The Compassion Capital Fund: Brief Facts and Current Developments

CRS Report for Congress
The Compassion Capital Fund:
Brief Facts and Current Developments
Joe Richardson
Domestic Social Policy Division
Summary
The Compassion Capital Fund (CCF) was created in 2002 appropriations law (P.L.
107-116) and has since been operated under the authority of annual appropriations acts
and the research/demonstration project authority contained in section 1110 of the Social
Security Act. It is intended to help build service capacity and skills among faith- and
community-based organizations serving those in need, and encourage replication of
effective service approaches — it does not pay for direct services. Through FY2005, the
CCF has spent some $167 million: (1) $124.5 million in matching grants to experienced
“intermediary” organizations that aid and make sub-grants to local providers to help
them improve and expand their services; (2) $22.8 million in capacity-building $50,000
“mini-grants” given directly to faith-based and community organizations; and (3) $19.6
million for research grants and other types of support.
The FY2006 appropriation is $65 million ($64.3 million after two across-the-board
reductions applied to “discretionary” programs) — up from $54.55 million in FY2005.
As part of its $100 million FY2006 request, the Administration would have targeted
some $50 million toward support for youth “anti-gang” programs. And, while no
specific amount is included in its appropriation, the CCF has decided to earmark $30
million of its FY2006 appropriation for these activities under a Communities
Empowering Youth (CEY) project. The Administration’s FY2007 CCF appropriations
request is $100 million, but the House and Senate FY2007 appropriations measures
(H.R. 5647/S. 3708) would provide only $54.55 million (the FY2005 amount).
S. 6, the Family and Community Protection Act of 2005 (introduced January 14,
2005), contains provisions that would provide underlying law supporting CCF-like
activities administered by various agencies.
This report will be updated to reflect new data and budget figures, major program
changes, and legislation.

Congressional Research Service ˜ The Library of Congress

What Is the Compassion Capital Fund (CCF)? The CCF is a federal program
(it is not a “trust fund”) advanced by the Bush Administration that (1) provides grants to
match non-federal support with federal dollars to help experienced organizations aid small
faith-based and community groups to better serve social needs; (2) gives funding directly
to smaller groups to expand or to emulate model programs; and (3) provides research,
technical assistance, and other support for these efforts. It is a key element of the
Administration’s faith-based initiative, announced in January 2001, to expand the use of
faith-based and community groups as providers of social services.¹ Its expenditures
depend on how much Congress chooses to appropriate for any given year (i.e., it is a
discretionary program).
Just as important, many federal agencies (e.g., the Departments of Agriculture,
Health and Human Services, Housing and Urban Development, Justice, Labor, Veterans
Affairs) make grants to faith-based and community-based organizations as part of their
regular activities. These can “look like” CCF grants in that they provide money to faith-
based and community groups (as well as others), but are not CCF-funded.
In addition, a number of specific activities closely associated with the
Administration’s faith-based initiative (and often linked to faith-based and community
providers) receive federal money outside the CCF: a prisoner re-entry program, a project
for mentoring children of prisoners, the “Access to Recovery” substance abuse treatment
program, an initiative supporting maternity group homes, abstinence education, support
for healthy marriages and responsible fatherhood, and assistance for the homeless and in
resettling refugees.
How Much Has Congress Appropriated for the CCF? To date,
appropriations for the CCF have totaled almost $232 million — $29.9 million (FY2002,
the fund’s first year), $34.8 million (FY2003), $47.7 million (FY2004), $54.5 million
(FY2005), and $65 million (FY2006).² The Administration requested $89 million for the
first year and $100 million annually for each subsequent year.
As with earlier years, the FY2007 budget request is $100 million. However, the
House FY2007 Labor/HHS/Education appropriations bill (H.R. 5647; H.Rept. 109-515;
reported June 20, 2006) provides $54.55 million — the same level of support as in
FY2005, $9.8 million less than for FY2006, and $45.5 million below the requested level.
The Senate version of the FY2007 appropriations measure (S. 3708; S.Rept. 108-287;
reported July 20, 2006) follows the House, providing $54.55 million.
How Does CCF Operate? The CCF is administered by the DHHS Office of
Community Services (OCS) in the Administration for Children and Families (ACF). The
CCF program consists of three parts: grants to intermediary organizations under a
“demonstration initiative,” direct awards (“mini-grants”) to “grassroots” groups for a

