This allows religious organizations to include religious principles and teachings as part of their programs. Providing social services, particularly to our society's most vulnerable members is a government responsibility, which public employees perform exceedingly well. Turning over this responsibility to private organizations results in loss of accountability - both for public money, and for the services provided. A publicly administered system has safeguards against fraud and waste, and monitors program results. Private organizations however are not subject to these same rules.
Private organizations are susceptible to economic downturns.
Faith-based institutions may incorporate religious teachings and requirements into their programs, discriminating against those of differing beliefs. Eligibility for social services should be unbiased, based on the evidence of need, and not influenced by religious belief or any other discriminatory factor.