Elon's $25 Trillion Confession

Elon Musk: "Tesla will become a $25 trillion company." That would make Tesla 8x bigger than Apple today. How is that possible? He admits it's all thanks to this one AI breakthrough that will take AI out of our computer screens and manifest a 250x boom here in the real world.

Can the IRS revoke Harvard's tax-exempt status?

GABRIELA AOUN ANGUEIRA and THALIA BEATY
April 17, 2025

For more than a century, the majority of colleges and universities have not paid most taxes. The Revenue Act of 1909 excused nonprofits operating "exclusively for religious, charitable, or educational purposes" in order to continue acting in the public interest.

President Donald Trump is looking to challenge that designation, complaining that colleges and universities are "indoctrinating" their students with "radical left" ideas, rather than educating them. And he has decided to start with the 488-year old Harvard University, one of the world's most prestigious institutions of learning and the first college founded in the American colonies.

On Tuesday, he targeted Harvard University in a post on his social media site, questioning whether it should remain tax-exempt "if it keeps pushing political, ideological, and terrorist inspired/supporting "Sickness?" Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!"

Tax-exempt status, which is decided by the Internal Revenue Service, means that these institutions do not pay certain kinds of taxes and that their donors receive a tax deduction when they make gifts. The rules they have to follow to maintain that status are set out in the tax code. We spoke with attorneys who specialize in nonprofit law and freedom of speech to try to answer questions about this challenge.

Does a university's curriculum affect its charitable status?

In general, no. Colleges and universities have broad leeway to design the education they provide.

Genevieve Lakier, a First Amendment scholar at the University of Chicago Law School, said the U.S. Supreme Court has laid out four essential freedoms for colleges and universities -- what to teach, how to teach it, who their students are and who their professors are.

"That's the irreducible core of academic freedom and it is constitutionally protected in this country," she said, adding the government cannot threaten funding cuts or revoking a school's tax status as punishment for its views or what the school teaches.

The First Amendment also protects the rights of other nonprofits to pursue their charitable missions under freedom of assembly, Lakier said, even if those missions are odious or the government does not like them.

Can the president ask the IRS to revoke a nonprofit's tax-exempt status?

No, he is not supposed to, according to two nonprofit tax attorneys who wrote about a previous call from Trump to revoke the nonprofit status of colleges and universities.

In 1998, Congress passed a law that forbade federal officials from telling the IRS to investigate any taxpayer in an effort to increase trust in tax enforcement.

The attorneys, Ellen Aprill and Samuel Brunson, also pointed to legislation that forbade the IRS "from targeting individuals and organizations for ideological reasons," after a controversy over how it treated Tea Party groups in 2013.

How does a nonprofit get and keep its tax-exempt status?

The IRS recognizes multiple reasons for a nonprofit to to be exempt from paying many kinds of taxes, including pursuing charitable, religious or educational missions among many other examples. The statute specifically names sports competitions, preventing cruelty to children or animals and defending human or civil rights as exempt purposes.

Nonprofits can lose their tax-exempt status for things like improperly paying its directors, endorsing a political candidate or operating a business unrelated to its charitable mission.

In short, tax attorneys say nonprofits must operate "exclusively for charitable purposes," which is a different standard than what the president referred to as, "acting in the public interest."

Phil Hackney, a law professor at the University of Pittsburgh, said, "Long history and precedent suggest that Harvard and institutions of higher education are operating for educational purposes, which are considered charitable," under the tax code.

He said it would be exceedingly difficult to make a case that a college or university was not operating for charitable purposes under current law. However, Edward McCaffery, who teaches tax policy at the University of Southern California Gould School of Law, warned there is precedent for the IRS revoking the tax-exempt status of colleges that the government could lean on.

"I think to dismiss it out of hand as over-the-top bluster and that the administration has no power to unilaterally pursue it, I think that's naive," McCaffery said. "This could happen."

Has the IRS ever stripped a college of its tax-exempt status before?

Yes. In 1983, the Supreme Court upheld a lower court decision that the IRS could deny tax-exempt status to Bob Jones University, a private Christian university that banned interracial dating and marriage on campus, and Goldsboro Christian Schools, which employed racially discriminatory admissions policies.

The court found the IRS had some discretion to determine whether an organization seeking tax-exempt status met standards of "charity," meaning that it "must serve a public purpose and not be contrary to established public policy."

Nonetheless, McCaffery said, "The ability of the IRS just to come in and deny tax exemption, it better be a very clear, long-standing, deeply held public policy, and not political preferences for certain kinds of positions, attitudes and voting patterns."

How can the IRS revoke a nonprofit's tax-exempt status?

Usually, the IRS would open an audit, where it gathers evidence that a nonprofit is not operating exclusively for charitable purposes.

"The IRS would have to send to Harvard a proposed revocation of its status," Hackney said. "At that point, Harvard would have many different means to talk with the IRS about why they believed they were within the law," including suing.