¹ For related information on the President’s faith-based initiatives, see CRS Report RL32736,
Charitable Choice Rules and Faith-Based Organizations, by Joe Richardson.
² These appropriation amounts do not reflect across-the-board rescissions in recent years and a
special additional discretionary cut made by the Secretary of Health and Human Services in
FY2006 — e.g., a 1% ($650,000) rescission and a further $44,000 discretionary reduction in
FY2006.

“targeted capacity-building initiative,” and various technical and support services
provided by the federal government (e.g., research, information technology support,
printing services). The ACF/OCS determines the balance of spending among these
objectives, and grants and contracts are made through the ACF/OCS — not states or,
except in the case of the demonstration initiative sub-awards (see below), other entities.
What Are the Rules of the CCF Demonstration Initiative? This effort offers
matching funds for competitive grants to relatively large “intermediary” organizations that
have established relationships with faith-based and community organizations. These
intermediary organizations are seen as forming a “bridge” between the federal government
and grassroots groups. Funding is aimed at helping small faith-based and community
organizations improve their effectiveness, management, training, and other skills; it does
not support the actual provision of services. Intermediary grantees (1) use the majority
of funding to provide technical and other aid to small faith-based and community
organizations and (2) make sub-awards to faith-based and community organizations for
training, technical assistance and capacity-building. Eligible groups for demonstration
awards include faith-based and community organizations, as well as units of state and
local government, institutions of higher education, federally recognized Native American
tribal governments, nonprofit organizations, and small businesses. Grantees must provide
20% of the total cost of the project. The program announcement for the FY2005 round
of grants to intermediaries (70 Federal Register 22331-22341, April 29, 2005) and the
announcement for the FY2006 round — [http://www.acf.hhs.gov/grants] — contain the
most current rules for the demonstration initiative (the FY2006 announcement includes
a separate announcement for CEY intermediary grants; see below). Grant applications
typically are due in the late spring (near the end of June 2006), and awards are announced
in August or September (September 29, 2005, for FY2005 grants).
Intermediary grantees must use at least 40% of their federal funding for sub-awards
and a minimum of 50% for “direct and individualized technical assistance” activities (e.g.,
“one-on-one” help for local groups’ leadership). Grant awards are directed to
organizations dealing with social service needs of named at-need groups — the homeless,
prisoners re-entering the community, children of prisoners, elders in need, at-risk youth,
and those in transition from welfare to work — as well as to organizations that help
couples who choose marriage for themselves to develop the skills and knowledge to form
and sustain healthy marriages. Other rules: participation must be open to faith-based and
community-based organizations; grantees must be chosen through a competitive process
and may not be pre-selected; selection criteria must not include consideration of the
religious nature of a group or the religious nature of the program it offers, but the
approach must include outreach to both faith-based and community organizations;
funding cannot be used to support “inherently religious” activities and, if engaged in,
recipient organizations must take steps to separate them from CCF-funded services in
time or location.³
FY2005 demonstration initiative grants totaled to $33.3 million — $17.7 million in

20 new awards, plus $15.6 million for more than 20 continuation grants. Through

³ Rules pertaining to the treatment of faith-based organizations (including the prohibition against
federal funding of inherently religious activities) can be found at the DHHS website:
[http://www.hhs.gov/fbci/waisgate21.pdf].

