Racial Nondiscrimination in Private Schools (REG-119986-25)

This document contains proposed regulations providing that a school cannot qualify for tax-exempt status as a charitable organization under § 501(c)(3) if it maintains racially discriminatory practices or policies. The IRS has taken this position in sub-regulatory guidance for several decades. The proposed rules would further state that racial discrimination is incompatible with charitable tax-exempt status regardless of the purpose behind that discrimination. The proposed regulations would affect tax-exempt private schools, including primary and secondary schools, colleges, universities, and professional or trade schools.