Proposed Federal Tax-Exempt Regulations: What Independent Schools Need to Know-Slides

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The Council for Advancement and Support of Education (CASE) presentation explains proposed federal tax-exempt regulations that Treasury and the IRS issued on September 4, 2026. The proposal would establish standards addressing discrimination based on race, color, national origin, or ethnic origin.<br /><br />The proposed standard could reach beyond admissions to scholarships and financial aid, athletics, educational policies, affinity programs, and other school activities. CASE warns that uncertainty about a school’s tax-exempt status could affect the deductibility of donations, donor confidence, and philanthropic support—not just institutional policy.<br /><br />CASE’s concerns include the proposal’s broad reach, potential consequences for charitable giving, the need for clear standards, and due process. It also highlights possible effects on donor intent and the proportionality of penalties.<br /><br />Schools should understand the proposal, inventory potentially affected policies and programs, consult legal counsel, brief leadership and trustees, and consider submitting comments. The public comment deadline is November 3, 2026; a hearing is scheduled for December 2. Comments can explain how philanthropy supports schools, how donors rely on charitable status, and the operational and financial effects of uncertainty.<br /><br />The central message: the proposal is not final, its implications may extend across school operations and advancement, and schools should assess its potential impact and consider making their voices heard.

Keywords

CASE

federal tax-exempt regulations

Treasury

IRS

nonprofit schools

scholarships

financial aid

charitable giving

tax-exempt status

public comment deadline