A coalition of faith-based charitable organizations has sued the state (technically, it has sued certain named officials) for excluding certain of its member religious organizations from the Wisconsin State Employees Combined Campaign, a vehicle through which the state promotes and facilitates charitable contributions by its employees. The excluded organizations require their employees, board members and volunteers to agree with the religious beliefs of the organizations and this includes doctrine regarding sex outside marriage, including, but not limited to, "homosexual activity."
But no charities are permitted to participate in the Campaign unless they do not discriminate on the basis of, among other things, creed or sexual orientation. Although the Campaign has exempted the Boy Scouts, it does not permit groups like the Christian Legal Society or the Fellowship of Christian Athletes to participate.
The complaint alleges that the Campaign allows the participation of groups with very diverse political, social and religious views. Secular groups are permitted to require that their employees and volunteers ascribe to these organizations' purposes and beliefs. Religious groups - at least those who require adherence to a particular creed or sexual morality - are not.
This ought to be found to be unconstitutional. The state has no business including or excluding groups from a charitable deduction program based upon religion, speech or the manner in which these groups exercise their protected associational rights.
Its also bad policy. If the state doesn't want to facilitate charitable giving by its employees, it doesn't have to. But if its going to do so (and,as I'm sure it does, to promote giving to that campaign), it ought not to discriminate on the basis of what those charities believe.
You can read the complaint here.