This essay examines the similarities and differences in how Great Britain and the United States fund religiously affiliated schools and other nonprofit organizations. While each country has adopted a different model of church-state relations, their actual policies tend to converge. This article contends that both nations' funding policies fall short of attaining complete government neutrality in supporting people of all faiths and those of none, and proposes an alternative policy that promotes a genuine neutrality. Copyright 1995 by The Policy Studies Organization.