SCLC #328 — United Way welfare purchase-of-services: two contracts

An undated six-page briefing among UCS materials in the Rosa Parks Papers explains the post-1967 Social Security Act purchase-of-services framework. The key point is not only a conditional 75% federal / 25% state match (so one qualifying private dollar could draw three federal dollars) — it is that two separate agreements are required:

• Donation agreement — private donor transfers money to state/local government under governmental administrative control, generally unrestricted (limited exceptions for kind of activity or community).
• Service-provider agreement — the welfare department separately contracts with an agency for defined service units, with costing, productivity and evaluation capacity.

A donation to government is not itself a purchase-of-service contract with the donating agency. Match is conditional on an HEW-approved state welfare plan; historical guidance ≠ current law. The final page calls the phase experimental and presses for evaluation.

Context for Detroit DSS/UCS “seed money” stages (#321–#325) without proving any listed proposal complied or received reimbursement. Custody in Parks Papers ≠ Parks authorship. Distinct from #326 (Nov 1971 alternatives) and #327 (July 1971 funding inventory).

Immutable report: united-way-welfare-service-two-contracts-1971.