I have changed my mind on Faith based initiatives

I have been a long time proponent of faith based initiatives. The reason is obvious, faith based groups do some of the most good for people who need help. In the back of my mind I have always been afraid of the sacrifices and compromises that they might have to accept to receive the money.

Recently the Catholic Charities of Boston had to choose between the church teaching on homosexuality and Massachusetts law banning discrimination on the basis of sexual orientation.
(See the wonderful essay on Townhall by Jeff Jacoby)

While the Peoples Republic of Massachusetts is not representative of the rest of the country, this incident does show me that my well found skepticism will eventually take over these initiatives.
Government must be the government of all people. In our present time, possible discrimination of a small minority counts as illegal, whether real or imagined. Faith based groups do to much good, to risk having them become ineffective by accepting the watered down requirements that the Federal Government will eventually give them.

This pains me, as I believed this was a step in the right direction, but I now see government cannot stop its hatred of all things faith, even it good is done by the group that it is regulating out of existence.