Elon Musk Drops Stunning Bombshell?

Behind closed doors, Musk revealed a game-changing breakthrough technology that could shake the tech world & crush major companies. Why is no one talking about it? Luckily, we had a man on the inside - watch now to see the details & how to profit!

Can the IRS revoke Harvard's tax-exempt status?

GABRIELA AOUN ANGUEIRA and THALIA BEATY
April 17, 2025

For more than a century, the majority of colleges and universities have not paid most taxes. The Revenue Act of 1909 excused nonprofits operating "exclusively for religious, charitable, or educational purposes" in order to continue acting in the public interest.

President Donald Trump is looking to challenge that designation, complaining that colleges and universities are "indoctrinating" their students with "radical left" ideas, rather than educating them. And he has decided to start with the 488-year old Harvard University, one of the world's most prestigious institutions of learning and the first college founded in the American colonies.

On Tuesday, he targeted Harvard University in a post on his social media site, questioning whether it should remain tax-exempt "if it keeps pushing political, ideological, and terrorist inspired/supporting "Sickness?" Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

Tax-exempt status, which is decided by the Internal Revenue Service, means that these institutions do not pay certain kinds of taxes and that their donors receive a tax deduction when they make gifts. The rules they have to follow to maintain that status are set out in the tax code. We spoke with attorneys who specialize in nonprofit law and freedom of speech to try to answer questions about this challenge.

Does a university's curriculum affect its charitable status?

In general, no. Colleges and universities have broad leeway to design the education they provide.

Genevieve Lakier, a First Amendment scholar at the University of Chicago Law School, said the U.S. Supreme Court has laid out four essential freedoms for colleges and universities -- what to teach, how to teach it, who their students are and who their professors are.

"That's the irreducible core of academic freedom and it is constitutionally protected in this country," she said, adding the government cannot threaten funding cuts or revoking a school's tax status as punishment for its views or what the school teaches.

The First Amendment also protects the rights of other nonprofits to pursue their charitable missions under freedom of assembly, Lakier said, even if those missions are odious or the government does not like them.

Can the president ask the IRS to revoke a nonprofit's tax-exempt status?

No, he is not supposed to, according to two nonprofit tax attorneys who wrote about a previous call from Trump to revoke the nonprofit status of colleges and universities.

In 1998, Congress passed a law that forbade federal officials from telling the IRS to investigate any taxpayer in an effort to increase trust in tax enforcement.

The attorneys, Ellen Aprill and Samuel Brunson, also pointed to legislation that forbade the IRS "from targeting individuals and organizations for ideological reasons," after a controversy over how it treated Tea Party groups in 2013.

How does a nonprofit get and keep its tax-exempt status?

The IRS recognizes multiple reasons for a nonprofit to to be exempt from paying many kinds of taxes, including pursuing charitable, religious or educational missions among many other examples. The statute specifically names sports competitions, preventing cruelty to children or animals and defending human or civil rights as exempt purposes.

Nonprofits can lose their tax-exempt status for things like improperly paying its directors, endorsing a political candidate or operating a business unrelated to its charitable mission.

In short, tax attorneys say nonprofits must operate "exclusively for charitable purposes," which is a different standard than what the president referred to as, "acting in the public interest."

Phil Hackney, a law professor at the University of Pittsburgh, said, "Long history and precedent suggest that Harvard and institutions of higher education are operating for educational purposes, which are considered charitable," under the tax code.

He said it would be exceedingly difficult to make a case that a college or university was not operating for charitable purposes under current law. However, Edward McCaffery, who teaches tax policy at the University of Southern California Gould School of Law, warned there is precedent for the IRS revoking the tax-exempt status of colleges that the government could lean on.

"I think to dismiss it out of hand as over-the-top bluster and that the administration has no power to unilaterally pursue it, I think that's naive," McCaffery said. "This could happen."

Has the IRS ever stripped a college of its tax-exempt status before?

Yes. In 1983, the Supreme Court upheld a lower court decision that the IRS could deny tax-exempt status to Bob Jones University, a private Christian university that banned interracial dating and marriage on campus, and Goldsboro Christian Schools, which employed racially discriminatory admissions policies.

The court found the IRS had some discretion to determine whether an organization seeking tax-exempt status met standards of "charity," meaning that it "must serve a public purpose and not be contrary to established public policy."

Nonetheless, McCaffery said, "The ability of the IRS just to come in and deny tax exemption, it better be a very clear, long-standing, deeply held public policy, and not political preferences for certain kinds of positions, attitudes and voting patterns."

How can the IRS revoke a nonprofit's tax-exempt status?

Usually, the IRS would open an audit, where it gathers evidence that a nonprofit is not operating exclusively for charitable purposes.

"The IRS would have to send to Harvard a proposed revocation of its status," Hackney said. "At that point, Harvard would have many different means to talk with the IRS about why they believed they were within the law," including suing.

However, Hackney said the U.S. Department of Treasury could implement new regulations, for example, stating that operating a diversity, equity and inclusion program is not consistent with charitable purposes. Such a change would usually take years to make and would run counter to decades of precedent, Hackney said.

