitable choice contract. |
| Be sure that the government partner agency with
whom you are working knows and understands the specifics of
charitable choice. You cannot take this for granted. Give them a
copy of A Guide to Charitable Choice, from the Center for
Public Justice. |
| Be straightforward and open about your religious
identity and purpose as a faith-based organization. Do not hide your
true purpose in any way. It is legal to be religious and to use
government money. |
| Use government money for the clearly secular parts
of your operation, such as for purchase of equipment, supplies,
rent, utilities, building maintenance, and technical support
services. Keep good records. Have a clear paper trail showing use of
government money. |
| Have clear understanding of "performance based
contracting." This means you receive money as you fulfill the
contract according to the benchmarks in the contract. For example,
you may receive a payment when a person is enrolled in a job
training program, another payment when they graduate, and a final
payment when they start a job. |
| Start small and do well. Don't overextend. Do not
promise more than you can deliver. Be driven by your mission, not by
chasing money. Do not become over-dependent on any one source of
funding.
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Source: Adapted from a document by
Amy L. Sherman, entitled Charitable Choice, published by the
Welfare Policy Center of the Hudson Institute, 2000. See also Growing
Impact of Charitable Choice, by Amy Sherman, available from Center
for Public Justice, Annapolis.
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