– will include the BJU Press, University Cleaners and the Bob Jones Academy middle and high schools.The university will still be governed by its 25-member Board of Trustees.The university is now listed as a 501(c)(3) nonprofit on the IRS website, said Michael Dobzinski, IRS spokesman.What it means Until now, if members of the community or alumni wanted to donate to the university, their gifts were only tax deductible if they gave to certain nonprofit arms of the university, such as its scholarship fund, art museum or athletic foundation.The university, which is listed as a candidate for accreditation, notified the commission of its potential changes, which wouldn’t affect its candidacy, Page said.The university presented SACSCOC with its proposal plan for tax exemption and there is no change in governance, said Pamela Cravey, SACSCOC spokeswoman."The action was an IRS matter and did not constitute a substantive change," Cravey said, SACSCOC has considered the university as a not-for-profit, she said.
It also moves BJU from a for-profit college to a nonprofit classification with the U. Department of Education, “which is frequently perceived more favorably by the public,” Page said. And though the university operates debt-free and doesn’t plan to take on debt, it could potentially save through lower interest rates if it chose to take on debt, Page said.
“We are made of one blood.”Bob Jones University lost its tax exemption after a 13-year battle with the IRS over whether the university’s policies against interracial dating precluded it as a non-taxable religious educational institution.
The university didn’t admit any black students until 1971, 17 years after Brown vs. It then wouldn’t admit any students who were in a mixed-race marriage and created rules to prohibit students from interracial dating.
Last May 5, the Board of Trustees approved the final plan for pursuing tax exemption and the administration has been working to implement it since then.
At the same time, the university has been seeking regional accreditation through the Southern Association of Colleges and Schools Commission on Colleges.