However, Hackney said the U.S. Department of Treasury could implement new regulations, for example, stating that operating a diversity, equity and inclusion program is not consistent with charitable purposes. Such a change would usually take years to make and would run counter to decades of precedent, Hackney said.

"I am skeptical this effort will be successful," he said. "If it were, this would be the most dramatic change of charitable law in my lifetime and I would say in the history of our charitable law."

___

Associated Press coverage of philanthropy and nonprofits receives support through the AP's collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP's philanthropy coverage, visit https://apnews.com/hub/philanthropy.

Continue Reading...

Popular

Leaked Documents Unveil Meta's $16 Billion Revenue Projection From Scam Ads

Leaked internal documents have revealed that Meta projected a revenue of approximately $16 billion from scam advertisements and banned goods in 2024.

The Market Just Crossed a Dangerous Line - Ad

The man who predicted the 2008 crash and 2020 says today's soaring markets are NOT a bubble - they're something far stranger and more dangerous. He says it's about to change everything you know about money.

Trump attacks ABC News correspondent Mary Bruce in angry response to three sharp questions

NEW YORK (AP) — President Donald Trump denounced ABC News' Mary Bruce as a “terrible reporter” Tuesday and threatened the network's license to broadcast after she asked him three sharp questions at the White House.

Trump administration revives rollbacks of species protections from first term

BILLINGS, Mont. (AP) — President Donald Trump's administration moved Wednesday to roll back protections for imperiled species and the places they live, reviving to regulations during the Republican's first term under former Democratic President Joe Biden.

From Strong to Stunning: New Drill Hole Sets a New Bar - Ad

Earlier holes showed 2.4% and 2.7% CuEq. This new hit just delivered 6.93% over nearly 20 metres. That's a game-changer - and it comes with deep insider alignment and an active program.

Schwab: Half Of US Investors May Ditch Other Assets For ETFs — 4 Funds To Watch

Nearly half of ETF investors could go all-ETF within five years, Schwab says. Here's how they're building portfolios with funds like ITOT, BND, and XLK.

Marjorie Taylor Greene Buys Blue Chip Stock Near 52-Week Low

Marjorie Taylor Greene is known for buying multiple stocks at a time, based on recent disclosures. A new filing shows one stock bought in November.

Metals... Not Missles... Is the New Arms Race - Ad

China and Russia control 70% of the world's critical minerals, giving them leverage over the West. One N. American discovery could help shift that balance by developing the metals essential for defense systems.

These are the 37 donors helping pay for Trump's $300 million White House ballroom

WASHINGTON (AP) — President Donald Trump says his $300 million White House ballroom will be paid for “100% by me and some friends of mine.”

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

George Gilder - who predicted the iPhone 17 years early and gave Reagan the first microchip - is making his boldest call yet. He says an American nanotech "super-convergence" could mint more millionaires than any event in recent memory. He's found 3 stocks set to benefit the most.

France threatens to block Shein over sale of childlike sex dolls ahead of Paris store opening

PARIS (AP) — French authorities have warned they may block access to after it emerged that the online fast fashion giant had been selling sex dolls with a childlike appearance.

Jim Cramer: Chipotle Is 'Too Expensive,' Buy This Plane Maker

On "Mad Money," Cramer discusses Henry Schein, Bloom Energy, Tyler Technologies, Boeing and Chipotle Mexican Grill.

Gold Near $4,073. Copper Tight. This Drill Hit Came Just in Time. - Ad

Dual exposure to two surging metals, plus 17.91% CuEq over mineable width, and infrastructure on site - this is what juniors dream of. And the market is just starting to notice.

Pete Hegseth Says War Department Preparing For 'Action' In Nigeria

U.S. Defense Secretary Hegseth agrees with Trump's order to prepare for action in Nigeria to stop the killing of Christians by Islamist militants.

Can Solana Do What Bitcoin Can't? Amplify's New ETF Aims For 36% Income

Amplify ETFs, the issuer known for thematic and income-driven fund products, has just launched the Amplify Solana 3% Monthly Option Income ETF (BATS:SOLM), a first-of-its-kind product combining the growth momentum in Solana (CRYPTO:

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

Cathie Wood Goes All-In On Peter Thiel's Crypto Play Bullish With Back-To-Back Million-Dollar Buys

Cathie Wood-led Ark Invest purchased shares in Bullish, a crypto exchange backed by Peter Thiel, through three of its funds. Other key trades were also made, including buying shares in CRISPR and Beam Therapeutics.

Pfizer clinches deal for obesity drug developer Metsea after a bidding war with Novo Nordisk

NEW YORK (AP) — U.S. pharmaceutical giant Pfizer signed a deal to purchase development-stage obesity drugmaker Metsera Inc., winning a bidding war against Novo Nordisk, the Danish drugmaker behind weight-loss treatments Ozempic and Wegovy.

