This paper explores the complex dynamics between religion-based solidarity initiatives (RSIs) and local governments, focusing on government funding. RSIs, driven by religious values, support vulnerable groups but often face tension with secular, bureaucratic expectations. Using an institutional logics framework, the study identifies sources of tension and examines how RSIs in Antwerp and Louvain, Belgium, navigate these challenges. Our findings show that by mobilizing faith capital, RSIs strengthen community trust and resilience, enabling strategies such as segmentation or strategic non-engagement to counter government pressures while safeguarding their religious mission. However, state pressures can risk turning RSIs into “blocked organizations”, forcing them to abandon their religious mission. This research sheds light on how RSIs balance accountability to religious communities and government actors, offering insights into their strategies to preserve autonomy.