FY2004, intermediary grants typically were for three years. However, beginning with
FY2005, the new awards are being made for up to 17 months.
The CCF has announced the availability of a total of $42.8 million in demonstration
grants for intermediaries for FY2006, up 29% over FY2005. The allocation of FY2006
intermediary grant awards is also to be very different from earlier years — (1) up to 10
new intermediary grants totaling $5 million, (2) $7.8 million to continue 14 existing
grants, and (3) $30 million for some 100 awards for a new Communities Empowering
Youth (CEY) project. The CEY project will offer grants totaling up to $750,000 each
over the grant period to intermediary organizations building the “organizational capacity
and sustainability of faith-based and community organizations working to provide
alternatives to [youth] gang involvement and violence.”
What Are the Rules of the CCF Targeted Capacity-Building Initiative?
The targeted capacity building initiative makes direct, competitive, one-time, one-year
“mini-grants” of up to $50,000 to small (e.g., an organization with an operational budget
of less than $500,000) nonprofit community and faith-based groups. The purpose is to
assist grantees in improving their programs’ effectiveness and sustainability, access funds
from various sources, and replicate model programs and best practices. These awards are
100% federally funded and do not support the actual provision of services. As with grants
to intermediaries, the use of federal CCF funds for inherently religious activities is
prohibited, and the religious nature of the applicant is not to be a factor in approval (see
the discussion above).
Mini-grants are given to small organizations serving “distressed communities” (those
with high unemployment/poverty rates) in four social service priority areas: at-risk youth,
the homeless, marriage promotion/support, and rural community services. The program
announcement for the FY2005 round of mini-grants (70 Federal Register 22322-22331,
April 29, 2005) and the announcement for the FY2006 round — [http://www.acf.
hhs.gov/grants] — contain the most recent rules for targeted capacity-building mini-
grants. Grant applications typically are due in the late spring (near the end of June in
2006), and awards are announced in August or September (September 29, 2005, for
FY2005 grants).
FY2005 mini-grants were made to 310 organizations, and totaled $15.2 million. The
majority (180) were for programs serving at-risk youth. Organizations dealing with
marriage promotion/support, the homeless, and rural communities shared the remainder
equally.
For FY2006, the CCF has announced the availability of new mini-grants totaling $15
million for an expected 300 awards.
What Has CCF Spending Been? The table below summarizes CCF grant
awards and other spending through FY2005. FY2006 and FY2007 funding is discussed
in a later section of this report covering Current Appropriations and Funding
Allocations.
The bulk of the money has been spent for grants to intermediaries. However, it
should be noted that in FY2005, there was a marked shift in funding toward mini-grants
and shorter-term awards to intermediaries, as well as an increase in spending for support

services.⁴ DHHS figures indicate that more than 3,000 organizations (including those
getting sub-awards from intermediaries) have received CCF money since the program
began in 2002. For details on grants that have been made and newly announced grants,
see [http://www.acf.dhhs.gov/programs/ccf].
CCF Spending (Obligations): FY2002-FY2005
(in millions)
FY2002 FY2003 FY2004 FY2005 Total
Demonstration matching^$24.8^$28.4^$38.0^$33.3^$124.5
awards to intermediaries
⁽ⁿ^e^w^aⁿ^d^c^o^ntⁱ^nui^{ng gr}^aⁿ^t^s⁾
Targeted capacity-02.65.015.222.8
building mini-grants to
small organizations
Research and information5.13.84.76.019.6
technology grants,
grant/review panel costs,
printing costs, other
support
All spending (obligations$29.9$34.8$47.7$54.5$166.9
from appropriations)
^Sources^:^Bu^dg^{et j}^u^s^tif^ication^s^f^o^{r th}^{e DHHS}^{, A}^C^F^:^F^Y^2003,^F^Y^2004,^F^Y^2005,^an^d^F^Y^{2006; A}^C^Fⁿ^e^w^s
^rel^eas^es^anⁿ^o^uⁿ^cⁱⁿ^g^g^r^an^t^aw^ards^f^o^{r F}^Y^{2002, F}^Y^{2003, F}^Y^{2004, a}ⁿ^d^F^Y^2005;^t^h^{e A}^C^F^O^f^fⁱ^{ce of}
^L^e^gⁱ^s^l^ation^an^{d B}^u^dg^{et (OL}^A^B⁾^.
How Can One Apply for a CCF Grant? For details about the CCF and how to
apply for CCF grants, see [http://www.acf.dhhs.gov/programs/ccf]. Also, see the
regulations cited above. The CCF Catalog of Federal Domestic Assistance (CFDA,
[http://www.cfda.gov]) number is 93.009.
Current Appropriations and Funding Allocations. For FY2007, the
Administration has asked for a CCF appropriation of $100 million. (See the earlier
discussion — How Much Has Congress Appropriated for the CCF? — for details on
congressional action on the Administration’s FY2007 request)
For FY2006, the Administration also asked for $100 million, with $50 million of
CCF money to be earmarked for a new “anti-youth-gang initiative” of competitive grants
to community and faith-based organizations to help youth at risk of gang influence and
involvement. Information about the proposed three-year ($150 million) anti-gang project
is available through the White House website of the Office of Faith-Based and⁵

