(CNN) - President Barack Obama signed an executive order Wednesday clarifying the ground rules for religious groups partnering with the federal government through the White House's controversial faith office.

The order says that religious organizations receiving federal funds must conduct explicitly religious activities in a time and place that are different from when and where they do government-financed work.
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[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/08/19/art.obama.0819d.gi.jpg caption =" Only about one-third of Americans can correctly identify President Obama’s religion, according to a recent poll."](CNN) - Long before last week's revelation that a large and growing chunk of Americans believe that the President is Muslim – and that only about one in three Americans correctly identify him as Christian – Barack Obama was battling misperceptions about his religion.

In early 2008, right as Obama was in desperate need of a win in the South Carolina primaries – he'd beaten Hillary Clinton in Iowa's first-in-the-nation caucuses but lost to her in subsequent contests in New Hampshire and Iowa – false rumors swirled that he was Muslim.

Obama's father was raised in a Muslim household, though the presidential candidate had repeatedly called him an agnostic, and Obama had spent time attending an Indonesian school where most students were Muslim. An e-mail smear campaign alleged that the White House hopeful was disguising his true faith.

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