Private schools must display uniform nondiscrimination practices in order to receive benefits.
The Department of the Treasury and the Internal Revenue Service (IRS) have proposed removing tax-exempt status from private schools that engage in racial discrimination in their admission process. The agencies stated the effort upholds legal decisions of Brown vs. Board of Education, Bob Jones University vs. United States, and Students for Fair Admissions vs. Harvard.
The Treasury Department stated that any private school would be ineligible for federal tax-exempt 501(c)(3) status if it “adopts, maintains, or enforces a policy or practice that discriminates on the basis of race, color, or national or ethnic origin.” Both agencies state that any deviation from this would be “inconsistent with a uniform nondiscrimination standard” and would fail to uphold Supreme Court rulings.
“Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status,“ IRS Chief Executive Officer Frank Bisignano said. He added that the “proposed regulations put institutions on notice and schools that continue to engage in racial discrimination should expect to lose that status.”
As the Lord Leads, Pray with Us…
- For Chief Executive Officer and Commissioner Bisignano as he oversees the IRS and Social Security.
- For Treasury Secretary Bessent as his agency conducts the review of private school practices under Supreme Court precedents.
Sources: Department of the Treasury
