The case rose to the Supreme Court, which ruled in 1983 that the IRS could revoke the university’s tax-exempt status because the government’s interest in eradicating racial discrimination from education overrode the university’s First Amendment rights to religious free speech.
The case has been cited many times through the years.
That existing nonprofit was called Bob Jones Elementary School, Inc. The restructuring came after “consultation with legal counsel and accountants with many years of experience in assisting tax exempt organizations—as well as input from members of the BJU community and our congressional delegation,” Pettit said.
In 2008, past President Stephen Jones, great-grandson of evangelist and university founder Bob Jones, apologized for BJU’s past racial discrimination.
But the university hadn’t sought to reinstate its tax-exempt status until 2014 after Steve Pettit took over as the school’s fifth president in its 90-year history.“Organizing as a tax-exempt entity is something BJU has needed to do for quite some time,” Pettit said.
The change levels the playing field between the university and other sister institutions when applying for grants, he said. Department of Education has targeted for-profit colleges with added oversight in recent years and fined several for-profit networks of colleges under the Obama administration, which resulted in colleges like Corinthian College and ITT Technical Institute closing down.
It also moves BJU from a for-profit college to a nonprofit classification with the U. Department of Education, “which is frequently perceived more favorably by the public,” Page said. And though the university operates debt-free and doesn’t plan to take on debt, it could potentially save through lower interest rates if it chose to take on debt, Page said.
How BJU will be structured On March 1, Bob Jones University, Inc. and will remain the university’s taxable entity and will donate about half its assets to the non-taxable BJU, Inc.
The university’s assets will effectively be split between the two organizations. will include the university and most of its facilities, the art museum, elementary school and child development center.
At first glance, these statistics may seem rather unbelievable since they tend to show very high levels of intermarriages, especially among Koreans and Filipinos. S.-raised only represent less than 20% of all marriages involving Asian Americans.
Many readers will undoubtedly argue that these numbers do not correspond to their own personal experiences and observations. First, keep in mind that these numbers are only for marriages in which both spouses are U. Second, other related research shows that intermarriages are much more common outside of the major urban areas where most young Asian Americans lives.
In his first meeting with the university’s Cabinet, Pettit said he believed it was appropriate for BJU to seek its tax-exempt status because the university doesn’t believe the positions it once held about race.
Pettit called the university’s racist policies a social issue that was not biblical.“The Bible is very clear,” Pettit said as he announced the change to the university Wednesday night.
Now donors’ gifts will be tax-deductible, Page said.“It helps when you’re trying to raise money for an organization to have a tax-exempt status,” Page said.