I also wonder how many times our churches have pulled their punches or accepted just a little evil (with the best of intentions, naturally) in order to maintain that coveted tax exempt status.
My alma mater got into a scuffle about twenty years ago over federal funding and those strings that come attached; ultimately they lost in a court decision. So they jettisoned everything that even hints at federal funding and counted on private donations and trusts.
Now, the college does as it pleases guided by its own Christian principles and not by federal edicts. As a benefit, they don't have to deal with the paperwork and other nonsense associated with ensuring that the government is happy with their compliance.
And the students get a private Christian liberal arts education at the cost of a public state school.
The English Bishops (and Christian schools here in the US and abroad) would do well to follow suit.