Catholic Charities of Rockford will end its state-funded foster care and adoption services on the day Illinois' civil unions take effect, the Chicago Tribune reported.

The charity services 11 counties and its decision could displace the 350 foster children it serves and leave 58 employees out of work.

Illinois' civil unions law takes effect on Wednesday, but a mandatory one-day waiting period makes Thursday the first day gay and lesbian couples may tie the knot. Governor Pat Quinn and Chicago Mayor Rahm Emanuel will attend an inaugural event celebrating the unions of 30 gay couples.

Officials cited the law's silence on adoption in announcing their decision.

“While we understand leaving this work will be very painful for our client families, employees, volunteers, donors and prayerful supporters, we can no longer contract with the state of Illinois whose laws would force us to participate in activity offensive to the moral teachings of the church – teachings which compel us to do this work in the first place,” said Frank Vonch, director of social services for the Diocese of Rockford.

Whether state laws exempts religious institutions from placing children with couples in a civil union remains unclear. Gene Svebakken, president and CEO of Lutheran Child and Family Services, told the paper that he's been advised by lawyers that state laws already exempt religious agencies.

The law's start has also prompted opponents to launch a petition drive to constitutionally ban gay marriage in Illinois.