voluntary agencies tend to preserve family life and to prevent the necessity for placing a child outside his own home for care. While the number of children in foster family homes under voluntary agency auspices was only slightly larger in 1958 than in 1933 the number of of children in voluntary institutions had decreased from 121,000 to 74,000.

As these figures show, voluntary agencies now care for 48 percent of the children living outside their own homes and public agencies 52 percent.

Numbers of children placed by social agencies in adoptive homes since 1944 are presented in table 16. Their numbers have more than doubled during the period covered by the table. This reflects growth in adoption service on the part of both voluntary and public agencies. Financing voluntary agencies.-Although the numbers of children in foster care served by voluntary child welfare agencies have not been increasing, dollars spent for this type of care continue to rise both because of increased costs and new kinds of services. As the public agencies have borne increasingly the burden of board and care the voluntary agencies have turned to the more expensive specialized services, such as treatment centers for emotionally disturbed children. What sources of income are available to voluntary agencies? What has been happening to these sources? As public funds have increased, voluntary funds have also increased. One of the most important sources is money raised by community chests and united funds. According to a report by the United Community Funds & Councils of America, the amount raised by community chests and united funds. has increased by about 400 percent between 1938 and 1958. Data on allocations to child welfare services are included with data on family services and other social adjustment services. Allocations to the major fields of service have increased as follows: General dependency and social adjustment services, up 195 percent; health, up 285 percent; recreation, up 565 percent. These trends are presented in table 18. Data in this table have not been adjusted to take account of changes in dollar value. The figures indicate that voluntary welfare services have not done nearly as well as voluntary services for health and recreation. A more detailed picture of chest allocations since 1950 is shown in table 19. Among prominent trends in the voluntary agency field is more service to middle-income groups, with a corresponding increase in the practice of charging fees. Fees contribute substantially to the agency's financial resources.

Public-voluntary financial interrelationships: The facts available show that public payments to voluntary child welfare agencies and institutions for foster family and institutional care and other child welfare services are substantial. Preliminary findings of a "Study of Public Expenditures for Care of Dependent and Neglected Children by Voluntary Agencies," by Miss Ruth Werner, professor at the School of Social Work, Western Reserve University, indicate that only four States that replied to her 1957 inquiry said they were not using public funds for care of dependent and neglected children under auspices of voluntary agencies, either on a lump-sum subsidy or a per case basis.

'Preliminary report issued in the course of the study. Made available to the Children's Bureau in a letter June 9, 1959.

Data submitted by 38 States to the Children's Bureau in 1956 showed that about one-half of the total outlay for foster care was expended by public agencies directly and one-half paid to voluntary organizations. However, excluding Pennsylvania and New York from this picture, the share spent directly by public agencies was 86 percent, and the share paid to voluntary organizations, 14 percent. In 28 of the 38 States, four-fifths or more of foster care expenditures was by public agencies directly. In only three States was the share paid to voluntary organizations more than 50 percent-in Pennsylvania (84 percent), New York (79 percent), and North Dakota (56 percent). Within the northeastern region alone, wide differences existed; in contrast with Pennsylvania and New York, the voluntary share in Maine, Massachusetts, and Rhode Island combined (the only other States in the region for which information was available) was 7 percent. Smaller disbursements to voluntary organizations may be due to lesser availability of voluntary facilities in some States, to State differences in public policy concerning purchase of care from such organizations, or to both of these causes.

Sizable expenditure flows to voluntary organizations occurred in a number of States where the percentage was substantially lower than in Pennsylvania, New York, and North Dakota. Illinois paid voluntary agencies over $1 million in 1956 (36 percent of its total foster-care expenditure; Oregon and Washington paid over $600,000 (42 percent and 30 percent, respectively); and Indiana and Ohio paid over $500,000 (24 percent and 11 percent, respectively).

Public funds paid to voluntary agencies rarely cover full cost of Usually a "net cost," often substantial, remains that must be met out of other funds.

The Division of Program Research of the Social Security Administration, from reports published by United Community Funds & Councils of America for a limited number of urban areas, estimates that in both 1938 and 1955 voluntary agencies serving children received one-fifth of their income from public funds.

Problems in financing voluntary services.-The cost of serving children in institutions has been rising steadily. The cost of foster home care is also rising. Data collected by the Child Welfare League of America from its member agencies show a 42-percent rise in the median base board rate, defined as "a scheduled rate for schoolage children who present no extraordinary problem," from $31 a month in 1946 to about $44 a month in 1954. As of October 1958 the median board rate had risen to $52 a month, an 18-percent increase over 1954. Base board rates paid by member agencies ranged widely in 1958 from $35 to $82 per month.

PARTNERSHIP OF PUBLIC AND VOLUNTARY AGENCIES

Title V, part 3, of the Social Security Act provides that "the facilities and experience of voluntary agencies shall be utilized in accordance with child-care programs and arrangements in the States and local communities as may be authorized by the State."

The 1958 amendments authorizing use of Federal funds for child welfare services in urban areas make cooperation between public and private agencies more important than ever before to strengthen on-going service programs and to avoid gaps or duplication in service.

Public services have resulted in expansion of voluntary agency programs During the past 20 years the expansion of public child welfare programs has been accompanied by the extension of voluntary services. The undertaking of basic child welfare services by public agencies in some instances may have resulted in redirection of voluntary services, but without reducing the number of children served. The majority of State and regional reports shows little or no reduction in numbers of children served by voluntary agencies. In some States, the number of voluntary agencies has grown.