"I am skeptical this effort will be successful," he said. "If it were, this would be the most dramatic change of charitable law in my lifetime and I would say in the history of our charitable law."

___

Associated Press coverage of philanthropy and nonprofits receives support through the AP's collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP's philanthropy coverage, visit https://apnews.com/hub/philanthropy.

Continue Reading...

Popular

Visa cancellations sow panic for international students, with hundreds fearing deportation

WASHINGTON (AP) — At first, the bar association for immigration attorneys began receiving inquiries from a couple students a day. These were foreigners studying in the U.S., and they'd their legal status had been terminated with little notice. To their knowledge, none of the students had committed a deportable offense.

President Trump says CBS and '60 Minutes' should 'pay a big price' for going after him

President Donald Trump bitterly attacked “60 Minutes” shortly after the CBS newsmagazine broadcast stories on Ukraine and Greenland on Sunday, saying the network was out of control and should “pay a big price” for going after him.

Nvidia Is About to Shock the World: April 23rd - Ad

Jeff Brown, the tech legend who picked shares of Nvidia in 2016 before they jumped by more than 22,000%, is warning everyone to... Mark this date on your calendar: April 23rd! That's when Nvidia could help send shares of this Elon Musk supplier skyrocketing higher.

Canadian couple likely the only business owners on Australia's Norfolk Island to face US tariffs

MELBOURNE, Australia (AP) — Jesse Schiller and Rachel Evans are likely the only business owners on to be directly affected by the Trump administration's , as the South Pacific outpost they call home exports nothing to the United States.

Tiny Caribbean territory offers cash, plane tickets and a hotel stay to fight brain drain

SAN JUAN, Puerto Rico (AP) — The Dutch Caribbean territory of St. Maarten is offering cash, plane tickets and an extended hotel stay to attract professionals and students back home.

Elon Musk Drops Stunning Bombshell? - Ad

Behind closed doors, Musk revealed a game-changing breakthrough technology that could shake the tech world & crush major companies. Why is no one talking about it? Luckily, we had a man on the inside - watch now to see the details & how to profit!

Trump nominee withdraws after her criticism of the Jan. 6 Capitol attack surfaces

BILLINGS, Mont. (AP) — President Donald Trump's nominee to oversee an agency that manages has withdrawn her nomination following revelations that she criticized the Republican president in 2021 for inciting the Jan. 6 attack on the U.S. Capitol.

China May Hit US Where It Hurts Amid Trump's Tariff War — Services Trade In Crosshairs, With Walt Disney, IMAX And Warner Bros. Discovery In Focus

As Washington doubles down on its trade war with China, and tariffs now going as high as 104%, some leading experts believe that the Middle Kingdom might have an ace up its sleeve, that could hit the United States where it hurts most—Services.

New Study: 50 Stocks Will Crash While 7 MAGA Stocks Will Soar - Ad

If you own any of these stocks -- directly or through mutual funds -- I want to encourage you to sell them before April 30th. I've compiled all 50 companies in my "MAGA Blacklist" report. Your retirement could depend on seeing this list.

Peter Schiff Says Nike 'Won't Build Factories' In US, They Will Sell To Countries Like China: A Much Better Strategy Amid Trump Tariffs

Economist Peter Schiff warned on Thursday that Nike Inc. won't shift production to the United States despite newly imposed tariffs, predicting higher prices and reduced domestic sales for the footwear giant.

Trump meets with the House GOP as his 'big' bill of tax breaks and spending cuts teeters

WASHINGTON (AP) — found himself in a familiar jam on Tuesday: Conservative Republican holdouts are stalling action on "big” bill of tax breaks and spending reductions, refusing to accept approved over the weekend because it doesn't cut enough.

Putting Your Name on This List Could Hand You $1,270 on Friday - Ad

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

Crypto Attorney Sues US Government To Unmask Satoshi Nakamoto, Creator Of Bitcoin

In another interesting twist in the Satoshi Nakamoto saga, cryptocurrency lawyer James Murphy sued the U.S. government in an attempt to determine the identity of the pseudonymous Bitcoin (CRYPTO: BTC) creator.

New ETFs Offer Bitcoin Exposure With Built-In Safety Nets

New target outcome ETFs from First Trust provide a controlled way to invest in bitcoin with a cap and floor, offering potential upside and downside protection.

World Economic Forum: "Arguably the Most Exciting Human Discovery Since Fire" - Ad

Sam Altman, Bill Gates, and Mark Zuckerberg are all investing vast sums of money into a radical technology. According to Bloomberg, this could become 10 times bigger than AI, quantum computing, electric vehicles, cryptocurrencies, and robotics combined. And one stock is at the center of it all.

Trump reaches deals with 5 law firms, allowing them to avoid prospect of punishing executive orders

WASHINGTON (AP) — announced deals Friday with five law firms that will allow them to avoid the prospect of a punishing executive order and require them to together provide hundreds of millions of dollars' worth of free legal services for causes his administration supports.

