Catholic Care, a Leeds-based adoption service and social care charity, has lost its appeal to the Charity Tribunal over its selection policy.
The Roman Catholic charity ran into trouble with the Equality Act (Sexual Orientation) Regulations 2007 (SI 2007/1263) over its policy of refusing to place children with same-sex couples.
The charity, which claims it may have to give up its adoption service, was subject to two previous rulings against it by the Charity Commission in 2009 and 2010.
The tribunal said there was no evidence to back up the charity’s claims that its donated income would suffer as a result of the decision.