Higher Education Groups Condemn Proposed IRS Rule Threatening Private College Tax Exemptions

Higher education advocacy groups and institutions are strongly criticizing a proposed rule from the Treasury Department and Internal Revenue Service (IRS) that could revoke the tax-exempt status of private, nonprofit colleges and universities found to have discriminated based on race or ethnicity. Organizations fear potential political abuse of the regulation, which states that 'all forms' of racial or ethnic discrimination could trigger the loss of tax-exempt status, regardless of intent or legality.