Religious Nonprofit Denied Gov. Funding Over "Christians-Only" Hiring Mandate

Should a Christian nonprofit be denied federal funding over a “Christians-only” hiring policy? That’s the question at the heart of a federal lawsuit out of Michigan, where a Grand Rapids-based charity which resettles refugees suddenly had federal funding pulled after instituting a faith pledge for employees.

Should nonprofits that only hire Christians be prohibited from receiving government funding?

Christians-Only Mandate

“A family-centered nonprofit supporting children and families with world-class social services, all designed to help families thrive,” is how Bethany Christian Services describes itself on its website. The Michigan-based nonprofit has been operating for more than 50 years and has more than 2,000 employees, making them a leader in refugee services and adoption in the United States. 

Bethany is a Christian charity with a hiring mandate: to work for the group, you must have Christian beliefs.

That rule was not strictly enforced for many. But late last year, a new CEO took over and informed staff that moving forward no exemptions would be made to the hiring policy. Employees would be required to sign a statement of faith affirming their belief in Jesus Christ, God, and the resurrection. 

Internally, the sudden pivot was controversial. One anonymous employee said that “people were shocked” at “how hard and fast the policy came down.” 

“There was no conversation,” the employee said. “There was no ‘Let’s come together and talk about how this policy might be implemented.’ It was, ‘This is what’s happening, and you’re going to adhere to it.’”

Here's what the statement of faith reportedly looks like:

Funding Denied

Following the renewed enforcement of the hiring mandate, the Office of Global Michigan (OGM), part of the state’s labor department, began denying Bethany longstanding bids on contracts and federal funding which Bethany had long relied on.

Bethany believes it’s because of their faith-based hiring practices. Now they’re suing the state, alleging religious discrimination.

“For the first time since Bethany began serving refugees in Michigan in 1962 and became a contractor of the state of Michigan in 1981, the organization has been denied refugee-resettlement services contracts because of their religious employment practices, even though federal law has long supported this civil right,” reads Bethany’s federal lawsuit. 

Federal law affirms that Muslim nonprofits can hire Muslims; Jewish nonprofits can hire people of Jewish faith; and Christian nonprofits can hire Christians,” says Nhung Hurst, Bethany’s general counsel. “For 50 years, this has been a long-standing American civil right that has never been controversial. We are disappointed that the state of Michigan would engage in religious discrimination.”

What Happens Next?

OGM is declining to comment on the lawsuit, but this isn’t the first time Bethany’s run afoul with the state. In 2019, the state of Michigan warned them that they could not discriminate against LGBTQ couples when fostering, prompting Bethany to overturn their longstanding anti-LGBTQ policy rather than risk a state investigation and possible legal trouble.

For now, Bethany says they simply want to continue helping people. “This is not about funding,” says Nhung Hurst, Bethany’s general counsel. “This is about people who will one day wake up and there won't be services if we don't get an answer.”

What do you think? Religious charities are legally able to require employees to adhere to their faith-based values, but should state and federal funding go to organizations that discriminate on the basis of religion?

Are these organizations entitled to public funds, and is it religious discrimination when they don’t receive them?