This is how Catholic Charities lost a similar case in California when it came to a state government mandate involving contraception and/or same-sex "marriage." The court applied a very objective set of standards, and determined that Catholic Charities didn't meet even a bare minimum standard for a "religious-based group." The court basically ruled that the group is a large non-profit business operation with no religious foundation at all.
And that is why the 1st Amendment has “...or prohibiting the free exercise thereof...” included, when referring to ones religion.
Unfortunately, our current President, and even some of the current Supreme Court members, do not understand this very simple, straight forward, plain language.
That is why I ceased giving money to CC long ago. Some CC money has gone to Planned Parenthood, even.