Community Initiatives.
⁴ Increased money for mini-grants has not continued into FY2006. Instead new funding has gone
to intermediaries (especially the new CEY project) and an increase in support spending (see later
section on Current Appropriations and Funding Allocations).
⁵ The Office’s website is at [http://www.whitehouse.gov/government/fbci/].

Congress’s initial FY2006 appropriations measures for the DHHS (H.R. 3010)
included CCF funding totaling $75 million (House) and $95 million (Senate). The House
earmarked $25 million of this amount for the Administration’s anti-gang initiative (H.
Rept.109-143); the Senate stipulated $45 million of its amount (S.Rept. 109-103). But
the final appropriations measure covering the CCF (P.L. 109-149) appropriates a total of
$65 million for FY2006, and no specific earmark for a youth-oriented anti-gang initiative
is included. This amount has been reduced to $64.3 million after (1) a 1% across-the-
board rescission directed for discretionary programs ($650,000) and (2) a $44,000 cut
carried out under the authority the appropriations law gave to the Secretary of Health and
Human Services.
In May 2006, the CCF announced how it would allocate its FY2006 funding and
asked for grant proposals. Demonstration awards (new and continued) to intermediaries
are to total $42.8 million (including $30 million for the new CEY project; see the earlier
discussion of the CCF demonstration initiative). This effectively provides $30 million
for the Administration’s proposed anti-gang project. Mini-grants are funded at $15
million. And the remainder ($6.5 million) is to go to research and other support activities.
FY2006 grants are expected to be announced in August/September 2006.
Legislation. On January 24, 2005, Senator Santorum introduced a bill — S. 6, the
Family and Community Protection Act of 2005 — that includes provisions intended to
provide underlying authorizing law for CCCF-like activities that would be administered
under the aegis of several federal agencies. Title III of the bill proposes to authorize the
Departments of Health and Human Services, Housing and Urban Development, and
Justice, as well as the Corporation for National and Community Service, to award grants
(and enter into cooperative agreements with nongovernmental organizations) that provide
technical assistance to small community-based groups, information about and assistance
in “capacity building,” information about and assistance in identifying/using best
practices for delivering aid (and encourage research on these practices), information about
and assistance in utilizing regional intermediary organizations to boost community-based
organizations’ capabilities, and assistance in replicating effective programs.
Appropriations totaling $150 million in FY2006 (and “such sums as may be necessary”
for FY2007-FY2009) would be authorized. This bill effectively replicates the CCF
provisions of the CARE Act of the 108^th Congress — contained in H.R. 7 (passed by the
House) and S. 476 (adopted by the Senate) — although it does not specifically create
authorizing legislation for the existing CCF.