Project Impact in Dayton, Ohio demonstrates what churches can accomplish through President George Bush's faith-based initiative. With most of its $1.2 million budget coming from government and foundation grants, the arm of Revival Center Ministries International served nearly 1,200 people last year.

Among its programs are a welfare-to-work initiative, truancy prevention and behavior modification. It is also affiliated with Montgomery County's alcohol and drug addiction agency.

With 26 employees and its own headquarters building, the non-profit organization looks prosperous. But when it started a decade ago, the church group only owned a dream of improving inner-city conditions.

According to Project Impact director Charlotte McGuire, churches that want to take advantage of federal grants need to be diligent in enduring the somewhat trying application process.

"The greatest thing is don't be afraid," says McGuire, who recalled the daunting, inch-thick proposal her agency had to complete when applying for its first grant in 1994.

Once the grant is awarded, McGuire added, churches need to find the right people who can put the funds to work.

"Look for people who have the same passion you do," she said. "You'd be surprised at the number of professional people who will help. You might even find a grant writer who would volunteer their time. Always share your heart and know what you're doing is faith in action."

"We're in a Nehemiah experience," echoed Sammy Campbell, former director of M-Power Ministries. A Birmingham, Ala. consortium of churches, last year the group received $170,000 from the U.S. Department of Labor for a high school dropout prevention program.

"Nehemiah used government funds to rebuild the walls of Jerusalem," said Campbell, now director of ministry evangelism for the Southern Baptist Convention's domestic missions agency. "From experience, I know it works. We have the kind of programs that touch the lives of people and that the government would want to fund."

Still, churches hoping to acquire grants need to do their homework. Dave Donaldson, whose Washington-based organization helps churches serve disadvantaged people, said government leaders have been disappointed in the quality of faith-based organizations' applications.

"There are problems with clarity of their mission and deviating from it -- matching the mission to the funding," said Donaldson, president of We Care America. "And neatness; some are handwritten. Some are more like a sermon than a proposal. There's a lot of Scripture, but they don't address the dilemma and how the money will affect the problem."

Opening the Door

Even the White House Office of Faith Based and Community Initiatives can't say exactly how much money is available through various agencies. Nor does the office know how many faith-based groups have taken advantage of funding opportunities.

Its Web site notes the Department of Health and Human Services awarded $185 billion in 2001. However, deputy director David Kuo said that doesn't include grants from such groups as the Justice, Labor and Agriculture departments.

While recognizing that maneuvering through bureaucratic requirements can prove challenging, Kuo encourages churches to use resources available to them, such as publications on its Web site listing frequently asked questions as these:

Q. What kind of grants are available?

A. Direct, such as a grant given to a homeless shelter; and block grants that are administered by states, counties and cities.

Q. How can we find out about grants?

A. The brochure "Federal Funding Opportunities for Organizations that Help Those in Need" is available at www.fbci.gov. After finding a program of interest, more information is available from the Catalog of Federal Domestic Assistance at www.cfda.gov/public/faprs.htm.

Q. Is there money set aside for faith-based organizations?

A. No. The government doesn't ask if your organization believes in God, but if your program works and meets the grant requirements.

Another lists social needs to be addressed via grants. This covers a wide spectrum, ranging from working with at-risk youth and crime prevention to seniors' needs and homelessness.

"Churches should view our office as their resource," Kuo says. "Our goal is to make the process of applying for federal grants much more transparent. That's why we created the ‘dos and don'ts' booklet and grants catalog … that faith-based organizations can apply for. Those are two of the best ways to get started."

Kuo admits that working with the federal government can prove challenging, and he hopes to take steps to simplify the process of obtaining a grant.

Still, applicants need to know how the federal government works and how to complete applications. And he insists the government can be a good partner because it helps groups understand why they failed when they don't secure funds.

"We encourage people to look at partnering with the federal government as a long-term commitment," the deputy director says. "If you stay at it, chances are high you'll succeed."

Searching For Help

A veteran of dealing with the government said churches may find it difficult striking out on their own. Steve Bogus is executive director of the Louisville, Ky., office of Catholic Charities, which administered nearly $4.4 million of grants in fiscal 2002.

That money primarily went to refugee resettlement efforts, such as special assistance, job placement and English as a Second Language classes. The Catholic group also distributes funds to three other groups involved in refugee work, including one Jewish organization.

"One thing churches might consider is availing themselves of (groups) in the community that can help develop small organizations," said Bogus, who has been with Catholic Charities for 24 years.

"It's really hard to go it alone and there are people interested in assisting upstart organizations. There are many community ministries affiliated with churches that would help develop a grant. Even the United Way may be available as a resource to do support and consultation."

Campbell endorsed the idea of using intermediaries, saying collaboration builds a stronger case and provides insights for newcomers. A church that hopes to obtain funds needs someone who knows how to write the grant and the kind of information to include, he said.

Campbell said groups can start by contacting the federal agency administering the grant to see if they sponsor workshops on applying for grants; some foundations offer similar programs.

"The other thing we learned is it's better to have a non-profit organization when applying for these grants," Campbell says. "The federal government needs to have an entity responsible for the grant. It will come and look at how these funds are being used. It makes sense to have a group separate from the church. If you don't, you could put your church under (federal) scrutiny."

Moving Forward

An Atlanta-based consultant who leads grant preparation workshops for evangelical churches suggested congregations begin by recognizing God as their source, not the government.

Donna Long of the Changing Lives Foundation said church leaders should broaden their horizons. Instead of approaching just Uncle Sam, she suggests they should call on and develop relationships with foundations and people within their communities. Otherwise, churches can find themselves too dependent on government, a source whose support, she said, tends to come and go.

Long noted that there is a "steep learning curve" in finding money is for a homeless ministry or prison outreach, but that such a search is made easier through collaboration.

Churches also need to be aware that the window of opportunity generally opens for 30 to 60 days (depending on the agency) every spring and then shuts for another year.

While many resist the idea of taking money from the government because of concerns over mixing church and state, Long says churches need to step up to the plate or other groups will receive those funds.

"This is the most awesome opportunity for the church in 100 years," said Long, a member of Building Biblical Community, a new grant-application network. "This money is going to go somewhere. Is it going to go to Baptists or Methodists? If we decide not to go after it … we're helping fund other groups."

In downtown Dayton, McGuire finds no conflict between serving the community and her faith.

"Your witness is the love of God you display in daily life," she said. "We work with people from high-risk groups, broken homes or backgrounds of addiction. Because we persist in love and in adverse circumstances, people ask, ‘Why are you doing this?' The Word says, ‘Let your light shine so people see your good works' -- not hear them."