Statement on Proposed IRS Regulations Affecting Tax-Exempt Status of Private, Nonprofit Colleges and Universities
WASHINGTON, DC (September 3, 2026) —The U.S. Department of the Treasury and Internal Revenue Service have issued proposed regulations that would establish new requirements for private educational institutions to maintain federal tax-exempt status under Section 501(c)(3). The proposed regulations address nondiscrimination requirements related to race, color, and national or ethnic origin and would apply to private elementary and secondary schools, colleges, universities, professional schools, and trade schools.
Tim Powers, NAICU’s Vice President for Government Relations and Policy Development, issued the following statement:
“NAICU is reviewing the proposed IRS regulations and their impact on private, nonprofit colleges and universities. Our institutions are committed to complying with applicable civil rights laws and maintaining safe and supportive campuses free from discrimination.
“However, the proposed rule may create new compliance burdens and legal uncertainties for institutions of higher education that are already operating in line with existing nondiscrimination rules. Additionally, this is another attempt to levy punitive measures at only one sector of higher education instead of a more balanced and fair approach that applies to all colleges and universities.”
About NAICU
The National Association of Independent Colleges and Universities (NAICU) serves as the unified voice for the 1,700 private, nonprofit colleges and universities in our nation. Founded in 1976, NAICU is the only national membership organization solely focused on representing private, nonprofit higher education on public policy issues in Washington, DC. NAICU's membership reflects the spectrum of private, nonprofit higher education in the U.S. NAICU's member institutions include major research universities, faith-based colleges, Historically Black Colleges and Universities, Hispanic-Serving Institutions and other Minority-Serving Institutions, art and design colleges, conservatories of music, traditional liberal arts and science institutions, women's colleges, work colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions.
For more information, please contact:
Dorian Wanzer