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You've misreported Obama's position on what faith-based organizations would be allowed to do.
The would NOT be allowed to use faith in hiring decisions. This was misreported in some news accounts. But see the memo from the Obama campaign below and you'll see that it was in error. Please correct this in your diary.
"The new partnership will not endanger the separation of church and state, so long as a few basic principles are followed. First, if an organization gets a federal grant, it will not be permitted to use that grant money to proselytize to the people it serves, and the group will forbidden to discriminate against them on the basis of their religion. And groups will be required to comply with federal anti-discrimination laws in their hiring practices—including Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex, or national origin."
http://thepage.time.com/obama-campaign-memo-for-tuesday-july-1/
