Challenges in running a non-faith-based charity

Running a non-faith-based charity presents unique challenges, particularly in securing funding. Faith-based organizations (FBOs) receive a disproportionate share of charitable donations and grants, leaving secular charities struggling for resources. This imbalance is due to deep-rooted community networks, the moral obligation felt by religious adherents, and longstanding trust in faith-based organizations, which secular charities often lack.

One striking data point comes from a study by Giving USA, which reported that in 2022, 28% of all charitable donations in the U.S. went to religious organizations​. This figure is significant when considering that only 3-5% of total donations went to non-religious social services charities.

Faith-based groups benefit from consistent support through congregational giving, which secular organizations cannot replicate. This built-in funding stream helps FBOs stay financially stable while non-faith-based charities must compete for every dollar through wider and less defined networks.

Another advantage for faith-based organizations is their access to government funding. Under initiatives like the Faith-Based and Community Initiatives Program by the Department of Health and Human Services (HHS), faith-based groups often receive preference for grants and contracts.

This program explicitly facilitates partnerships between government agencies and religious organizations for delivering social services. Secular organizations face greater hurdles in accessing similar funds, often lacking the historical track record or the immediate community support to match faith-based groups.

Moreover, many donors prefer to give to faith-based charities due to a shared moral framework. Studies show that individuals are more likely to donate when they feel their values align with the organization’s mission, which gives FBOs an edge in building trust and long-term support.

Conversely, secular charities must invest more time and resources into establishing credibility and demonstrating the effectiveness of their work, all while competing with the ingrained trust and loyalty toward religious institutions.

This preference for FBOs doesn’t just affect small charities. Major donors, including corporations and philanthropic foundations, often direct funds toward faith-based groups due to their proven capacity to deliver social services, particularly in areas like disaster relief and homelessness. For example, data from The Pew Research Center found that nearly 40% of Americans are more likely to donate to faith-based organizations, even when secular options exist​.

This inherent bias puts non-religious organizations at a significant disadvantage.

Starting out and getting the message out about the impact can be one of the biggest challenges. Non-faith-based charities can focus on transparency, measurable impact, and inclusive messaging. By appealing to a broader audience and differentiating themselves through evidence-based approaches, secular organizations can diversify their funding streams and hope to attract support from donors interested in ethical and transparent charitable practices.

Additionally, advocating for more equitable government grant programs could level the playing field between faith-based and secular organizations.

In conclusion, in today’s world the faith-based charities dominate in funding due to strong networks and donor trust and government support. Addressing these funding imbalances is crucial to creating a more equitable nonprofit sector.

Sources:

1. Faith-Based and Community Initiatives. U.S. Department of Health and Human Services. Available at: https://www.hhs.gov/about/agencies/partnerships/faith-based-and-community-initiatives/index.html

2. Giving USA 2022: The Annual Report on Philanthropy for the Year 2022. Giving USA. Available at: https://www.givingusa.org

3. Charitable Giving to Religion. Pew Research Center. Available at: https://www.pewresearch.org

4. https://rtim.org/challenge-of-charity/

Let us know your thoughts on this topic. We would like to know more about your experiences.

Challenges in running a non-faith based charity