Is that where a Muslim organisation would get round the rule they would be registered as a religious organisation rather than charity?
The California court decided that Catholic Charities is not a religious organization based on three key points: 1) Catholic Charities does not have a mission oriented primarily towards religious practice, education, etc.; 2) Catholic Charities employs people regardless of their religious background; and 3) various levels of government serve as the organization's primary source of funding.