Bob Jones University regains nonprofit status 17 years after it dropped policy that is discriminatory

Bob Jones University regains nonprofit status 17 years after it dropped policy that is discriminatory

BJU entrance (Picture: File)

In a move that’s been a lot more than 2 yrs when you look at the creating, Bob Jones University announced Wednesday it could regain its federal status that is tax-exempt March 1, a lot more than three years following the IRS stripped its nonprofit status following a landmark U.S. Supreme Court ruling.

The problem when you look at the court situation ended up being the university’s refusal to enable interracial relationship or wedding among pupils, staff or faculty associated with the college, a guideline it offers since abandoned.

The conservative Christian college dropped its interracial dating ban in a nationwide televised interview with previous president Bob Jones III on CNN’s Larry King reside in 2000. In 2008, last President Stephen Jones, great-grandson of university and evangelist creator Bob Jones, apologized for BJU’s past racial discrimination.

Nevertheless the college hadn’t desired to reinstate its tax-exempt status until 2014 after Steve Pettit took over given that school’s 5th Christian Cafe sign in president in its 90-year history.

“Organizing as being an entity that is tax-exempt something BJU has needed seriously to do for a long time,” Pettit stated.

Inside the very first ending up in the university’s Cabinet, Pettit said he thought it had been right for BJU to get its tax-exempt status since the college does not think the jobs it once held about competition.

Pettit called the university’s racist policies an issue that is social had not been biblical.

“The Bible is quite clear,” Pettit said while he announced the alteration to your college Wednesday evening. “We are constructed of one bloodstream.”

Bob Jones University destroyed its taxation exemption after having a 13-year fight with the IRS over perhaps the university’s policies against interracial relationship precluded it as being a non-taxable spiritual academic organization. The college didn’t acknowledge any black colored pupils until 1971, 17 years after Brown vs. Board of Education. It then wouldn’t acknowledge any students have been in a marriage that is mixed-race produced guidelines to prohibit pupils from interracial relationship.

The way it is rose towards the Supreme Court, which ruled in 1983 that the IRS could revoke the university’s tax-exempt status considering that the government’s curiosity about eradicating racial discrimination from training overrode the university’s First Amendment liberties to spiritual speech that is free.

The way it is happens to be cited times that are many the years. Of late, it arose in a trade prior to the Supreme Court into the Obergefell vs. Hodges choice, which legalized marriage that is gay. The IRS commissioner said the agency would not target the tax-exempt status of religious institutions that oppose gay marriage after that decision.

It’s taken two-and-a-half years for BJU to perform the reorganization as it utilized a plan that is complicated separate its organization into two entities utilizing the college dropping beneath the umbrella of their primary school’s current non-profit status to produce a unique, relating to college statements and company documents filed using the sc Secretary of State while the IRS.

That nonprofit that is existing called Bob Jones Elementary School, Inc. until final might, with regards to ended up being renamed BJU, Inc.

The restructuring arrived after “consultation with a lawyer and accountants with numerous many years of expertise in assisting taxation exempt organizations—as well as input from users of the BJU community and our congressional delegation,” Pettit stated.

The alteration didn’t need IRS approval because its primary college had been a nonprofit, although the college had formal communication and conversations utilizing the IRS, stated Randy web Page, BJU spokesman.

The college has become detailed as being a 501()( that is c) nonprofit regarding the IRS internet site, stated Michael Dobzinski, IRS spokesman.

What it indicates

Up to now, if users of town or alumni desired to contribute to the college, their presents had been just taxation deductible should they provided to specific nonprofit hands for the college, such as for instance its scholarship investment, art museum or athletic foundation.

Donors couldn’t offer gifts that are tax-deductible the college it self to support money promotions and for college initiatives.

A lot of the big presents to your college recently, like a $500,000 present through the Sargant Foundation in December and a $1 million anonymous present announced last November, went toward its BJU Scholarship Fund, a nonprofit entity associated with the college.

Now donors’ gift ideas will undoubtedly be tax-deductible, web web Page stated.

“It helps whenever you’re attempting to raise money for a business to possess a status that is tax-exempt” web Page stated. “That clearly helps your development people, your development folks and people in the community – organizations, individuals, alumni – to really make it simpler to subscribe to a nonprofit.”

The alteration would affect students’ n’t grants or scholarships and wouldn’t influence workers, he stated.

The change amounts the playing field involving the college as well as other cousin organizations whenever trying to get funds, he stated.

Moreover it moves BJU from a college that is for-profit a nonprofit category because of the U.S. Department of Education, “which is generally recognized more positively by the public,” web web Page stated.

That modification could show essential because the U.S. Department of Education has targeted colleges that are for-profit additional oversight in the last few years and fined a few for-profit systems of universities beneath the national government, which led to universities like Corinthian university and ITT Technical Institute shutting down.

And although the college runs debt-free and does not intend to accept debt, it might possibly save your self through reduced rates of interest if it made a decision to undertake financial obligation, web Page said.

Exactly How BJU is going to be organized

On March 1, Bob Jones University, Inc. will likely to be renamed Bob Jones Education Group, Inc. and can remain the university’s entity that is taxable will donate approximately half its assets to your non-taxable BJU, Inc.

The university’s assets will effortlessly be split amongst the two businesses.

BJU, Inc. should include the university & most of their facilities, the art museum, primary college and son or daughter development center. BJU Press authors will also come beneath the umbrella of BJU, Inc.

The arm that is for-profit of university – Bob Jones Education Group, Inc. – should include the BJU Press, University Cleaners therefore the Bob Jones Academy center and high schools.

The university will be governed by still its 25-member Board of Trustees. The board will appoint an innovative new eight-member board to govern Bob Jones Education Group.

The transition procedure started in late 2014 with a scholarly research of just how to attain income tax exemption. Final might 5, the Board of Trustees approved the last policy for pursuing income tax exemption as well as the administration happens to be trying to implement it since that time.

In addition, the college happens to be searching for local certification through the Southern Association of Colleges and Schools Commission on Colleges. The college, that will be listed as an applicant for certification, notified the payment of the possible modifications, which wouldn’t influence its candidacy, web web Page stated.

The college introduced SACSCOC using its proposition policy for taxation exemption and there is no noticeable improvement in governance, stated Pamela Cravey, SACSCOC spokeswoman.

“The action had been an IRS matter and failed to represent a substantive modification,” Cravey stated,

SACSCOC has considered the college as a not-for-profit, she stated.

Leave a Reply

Your email address will not be published. Required fields are marked *