For-Profit Social-Service Contracts Could Hurt the Poor, Leaders Say

In an effort coordinated by Catholic Charities USA, officials of 18 major social-service organizations have issued a statement warning that the poor could suffer as government officials turn to for-profit companies to provide social services to the needy.

The statement calls for stronger government standards to protect poor people and to ensure that public money is spent efficiently as more and more for-profit companies provide social services under contracts with government.

“Before unconditionally embracing the entrance of the for-profit organization into the social-service arena, society, and particularly government, has an obligation to confront some real conflicts of interest and install safeguards to protect the nation’s most vulnerable citizens,” the statement says.

As a result of sweeping changes in the welfare system and other government programs, officials throughout the nation are turning to for-profit companies to provide social services to the poor and elderly. The trend puts commercial enterprises in direct competition with non-profit organizations that serve the needy.

The statement was signed by top executives at Big Brothers Big Sisters of America, Boy Scouts of America, Goodwill Industries International, the Salvation Army, and other groups.

The complete statement can be viewed online at http://www.catholiccharitiesusa.org.