A Guide for Grant Makers – What Foundations Need to Know About Faith-Based Giving
Posted on November 29, 2010 by Harris Smith
When starting a nonprofit there are a couple ways an organization can accomplish that. First, through Fiscal Sponsorship and second by establishing an independent 501c3. Involved in either choice are several necessary steps to establish a nonprofit through the chosen method.
What does it mean to be “faith-based”? Faith-based organizations (FBOs) range in size and makeup and serve individuals in nearly every city and community in the nation. They work in areas of social betterment ranging from food and housing to emotional wellness. Of course, just as the types of services provided vary, the term “faith-based” warrants a more careful and precise attribution.
When defining the specific problem and the solution, research the causes for the problem to find a unique perspective on how to structure your programs. This will give your nonprofit a solution that includes eradicating the problem and not just applying a temporary fix. Many nonprofits only look at what will relieve the challenge temporarily. This leads to many who are helped by the nonprofit project becoming dependent on the help but not ever overcoming the challenge. The better way to address a challenge is to provide the temporary help that is needed while also providing the means for the challenge to be overcome on a permanent basis.
Organizations with a high degree of religious activity might be best understood as faith-filled organizations. These organizations, such as worship centers or evangelistic associations, exist to further the tenets of a faith and have a high degree of religious activity, or perhaps only exist to serve a specific denomination.
On the other hand, some organizations are faith-based only in as much as they are managed or were established by individuals of faith. These organizations may best be described as faith- associated. An example of a nonprofit that is faith-associated might be the Catholic Charities. Despite their affiliation with the Catholic Church, the Catholic Charities focus primarily on reducing poverty and assisting the poor and are not particularly evangelistic. However, the charity will often rely on their Catholic roots when faced with difficult decisions that may compromise the faith foundations of the organization.
Create Programs Next comes the actual activities you are going to do to accomplish your nonprofit’s mission. What kinds of activities is your nonprofit going to be involved in on a day-to-day basis that works toward the mission. There maybe several and you will want to outline each one in detail. Be specific and as your doing it imagine that the next person that reads it will have to implement it completely from what you have written down.
The term “faith-based,” then, is essentially an all-encompassing categorization for this spectrum and is used to describe a wide range of organizations. Some may only be affiliated with a religious faith, while others are motivated by it and it is an aspect of their service even if their service is not inherently religious.
Some faith-based organizations require religious participation and others do not. Certain FBOs have no religious activity at all, while others have a core program with no religious activity but may require participation in a church, chapel service, or a prayer meeting before or after receiving services. Others, like churches, exist expressly to perform a religious activity. Many faith-based organizations, especially small ones, receive little or no foundation funding at all, even though various research and even the federal government have recognized the importance of faith-based programs. This is most likely a result of the uncertainty among private foundations surrounding giving to faith-based programs.
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