DOGE trumpets unemployment fraud that government already found

NEW YORK (AP) — The latest government waste touted by billionaire Elon Musk's cost-cutting Department of Government Efficiency is hundreds of millions of dollars in fraudulent unemployment claims it purportedly uncovered.

No.1 Opportunity for 2025 [Take Action Now!] - Ad

Starlink's potential IPO Could Be the Biggest in History--Silicon Valley insider James Altucher has uncovered a way to profit BEFORE the IPO--with as little as $50. Musk's $180B giant is set to launch--will you miss out? Claim your spot before it's too late.

Prosecutors directed to seek death penalty against UnitedHealthcare killing suspect Luigi Mangione

NEW YORK (AP) — U.S. Attorney General Pam Bondi said Tuesday she has directed federal prosecutors to seek the death penalty against Luigi Mangione, the man accused of gunning down Brian Thompson outside a New York City hotel on Dec. 4.

Trump to Unlock 15-Figure Fortune for America (May 3rd)? - Ad

This map looks ordinary--but according to insider Jim Rickards, it reveals a hidden government asset so massive . Trump may soon unlock it--learn how to position yourself before it's too late!

Tom Lee Says Markets Are 'Deeply Oversold,' Expects Bitcoin To Lead Rebound As Investors Fear Trump's Tariff Impact

Fundstrat‘s Tom Lee believes markets are poised for a rebound despite widespread investor anxiety ahead of President Donald Trump‘s anticipated tariff announ

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Company plans to restart Keystone Pipeline after oil spill in rural North Dakota

BISMARCK, N.D. (AP) — The operator of the said it planned to restart the system Monday after a last week shut down the line.

The Trump administration withdrew 11 pieces of ADA guidance. How will it affect compliance?

ATLANTA (AP) — President Donald Trump’s administration withdrew 11 pieces of guidance last month related to the Americans with Disabilities Act that helped stores, hotels and other businesses understand their obligation to the law.

Out of 23,281 Stocks... This Is the Only One - Ad

Out of 23,281 stocks, one stands out - wildly profitable, deeply undervalued. It generates $1B+ more cash than AMD, yet trades 20x cheaper. Backed by Trump and partnered with a top AI firm, this could be the stock to own now.

Trump Administration Opens Probe Into Foreign Drug Imports, Eyes Tariffs Under National Security Law

The U.S. Commerce Department has launched a Section 232 investigation into the national security impact of pharmaceutical and drug ingredient imports, citing supply chain risks.

Scholarships for child care are drying up. Now families are paying the price

PHOENIX (AP) — For parents who need to work but can't afford the steep , federally funded scholarships can be a lifeline. Delivered through state child care assistance programs, the scholarships can mean the difference between a parent working full time — or not at all.

Brace Yourself for Jeff Bezos' "Amazon Helios" - Ad

Amazon delivers 20 million packages a day... powers some of the most popular websites... delivers medication to half of the U.S. population... and even produces award-winning films and TV shows. But a Wall Street legend -- twice featured on 60 Minutes -- predicts that "Amazon Helios" will be bigger than all of those... COMBINED.

Amazon Stock's Recent Pullback Offers 'Unique Opportunity': Analyst

Amazon shares are down 9% over the last month, but WestPark Capital analyst Curtis Shauger sees a buying opportunity in the stock's recent pullback. 

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

Critics Hit Trump for Golf Trip Amid Tariff Chaos, Troop Deaths: 'He Fiddles While Rome Burns'

President Trump came under fire from Democrats on Friday after he spent the day at his Florida golf club amid economic chaos and a solemn military event.

Corporate plane skids off runway into water in Oregon, injuring 5 people

NORTH BEND, Ore. (AP) — A small corporate plane skidded off a runway and into the water in southern Oregon Monday, injuring five people, officials said.

The Most Important "AI Stock" You've Never Heard Of - Ad

The AI revolution is moving faster than anyone expected. But what no one is talking about is the one company AI simply can't exist without. It may be the single most important AI investment, yet most people don't even know its name. For now. The moment Wall Street catches on, this $20 stock could explode.

Stocks Fall, S&P 500 Eyes Worst Month In Almost Two Years, Oil Rallies: What's Driving Markets Monday?

Risk sentiment remains under pressure at the start of the week on Wall Street, with tech-heavy indexes sliding while commodities advance, as traders fear a new wave of price pressures following the upcoming tariffs announcement.

Biggest Dividend Payout in U.S. History: $1 Trillion up for Grabs! - Ad

Trump just launched a $1 trillion National Investment Fund to replace income taxes and send direct payouts to Americans. You could claim up to $21,307--before the first public checks go out. This is historic. Act now to be first in line.

Man Arrested For Arson At Pennsylvania Governor's Residence, Josh Shapiro Says, 'This Kind Of Violence Has Become Far Too Common'

A man was arrested for a targeted arson attack on Pennsylvania Governor Josh Shapiro's residence while he and his family were inside, prompting attempted murder and terrorism charges.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright activatrade.ca
Privacy Policy | Terms of Service