Nonprofit organizations exist to serve the public through education, research, community development, healthcare, environmental stewardship, civil rights advocacy, religious service, and countless other charitable endeavors. Their ability to fulfill these missions depends on consistent application of the law and protection from political retaliation. When government actors seek to use regulatory authority to punish organizations because of their mission, programs, or values, the independence of the entire nonprofit sector is placed at risk.
The Treasury Department’s newly proposed IRS rule, which would permit the revocation of 501(c)(3) tax-exempt status from private schools seeking to address racial disparities in student access and outcomes, raises profound concerns for higher education, the nonprofit sector, and our democracy.
While directed at private K-12 and postsecondary institutions, this proposal carries implications far beyond the education sector. It establishes a significant precedent whereby tax-exempt status may become contingent upon shifting political judgments regarding lawful mission-related activities.
Recent actions targeting nonprofit organizations across multiple issue areas, from civil rights to the environment, have intensified concerns that charitable status and nonprofit oversight may increasingly be used as tools of political coercion. Regardless of political affiliation or policy preference, all Americans have a stake in preserving a nonprofit sector that is free to operate within the law without fear that a change in political leadership will jeopardize its existence.
We believe that organizations should not be forced to abandon lawful efforts to expand educational opportunity, serve vulnerable communities, advance knowledge, or address public challenges simply because political winds have shifted. The nonprofit sector's strength lies in its diversity of missions, perspectives, and approaches, all operating under a common legal framework.
Accordingly, we oppose the Treasury Department's proposed rule and any effort to use tax-exempt status as a mechanism for political enforcement. We urge policymakers to preserve the independence of nonprofit institutions, respect longstanding principles of charitable governance, and protect the freedom of organizations to pursue their lawful missions in service of the public good.
We stand in solidarity with higher education institutions and nonprofit organizations across the nation. We affirm our commitment to democracy, the freedom to think and learn, civil society, and the independence of the nonprofit sector.
Thank you for signing! Stay tuned for a forthcoming public comment toolkit and template in your inbox from the Alliance for Higher Education. Public comment on this rule is due by Tuesday, November 3, 2026.
13 Comments
This new rule would decrease school accessibility--especially to those who are least advantaged. It has no place in any just society.
I am against the Treasury Department’s newly proposed IRS rule, which would permit the revocation of 501(c)(3) tax-exempt status from private schools seeking to address racial disparities in student access and outcomes, raises profound concerns for higher education, the nonprofit sector, and our democracy.
The proposed IRS rule is devious & undemocratic. I have grandchildren of color who will be impacted by schools & organizations who would lose their funding & freedom to provide education and services to minority Americans.
The rule exceeds statutory authority and contradicts established public policy. It does so by framing race-conscious efforts to expand opportunity as discrimination — a move that would, in effect, keep working-class Americans and people of color from accessing higher education and a better life. By labeling fair opportunity as discriminatory, the administration is, in effect, gaslighting the American people into believing that up is down and black is white — reversing the meaning of equality.
The proposed IRS rule is an attempt to intimidate institutions of higher education from engaging in lawful efforts to admit and support all students regardless of race, gender, ethnicity, and other protected characteristics under law by threatening their loss of tax exempt status. Further, the proposed rule would allow the federal government to interfere with lawful decisions by private institutions. Finally, the IRS is obligated to define what is lawful and unlawful "DEI".
They do a lot of important work
Non-profit organizations serve the public interest. The regulations governing those institutions should not be politicized.
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Nonprofit organizations exist to serve the public through education, research, community development, healthcare, environmental stewardship, civil rights advocacy, religious service, and countless other charitable endeavors. Their ability to fulfill these missions depends on consistent application of the law and protection from political retaliation. When government actors seek to use regulatory authority to punish organizations because of their mission, programs, or values, the independence of the entire nonprofit sector is placed at risk.
The Treasury Department’s newly proposed IRS rule, which would permit the revocation of 501(c)(3) tax-exempt status from private schools seeking to address racial disparities in student access and outcomes, raises profound concerns for higher education, the nonprofit sector, and our democracy.
While directed at private K-12 and postsecondary institutions, this proposal carries implications far beyond the education sector. It establishes a significant precedent whereby tax-exempt status may become contingent upon shifting political judgments regarding lawful mission-related activities.
Recent actions targeting nonprofit organizations across multiple issue areas, from civil rights to the environment, have intensified concerns that charitable status and nonprofit oversight may increasingly be used as tools of political coercion. Regardless of political affiliation or policy preference, all Americans have a stake in preserving a nonprofit sector that is free to operate within the law without fear that a change in political leadership will jeopardize its existence.
We believe that organizations should not be forced to abandon lawful efforts to expand educational opportunity, serve vulnerable communities, advance knowledge, or address public challenges simply because political winds have shifted. The nonprofit sector's strength lies in its diversity of missions, perspectives, and approaches, all operating under a common legal framework.
Accordingly, we oppose the Treasury Department's proposed rule and any effort to use tax-exempt status as a mechanism for political enforcement. We urge policymakers to preserve the independence of nonprofit institutions, respect longstanding principles of charitable governance, and protect the freedom of organizations to pursue their lawful missions in service of the public good.
We stand in solidarity with higher education institutions and nonprofit organizations across the nation. We affirm our commitment to democracy, the freedom to think and learn, civil society, and the independence of the nonprofit sector.
Thank you for signing! Stay tuned for a forthcoming public comment toolkit and template in your inbox from the Alliance for Higher Education. Public comment on this rule is due by Tuesday, November 3, 2026.
13 Comments
I oppose this proposed IRS rule because it could weaponize the tax code against nonprofits addressing inequity. Justice-impacted students could lose scholarships and essential support if institutions eliminate programs out of fear. Nonprofits deserve clear standards, evidence, and due process—not political coercion. This is about protecting equitable opportunity and institutional independence, not defending discrimination.
This new rule would decrease school accessibility--especially to those who are least advantaged. It has no place in any just society.
I am against the Treasury Department’s newly proposed IRS rule, which would permit the revocation of 501(c)(3) tax-exempt status from private schools seeking to address racial disparities in student access and outcomes, raises profound concerns for higher education, the nonprofit sector, and our democracy.
The proposed IRS rule is devious & undemocratic. I have grandchildren of color who will be impacted by schools & organizations who would lose their funding & freedom to provide education and services to minority Americans.
The rule exceeds statutory authority and contradicts established public policy. It does so by framing race-conscious efforts to expand opportunity as discrimination — a move that would, in effect, keep working-class Americans and people of color from accessing higher education and a better life. By labeling fair opportunity as discriminatory, the administration is, in effect, gaslighting the American people into believing that up is down and black is white — reversing the meaning of equality.
The proposed IRS rule is an attempt to intimidate institutions of higher education from engaging in lawful efforts to admit and support all students regardless of race, gender, ethnicity, and other protected characteristics under law by threatening their loss of tax exempt status. Further, the proposed rule would allow the federal government to interfere with lawful decisions by private institutions. Finally, the IRS is obligated to define what is lawful and unlawful "DEI".
They do a lot of important work
Non-profit organizations serve the public interest. The regulations governing those institutions should not be politicized.
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I oppose this proposed IRS rule because it could weaponize the tax code against nonprofits addressing inequity. Justice-impacted students could lose scholarships and essential support if institutions eliminate programs out of fear. Nonprofits deserve clear standards, evidence, and due process—not political coercion. This is about protecting equitable opportunity and institutional independence, not defending discrimination.