Sadly, that's a tough decision for many people – Christians included.
Sadly, many people see the solution only within this dichotomy.
The fact is, excluding those who wilfully live a sinful life lacks Jesus' kind of love. On the other hand, tolerating a sinful life lacks the kind of courage that Jesus displayed.
Jesus rejected both tolerating and excluding.
Jesus came to those who rejected Him in order to bring them safely home. He said in effect, “I'm going away to prepare a place for you and in the meantime, I'm going to purify you from your sin so that you will become the kind of people who are prepared live in that place.”
To prove that He was serious about this, Jesus came from His throne in heaven, to live among us, with us. He became one of us, identifying with us in our lost and lonely state. And He walked with us all the way to the cross, taking upon Himself a punishment that we could not bear so that we might one day spend eternity in His presence.
Can't we do that same for those who today reject His offer of love and forgiveness? Can't we go to them? Can't we show love to them? Mercy? Kindness? Compassion?
We can't do this while excluding them from our presence. Nor can we do this by excusing or merely tolerating their sin.
All that God has asked us to do is to love others. Love them. Be gentle and understanding and merciful and to point them toward the greatest love and forgiveness this universe will ever know.