I have some friends in Seattle that are struggling with the way people who say they are Christians act, whether in a church building or outside of it. This was my response to one of their messages...
It can be hard. One of the problems is the tension between truth and grace. I learned about that tension a few years ago.
The Bible says, we are saved by grace, and that it's nothing we do (Ephesians 2:8-9), but it also says that the truth will set you free (John 8:32).
You see if you live and give nothing but grace then you lose true freedom to live and love the way Jesus intended (remember John 14:6, Jesus says He is the truth). This is when people allow others to do, say or live how ever they want without challenging them to grow, change and become greater than what they are now.
But if you live and give nothing but truth then you lose the very means of our salvation which is grace. This is when people become judgmental, legalistic and intolerant.
So the tension is knowing when to give grace to people and when to share the truth with people. I think Hebrews 10:23-25 are some good verses to look to for how to live in the tension of truth and grace.