Faith-based organisations (FBOs), especially in the European context, are both interesting and understudied. A century ago, Max Weber noted that religious organisations must face the dilemma of administrative versus higher authority. They are unique as they are placed between the state and the people they serve yet they are committed to follow their faith values. In his quest to understand power and organisations he was puzzled by these organisations that, on the one hand, had to function rationally like all other organisations and accumulate resources, maintain staff and interact with their environment, while on the other hand, they were constrained as they had to follow a semi-strict religious doctrine. The tension arising from attempting to comply with these two authorities can cause serious conflict and threaten the faith-based organisation's ability to function. In one of my studies I came across a religious school that was offered by the state a large sum of money to run an afterschool programme, which would be required to include sex education. The school desperately needed the money but found the stipulation of teaching sex education in contradiction to their religious beliefs. After lengthy debates the school declined the money and offered a much more limited version of an afterschool programme.

The administrative sides of FBOs are changing rapidly as a response to changes in society, technology, political power and members’ preferences and willingness to pay; their faith side has become more robust and at times in conflict with their administrative side. This dilemma is emphasised in welfare-related FBOs. The quest to evangelise and instill a strict moral code as well as care for others as an actualisation of the dictum ‘care for thy neighbour’ is strong among most religions and is often one of the main motivations behind the existence of FBOs. In many Western democracies, FBOs operating in the welfare arena have to collaborate with governments, keep faith separate from service, apply universalist principles of eligibility, operate according to state laws and, in the process, may find it challenging to keep their commitment to their higher authority.

The welfare state that emerged after the Second World War was the greatest social promise in the history of the human race. It was intended to cover all human and economic needs from cradle to grave and to protect all members of society against all social falls and ills.