Remember when the Faith-Based Initiative was billed as a "leveling of the playing field"? You don't? Have a look at this PDF from the White House site:
http://www.whitehouse.gov/news/releases/2001/08/20010816-3-report.pdfAs quoted in that document: "The paramount goal is compassionate results, and private and charitable groups, including religious ones, should have the fullest opportunity permitted by law to compete on a level playing field, so long as they achieve valid public purposes... The delivery of social services must be results-oriented and should value the bedrock principles of pluralism, nondiscrimination, evenhandedness, and neutrality." ~ GW Bush*, Jan. 29, 2001
When the original executive order was signed, there was a stipulation that religious groups could continue to discriminate on the bases of faith, lifestyle and a myraid of other attributes. While the groups would not be allowed to discrimate against the individuals they served/helped, but they would be able to discrimate during hiring employees and selecting board members.
There were other stipulations as well: religious groups were not allowed to use federal grant or contract dollars to fund any "inherently religious" activity, and they were required to separate "in time or location" services funded by direct government aid from "inherently religious activities. Religious art, icons, scripture and language within mission statements were allowed to stand.
Bush* also signed an executive order opening new Centers for Faith-Based and Community Initiatives at the Department of Agriculture and the Agency for International Development, and he directed the Federal Emergency Management Agency (FEMA) to allow religious nonprofit groups to qualify for aid after disasters.
For more information about the original executive order, have a look at:
http://www.whitehouse.gov/government/fbci/guidance_document.pdf (A PDF "Guidance to Faith-Based and Community Organizations on Partnering with the Federal Government")
Despite the executive orders, Congress moved forward to pass a modified version of the CARE Act. (This piece of legislation was on the floor when Bush* moved to sign the executive orders -- thinking he could circumvent Congress.) This bill struck down the language of the executive order which allowed faith-based groups to discriminate in their hiring practices.
This brings us back to where we are today. The non-discrimination aspect added to Faith-Based Initiatives is not good enough... Bush* has stated that if Congress does not act to strike this language, he will sign yet another executive order.
Here is a link to the White House's position paper on why religious groups must be allowed to discriminate:
http://www.washingtonpost.com/wp-srv/onpolitics/articles/booklet.pdf(This is a PDF "Protecting the Civil Rights and Religious Liberty of Faith-Based Organizations: Why Religious Hiring Rights Must Be Preserved")
In addition to the go-ahead for employment discrimination, Faith-Based groups were also granted at least one other benefit which secular groups do not have: if the faith-based group establishes a separate account for government funds received for social services, the required government audit is limited to that separate account. Now this would be a luxury some other non-profits would love to have.