On Monday, Jan. 29, President Bush signed two executive orders implementing a new faith-based and community initiative. The first order establishes a White House office that will coordinate federal efforts to expand faith-based and grassroots efforts, as well as help states and local governments create their own versions of these initiatives.

University of Pennsylvania Professor John J. DiIullio Jr. will head the Office of Faith-Based and Community Initiatives. Former City and County of Indianapolis Mayor Stephen Goldsmith will head the office’s advisory board. Goldsmith was the Bush campaign’s chief domestic policy advisor.

Five federal departments to create faith-based centers
The second executive order directs five federal departments in creating a center for faith-based and community initiatives. The five departments are Health and Human Services, Housing and Urban Development, Labor, Justice and Education. The departmental centers will coordinate efforts to eliminate regulatory, contracting and programmatic obstacles to participation of faith-based and community organizations in service delivery.

Additionally, the centers at the departments of Labor, and Health and Human Services are directed to ensure compliance with “Charitable Choice” provisions that have already been enacted, placing these organizations on an equal footing to receive federal funds.

The Charitable Choice provision was enacted as part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Specifically, it is part of the Temporary Assistance for Needy Families Block Grant (TANF) program administered by the Department of Health and Human Services.

The provision allows states to enter into contracts with religious organizations for the provision of TANF services. It does not, however, preempt state constitutional or statutory provisions that prohibit or restrict the use of state funds in or by religious organizations.

The provision prohibits the use of TANF funds for religious instruction, worship or proselytization. A religious institution’s exemption from the civil rights act regarding employment practices would not be affected by the receipt of TANF funds. The provision also affects the Welfare to Work Program administered by the Department of Labor because this program is an amendment to the TANF law.

Charitable Choice also provides that religious institutions cannot discriminate against an individual on the basis of religious belief or refusal to participate in a religious practice. Additionally, if an individual objects to the religious character of the organization providing assistance, the state must provide comparable services from an alternative provider.

Four new pilot programs announced
In addition to the executive orders, the president announced four pilot programs. The first would provide competitive grants to mentor the children of prisoners. The second would provide competitive grants to establish pre-release programs for inmates in federal facilities. The third would provide funds to states for pilot maternity group homes. The fourth is a combination of initiatives including expanding the eligibility for the 21st Century Community Learning Centers to faith-based groups, establishing community technology centers and providing certificates for after-school programs operated by community groups, faith-based groups or schools.

Tax incentives
The final part of the package includes tax incentives to increase charitable giving. These include, among others:

• a charitable deduction for taxpayers who do not itemize
• raising the cap on corporate charitable deductions
• limiting the liability of corporations that make in-kind donations, and
• allowing individuals over the age of 59 to use Individual Retirement Account funds for charitable purposes without having to pay income tax on the withdrawal.

The executive orders state that the White House Office will be operational within 30 days (March 1).

The departments have been directed to make the centers operational within 45 days. HUD, which already had established a center for faith-based and community initiatives under former Secretary Cuomo, will continue this work with new HUD Secretary Mel Martinez.