; or (C) a nonprofit corporation, association, educational institution, society, or other nonprofit entity that holds itself out to the public as substantially religious, has as its stated purpose in its organic documents that it is religious, and is substantially religious in its current operations. . (b) Exemption Section 702(a) of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e–1(a) ) is amended— (1) by inserting (1) after (a) ; (2) by striking State, or and inserting the following: State. (2) (A) This title shall not apply ; and (3) by adding at the end of paragraph (2) the following: (B) Exempt Organizations With respect to claims of employment discrimination because of sexual orientation or gender identity, nothing in this subchapter shall apply to the following: (i) a church or its integrated auxiliaries, a convention or association of churches, or a religious order, as described in section 6033(a)(3)(A)(i) and section 6033(a)(3)(A)(iii) of the Internal Revenue Code of 1986; (ii) a religious organization described in sections 501(c)(3) and 509(a)(1), (2), or (3) that is covered by an Internal Revenue Service group exemption letter issued to a church or a convention or association of churches; (iii) a religious educational institution that is eligible for exemption under section 703(e)(2) of this subchapter; (iv) a religious corporation, association, or society under section 702(a) of this subchapter that is eligible for tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1986 and that employs only individuals of the employer’s religion, unless the employee demonstrates that the employer has not applied with reasonable consistency its religious standard cited as the reason for the adverse employment action