Bob Jones University To Regain Tax Exempt Status

The State reported last week that Bob Jones University, will regain its tax exempt status on March 1, nearly 34 years after the U.S. Supreme Court decision that upheld stripping it of the exempt status.  The revocation stemmed from the University's policy, which at the time it claimed was Biblically-based, to deny admission to applicants engaged in an interracial marriage or known to advocate interracial marriage or dating.  The conservative Christian university dropped its interracial dating policy in 2000, but did not take steps to begin to regain full tax exempt status until 2014. It had previously created certain non-profit arms, such as its scholarship fund.  But now a reorganization will place most of the university's facilities under the umbrella of its existing BJU, Inc. (formerly Bob Jones elementary School, Inc.).  Some assets however will remain in a for-profit entity.  This reorganization did not require formal IRS approval, but the University has had formal correspondence and conversations with IRS about the reorganization.  One of the benefits of the reorganization will be that the University will move from a for-profit to a non-profit college as the Department of Education is giving added oversight to for-profit institutions. [Thanks to Scott Mange for the lead.]