Copper and Gold in Scale, Not Just Grade - Ad

This isn't a narrow system. It's a thick, mineralized zone delivering copper and gold together - in a province with infrastructure in place. New drill targets are already being tested.

Tempus AI Stock (TEM) Slides 6% Overnight: Here's Why The Stock Is Trending

Tempus AI shares fell 6.02% in after-hours trading Tuesday following its third-quarter earnings report.

Buy Now Pay Later Can Torpedo Mortgage Chances

BNPL services like Affirm, Klarna, Afterpay, and PayPal Pay Later are popular but can hurt mortgage approval. Lenders scrutinize bank statements and debt-to-income ratio, and new credit models include BNPL data. Loan officers warn of multiple plans inflating DTI.

Bloomberg says AI is a $50 trillion revolution. - Ad

And at the center of it... isn't NVIDIA. It's a tiny supplier NVIDIA cannot live without. Insiders like Griffin and Druckenmiller are dumping NVIDIA shares... and quietly piling into this obscure stock. And with NVIDIA set to make a major announcement on December 19 at 5pm, time is running out.

'No hire' job market leaves unemployed in limbo as threats to economy multiply

WASHINGTON (AP) — When Carly Kaprive left a job in Kansas City and moved to Chicago a year ago, she figured it would take three to six months to find a new position. After all, the 32-year old project manager had never been unemployed for longer than three months.

America's Defense Future Starts Underground - Ad

A N. American metals project just caught the attention of Rio Tinto - a mining giant. With four projects in key regions, this firm is aligned with Washington's push to rebuild the defense-metal supply chain.

Some Social Security Recipients Won't Have To Wait Until 2026 For COLA Hike

Social Security and SSI recipients will receive a 2.8% cost-of-living adjustment in 2026, with SSI beneficiaries seeing the increase a day earlier due to a federal holiday.

Taylor Swift, Elon Musk, Donald Trump, MrBeast — Robinhood Just Made Their Mojo Tradable

Robinhood has new prediction markets for its customers, with a focus on the entertainment sector. Here are some of the new markets.

Elon's $25 Trillion Confession - Ad

Elon Musk: "Tesla will become a $25 trillion company." That would make Tesla 8x bigger than Apple today. How is that possible? He admits it's all thanks to this one AI breakthrough that will take AI out of our computer screens and manifest a 250x boom here in the real world.

Zohran Mamdani Was Crypto Bettors' Overwhelming Favorite For New York City Mayor At 100% Odds — And He Just Won

Zohran Mamdani won the high-stakes New York City mayoral race Tuesday,  a victory widely anticipated by cryptocurrency bettors, who had overwhelmingly backed the Democratic Socialist.

The Market Just Crossed a Dangerous Line - Ad

The man who predicted the 2008 crash and 2020 says today's soaring markets are NOT a bubble - they're something far stranger and more dangerous. He says it's about to change everything you know about money.

NATO member Romania signs agreement with Germany’s Rheinmetall to build a gunpowder plant

BUCHAREST, Romania (AP) — NATO member Romania signed an agreement Monday with German defense company Rheinmetall to build a gunpowder factory in central Romania, as

Trump Barred From Deploying Oregon National Guard To Portland, Judge Cites State Sovereignty

A federal judge handed down a decisive ruling on Friday, blocking Trump's attempt to send Oregon's National Guard to Portland.

From Strong to Stunning: New Drill Hole Sets a New Bar - Ad

Earlier holes showed 2.4% and 2.7% CuEq. This new hit just delivered 6.93% over nearly 20 metres. That's a game-changer - and it comes with deep insider alignment and an active program.

Bitcoin's Crash Below $100,000 Isn't The End: Wall Street Vet Says: 'We Have To Get Through This'

For the first time since July, Bitcoin (CRYPTO: BTC) fell below $100,000 on Tuesday as the crypto sell-off saw $1.7 billion in liquidations in 24 hours.

Japanese game maker Nintendo reports zooming sales and profit on its hit Switch 2 machine

TOKYO (AP) — Japanese video-game maker Nintendo’s net profit jumped 85% in April-September from the year before, as its sales more than doubled following the launch of its hit Switch 2 console in June, the company said Tuesday.

Metals... Not Missles... Is the New Arms Race - Ad

China and Russia control 70% of the world's critical minerals, giving them leverage over the West. One N. American discovery could help shift that balance by developing the metals essential for defense systems.

Investigators look into 'repeating bell' heard during takeoff of UPS cargo plane that crashed

LOUISVILLE, Ky. (AP) — A repeating bell sounded in the cockpit for 25 seconds as pilots tried to control a UPS cargo plane that caught fire, had an engine fall off and this week in Louisville, Kentucky, a National Transportation Safety Board member said Friday.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright traderelite.club
Privacy Policy | Terms of Service