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In the United States, the term faith-based has come into public use as an abbreviation of "faith-based initiative", e.g. U.S. President George W. Bush's proposal to grant religious charitable social-service groups federal money via the White House Office of Faith-Based and Community Initiatives. "Faith-based" is often used as a euphemism for "religious" in this context, in order to avoid the thorny issues of separation of church and state.

A faith-based organization, a term used mainly in the United Kingdom and U.S. to describe a particular niche within the Voluntary Sector. Generally, but by no means exclusively, a faith-based organization will be philanthropic in nature, constituted as a charity or non-profit, and aligned with one of the world's major religions. For many years faith-based organizations have played major roles in society, delivering a variety of services to the public, such as caring for the infirm and elderly, advocating justice for the oppressed and playing a major role as NGO's in humanitarian aid and international development efforts.

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