Question

The Supreme Court once denied tax-exempt status to a private university that discriminated on the basis of race. What is likely to have influenced or guided the interpretation of the statute relevant to this case?

Answer 1

Answer and explanation:

According to Section 501(c)(3) of the U.S. Internal Revenue Code (IRC), private universities that have discriminatory admissions are not eligible for tax exemptions. In the U.S. this was applied in the Bob Jones University v. United States case (1983), where the Supreme Court stated that no tax exemption could be granted to the evangelic private university.