To ensure fair treatment of certain charitable organizations and recipients of Federal financial assistance, and for other purposes.

The Fair Treatment of Religious Organizations Act aims to prevent federal agencies from discriminating against faith-based organizations due to their religious beliefs or practices. Specifically, the bill would prohibit the Internal Revenue Service (IRS) from stripping an organization of its 501(c)(3) tax-exempt status based on its views regarding marriage, sexual conduct, or gender identity. It proposes that these religious beliefs should not be used as a basis for determining that an organization is acting against established public policy.

Additionally, the legislation seeks to ensure that religious groups can participate in federal grant and contract programs without being forced to compromise their religious standards. It would prevent the government from conditioning federal financial assistance on an organization's willingness to change its internal policies or employment decisions. This includes protecting the right of religious employers to hire individuals who share their faith and adhere to their religious codes of conduct.