The following generalizations are based on reports from 20 States: 1. As public agency programs have expanded, voluntary serv ices have become more selective and specialized. Voluntary agencies are giving more attention to care and treatment of individual children, including adoptive placements, specialized foster homes, counseling in parent-child relationships, and new projects and services. In a few of the reporting States, voluntary agencies offering specialized services have increased either in number, volume of children served, or quality of service provided. 2. Federal child welfare services funds have helped State departments of public welfare to work out a more integrated statewide program with voluntary agencies, thereby extending and strengthening both programs.

3. Federal child welfare services funds have been used directly to strengthen voluntary agency services through consultation and staff development and, indirectly, through recruitment of additional personnel trained under the educational leave program of public agencies.

Public and voluntary agencies plan together for extension of services

Reports from all sources give examples of cooperative planning on a statewide basis for extension of services. Exchange of information and ideas and pooling of resources has, in many instances, pointed up unmet needs, improved standards and quality of care, extended services to children formerly unreached, and established new facilities for child care.

Cooperative ventures by public and voluntary agencies to extend or improve services to children have included:

1. Planning and formulating their complementary roles so as to develop comprehensive programs providing maximum coverage. 2. Studies and surveys to identify available resources, service gaps, and unmet needs of all children, including those presenting specific problems the unmarried mother, the delinquent child, the handicapped child.

3. Demonstration projects and facilities for the emotionally disturbed, mentally retarded, and physically handicapped child. 4. Statewide or local planning groups in program development, legislation, research.

5. New services such as homemaker, care following discharge from institutions, specialized foster homes.

6. Mutual consultation and technical assistance.

Public and voluntary agencies work together on staff development

Often institutes, workshops, and other staff development activities supported by Federal funds, are open to staff of voluntary as well as public agencies.

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Voluntary agencies have provided leadership for workshops and institutes sponsored by public agencies and consultation in special areas or on specific problems.

Federal child welfare services funds have helped to extend and strengthen staffs of voluntary agencies. Although most States require that staff receiving Federal funds for training under educational leave programs return to the public welfare program for at least the length of time of the leave, many of these staff members later go to voluntary agencies.

Public and voluntary agencies supplement each other in serving individual children

Casework planning between public and voluntary agencies in behalf of individual children is common practice in a large majority

of States.

Examples of these cooperative efforts range from planning among local agencies, both public and voluntary, on how to meet the needs of a specific child to joint development of statewide resources to serve special groups of children. Such complementary activities have helped to eliminate gaps in service, made possible more effective use of existing community resources, and stimulated development of experimental programs. Children, especially those with special problems, have gained much from these joint efforts.

Examples of joint planning between public and voluntary agencies have included:

1. Adoption resource exchanges in almost half the reporting States. This service has, in many instances, facilitated placement of children with handicaps or those from minority groups. It has helped both voluntary and public agencies to select homes suited to individual children.

2. Cooperative casework planning by public and voluntary agencies for children in need of foster family or group care.

3. Promotion of specialized services and planning for children of working mothers, handicapped and emotionally disturbed children. Public and voluntary agencies have joined forces in programs of public education and interpretation, in fund-raising campaigns, and in community planning councils.

Public and voluntary agencies cooperate in development of State plans and budgets for use of Federal funds

States that have used voluntary agencies in this planning have found that such cooperation brings greater support from the community and results in better service to children.

Of the 17 States that responded to the question of voluntary agency participation in developing State plans and budgets for use of Federal child welfare services funds, only 10 report specific use of voluntary agencies in formulating their plans and budgets. Voluntary agencies were asked for suggestions and recommendations, public and voluntary agency executives met together to plan use of child welfare service funds, and voluntary agencies reviewed and discussed plans and budgets with State agencies. The remaining seven had no formalized plan for this purpose.

Apparently every State welfare department does not take sufficient advantage of the opportunity to develop their plans and budgets for

use of Federal funds with advice and support of voluntary agencies giving similar services to children.

States that do use voluntary agency help in budget planning, particularly in urban areas, report many positive results-expansion of community service programs, initiation of research projects and services, or development of resources to meet special needs.

Public and voluntary agencies work to develop standards

Responses from almost all States regarding joint efforts of public and voluntary agencies to develop standards for child care reflect a significant change from earlier practices of State agencies. The participation of voluntary agencies in planning groups for standard setting has provided a ready medium for initiation of demonstration projects, better use of existing resources, mobilization of community action, and support of constructive legislation for children.

Public and voluntary agencies join forces for sound legislation

Approximately two-thirds of the States reported activity during 1959 in connection with child welfare legislation. In many States public and voluntary agencies joined forces in efforts to strengthen child welfare legislation on foster care, adoption, licensing, children's codes and delinquency prevention and treatment.

FEDERAL FUNDS HAVE EXTENDED AND STRENGTHENED PROGRAMS

Both the Children's Bureau and the States from the beginning recognized the importance of skilled personnel in extending and strengthening State and local child welfare programs. Consequently, State public welfare agencies have over the years used Federal funds primarily for employment of child welfare staff.

The majority of these have been local workers in areas predominantly rural as provided in the Social Security Act of 1935. State and local funds for the most part have been used to pay salaries of workers in urban areas.

States have also used Federal funds for staff to give supervision or consultation to local welfare departments, to develop program standards, and to provide specialized help such as in adoption, institutional care, juvenile delinquency, day care, community organization and planning, and services to the mentally retarded, the emotionally disturbed, and children of migrant farmworkers.

Staff development

Soon after passage of the Social Security Act, States began using Federal funds for graduate training in social work of child welfare personnel, and this represented a pioneering venture in the area of public welfare. Today the use of educational leave by public welfare agencies is common practice. With few exceptions, Federal child welfare services funds have been used to pay 100 percent of the cost of such leave for personnel carrying some responsibility for child welfare.

One State expressed what this has meant to State and local public welfare programs in the following words: "Funds for scholarships have been the backbone of children's services in the department of public welfare. If these funds had not been available it would not