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In the community corrections context, the term faith-based initiatives refers to a collection of public policies that appropriate funds to faith-based organizations so they can increase their capacity to rid communities of their problems and ultimately curtail the dilemmas associated with the relative and absolute deprivation that can lead to criminality and recidivism.

Religious institutions collectively face the strain of maintaining a minimum overhead, because of the uncertainty of their fiscal status and the threat of unexpected operational expenses, while displaying evidence of concern and action regarding secular but social needs. As religious organizations, they often seek to meet societal needs as part of their mission, which lies beyond congregational maintenance. The social problems they work to address include mental illnesses, substance abuse, poverty, and their by-products, including criminality. Addressing such problems in the community, however, often requires significant financial resources that are beyond most faith-based organizations' internal means.

Public officials face two intersecting pressures: the demand to take a tough stance on crime and, at the same time, maximize economic efficiency. Faith-based initiatives have emerged from the core belief that religious institutions can reduce prison recidivism by rehabilitating offenders without public funding. However, shifting some responsibility for correctional treatment from the government to the private sector requires the public to support legislative action, and hence controversy surrounds the rhetoric and policies of faith-based initiatives. Government often criticizes religious institutions as abandoning “the social gospel” or the insufficiency in social activism and the inadequacy of faith-based organizations' aid to the needy, and this situation essentially empowers the state to define the mission and interpret the creeds of religious groups.

Politics plays a significant role in the existence of faith-based initiatives. State and municipal politicians typically face pressing interrogation about their positions and action plans for minimizing crime and managing criminal behavior. If political candidates are then elected or appointed, they often face significant pressure to follow through with their campaign promises. Tensions between competing ideologies greatly affect the degree to which faith-based initiatives can be implemented or repealed. This may result in legislation that regulates both public and private funding. As state and federal budgets shrink, existing secular programs and services are prone to drastic shifts in resources, which ultimately impact the receiving communities.

History

During the 1980s, under the presidential administration of Ronald Reagan, targeted reductions of the U.S. federal budget triggered the defunding of a host of social programs and services. However, the budgetary shift accompanied a drastic increase in prison construction and incarceration. In response, religious institutions and para-church organizations became the resources of last resort and were forced to fill the void in the social safety net on behalf of the marginalized. Evidence of increased faith-based efforts supported the belief that such organizations could become increasingly productive and instrumental in the services they provide; therefore, advocates could justify less reliance on the government for services.

The passing of the Welfare Reform Act of 1996 under the administration of President Bill Clinton accompanied the initiation of “charitable choice.” At the time, Senator John Ashcroft, the leading congressional advocate of charitable choice, sought to make federally funded grant contracts accessible to faith-based organizations on equal terms with other private-sector organizations. Religiously affiliated organizations such as Catholic Charities, Lutheran Social Services, and the Jewish Federation had previously received federal grants, yet these nonprofit organizations existed as separate organizations from their respective denominations. However, charitable choice enabled explicitly sectarian institutions, such as mosques, synagogues, and churches, to compete for federal funds generated through tax revenues.

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