If both the White House and its critics do some rethinking, they can come to an agreement that protects liberty. At a minimum, we should agree to define a religious organization as one working to inculcate its religious values, but part of that may be helping widows and orphans, ministering to the sick and the imprisoned, and following Christ in other ways as well.
Similarly, it's fine to say that a religious organization should employ in supervisory positions those who share its religious tenets—because how else will the organization teach those values? But a stipulation that a Christian organization has to employ only Christians would stop a group from hiring as a janitor someone from the community perhaps on his way to embracing Christ—or it could push some who need a job to make premature confessions of faith.
What's dead wrong: The Obama demand that religious groups serve primarily those who share its religious tenets. Jesus helped many in need without first demanding a confession of faith. His followers have done the same for two millennia. The Obama administration can end this battle in the culture war by recognizing that Christians are called to minister to non-Christians, and have enriched America in the process.
Government should not get in the way.