[Code of Federal Regulations]

[Title 45, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR1050.3]



[Page 344-345]

 

                        TITLE 45--PUBLIC WELFARE

 

CHAPTER X--OFFICE OF COMMUNITY SERVICES, ADMINISTRATION FOR CHILDREN AND 

            FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

PART 1050_CHARITABLE CHOICE UNDER THE COMMUNITY SERVICES BLOCK GRANT 

ACT PROGRAMS--Table of Contents

 

Sec. 1050.3  What conditions apply to the Charitable Choice provisions 

of the CSBG Act?



    These Charitable Choice provisions apply whenever the Federal 

government, or a State or local government, uses funds under the CSBG 

Act to provide awards, contracts, or other assistance under any program 

authorized in the Community Services Block Grant, 42 U.S.C. 9901, et 

seq. Additionally, these provisions apply whenever an intermediate 

organization acting under a contract, grant, or other agreement with a 

Federal, State, or local government entity selects nongovernmental 

organizations to provide assistance under any of the programs authorized 

under the Community Services Block Grant Act.

    (a)(1) Religious organizations are eligible, on the same basis as 

any other organization, to participate in the applicable programs as 

long as they use program funds consistent with the Establishment Clause 

and the Free Exercise Clause of the First Amendment to the United States 

Constitution.

    (2) Neither the Federal government nor a State or local government 

receiving funds under an applicable program shall discriminate against 

an organization that applies to provide, or provides, services or 

benefits on the basis of the organization's religious character or 

affiliation.

    (b) No program participant that receives direct funding under an 

applicable program may expend the program funds for inherently religious 

activities, such as worship, religious instruction, or proselytization. 

If an organization conducts such activities, it must offer them 

separately, in time or location, from the programs or services directly 

funded under any applicable program, and participation must be voluntary 

for program beneficiaries.

    (c) A religious organization that participates in an applicable 

program will retain its independence from Federal, State, and local 

governments and may continue to carry out its mission, including the 

definition, practice and expression of its religious beliefs, provided 

that it does not expend any direct funding under the applicable program 

to support any inherently religious activities, such as worship, 

religious instruction, or proselytization. Among other things, religious 

organizations may use space in their facilities to provide services 

funded under an applicable program without removing religious art, 

icons, scriptures, or other symbols. In addition, such a religious 

organization retains the authority over its internal governance, and it 

may retain religious terms in its organization's name, select its board 

members on a religious basis, and include religious references in its 

organization's



[[Page 345]]



mission statements and other governing documents.

    (d) The participation of a religious organization in, or its receipt 

of funds from, an applicable program does not affect that organization's 

exemption provided under 42 U.S.C. 2000e-1 regarding employment 

practices.

    (e) A religious organization that receives funds under an applicable 

program, shall not, in providing program services or benefits, 

discriminate against a program beneficiary or prospective program 

beneficiary on the basis of religion or a religious belief.

    (f) Religious organizations that receive funds under an applicable 

program are subject to the same regulations as other nongovernmental 

organizations to account, in accordance with generally accepted auditing 

and accounting principles, for the use of such funds. In addition, 

religious organizations are required to keep any Federal funds they 

receive for services segregated in a separate account from non-Federal 

funds. Only the segregated government funds are subject to audit by the 

government under the applicable program.

    (g) If a State or local government contributes its own funds to 

supplement CSBG Act funded activities, the State or local government has 

the option to segregate the Federal funds or commingle them. However, if 

the funds are commingled, the Charitable Choice provisions apply to all 

of the commingled funds.

    (h) If a nongovernmental intermediate organization, acting under a 

grant, contract, or other agreement with the Federal, State or local 

government, is given the authority to select nongovernmental 

organizations to provide services under an applicable program, then the 

intermediate organization must ensure that there is compliance with 

these Charitable Choice provisions. The intermediate organization 

retains all other rights of a nongovernmental organization under the 

Charitable Choice provisions.