Equal Treatment: The Basics
The Equal Treatment rules govern federal funds, and associated state and local funds, in federal programs other than those governed by Charitable Choice (Charitable Choice covers the TANF, CSBG, and SAMHSA drug treatment programs, except for SAMHSA indirect funding). Associated state and local funds are those required to be expended (e.g., matching funds) and those that are voluntarily commingled with the federal funds.
The Equal Treatment rules, which are codified into the general administrative regulations of major federal departments, are based on Executive Order 13279, “Equal Protection of the Laws for Faith-Based and Community Organizations” (Dec. 12, 2002).
Types of financial relations
• “direct” funds: grants, subgrants, contracts, and subcontracts
• “indirect” funds: vouchers, certificates, scholarships
Eligibility of faith-based providers
• no exclusion of faith-based providers because they are religious, highly religious, or “sectarian”
• faith-based providers are eligible on the same basis as other providers
Rights of faith-based providers
• may retain religious name, religious mission statement, selection of board members on religious basis
• do retain control over their internal governance
• may maintain their religious missions
• may offer voluntary religious activities, separate from directly funded services
• may maintain a religious atmosphere with icons, religious art, etc.
• do retain the independence from government they had before accepting government funds
• do retain their federal exemption to hire on a religious basis, unless the federal program statute forbids it; may appeal to the Religious Freedom Restoration Act against a federal restriction
• are subject to state and local restrictions on religious staffing but may appeal to the intent of the Equal Treatment rules (protecting the governance and mission of faith-based providers) and their constitutional rights
Obligations of faith-based providers
• must meet the same fiscal accountability standards as other providers
• must not fund inherently religious activities with direct funds
• limitation on funding inherently religious activities does not apply to indirect funds
Protections for beneficiaries
• must be served without discrimination on the basis of religion or religious belief
• participation in inherently religious activities cannot be required in directly funded services
Indirect funding
• the provider is paid via a voucher or scholarship offered by a beneficiary who selected the provider
• the beneficiaries have a choice of multiple providers, including non-religious providers
• inherently religious activities can be woven into the government-funded services
• beneficiaries who object to a faith-based provider and/or services that include religion will choose a different provider
Rights and duties of intermediate organizations
• must follow the Equal Treatment rules in awarding subgrants (neutral selection of subgrantees, enforcing the direct funding rules)
• retain all Equal Treatment religious rights vis-à-vis government
