Brace Yourself for Jeff Bezos' "Amazon Helios"

Amazon delivers 20 million packages a day... powers some of the most popular websites... delivers medication to half of the U.S. population... and even produces award-winning films and TV shows. But a Wall Street legend -- twice featured on 60 Minutes -- predicts that "Amazon Helios" will be bigger than all of those... COMBINED.

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

Elon Musk's PAC Promised $100 Per Signature—Now It's Facing a Lawsuit

Elon Musk is facing a lawsuit filed by three swing state voters. The plaintiffs allege that Musk failed to fulfill his promise of payment for signing a petition from his political action committee, America PAC.

In battle against transgender rights, Trump targets HUD’s housing policies

As a transgender man, the words “you’re a girl” gutted Tazz Webster, a taunt hurled at him from the day he moved into his St. Louis apartment.

You Can Take a Stake in Elon's xAI Before June 1st... - Ad

Elon Musk's private AI firm xAI may have just leapfrogged ChatGPT and Google's Gemini--building what experts call the future of AI. For the first time, you can take a stake starting at $500.

Marjorie Taylor Greene Goes Stock Shopping Again: Here Are 50+ Stocks The Congresswoman Bought

Marjorie Taylor Greene disclosed buying more than 50 stocks in early May. A look at the list and why the congresswoman's past trades have drawn red flags.

Nvidia's Ecosystem May Have Found a New Rising Star - Ad

This tiny company is already generating revenue by delivering real compute-$20M+ in deals. With access to NVIDIA's partner network, they're not just watching the AI boom-they're powering it.

What's Going On With Advanced Micro Devices?

Advanced Micro Devices Inc. (NASDAQ:AMD) shares are trading higher Monday after a volatile week shaped by investor trades and broader movement in semiconductor stocks.

Warren Buffett To Step Down as Berkshire Hathaway CEO by End of Year, Asks Board To Confirm Greg Abel as Successor (CORRECTED)

Warren Buffett shocked attendees at the Berkshire Hathaway annual meeting on Saturday by announcing that he will step down as CEO by the end of the year, with Greg Abel set to succeed him.

Powering Ai's Future? One Company Is Already Doing It - Ad

Massive compute demand is choking AI's growth. While others wait, this firm is building infrastructure now-with elite GPUs and long-term contracts.

Asia Mixed, Europe Markets Gain; Gold Softens On Easing Tensions - Global Markets Today While US Slept

US markets closed higher as strong earnings, trade developments, and recession concerns were weighed. DJIA up 0.75%, S&P 500 up 0.58%, Nasdaq up 0.55%.

Trump: Harvard's Not a School, It's a 'Political Entity' That Should Be Taxed

Trump escalates his feud with Harvard, vowing to revoke its tax-exempt status over alleged political bias and public interest violations.

Government Moves + Nvidia Deals = AI Infrastructure Tailwinds - Ad

From Trump's Stargate initiative to NVIDIA's $500B bet, AI infrastructure is now strategic. This company is positioned at the heart of the buildout.

Elon Musk Reacts After Ray Dalio Warns Of US Decline, US Retailers Push Chinese Suppliers To Resume Shipments And More: This Week In Economics

The weekend saw major developments, including Elon Musk's response to Ray Dalio's warning about U.S. decline, U.S. retailers pushing for resumed Chinese shipments, Musk's mixed feelings about his first 100 days, and the Nasdaq's impressive recovery.

This Coin Could Surge Like Bitcoin Did Back in 2013... - Ad

A new coin is emerging in the crypto world. And investing in it now could end up like Bitcoin or Ethereum during their first bull runs.

Trump's First 100 Days, Michigan Democrat Files For President's Impeachment, Elon Musk's Scrutiny Of Federal Reserve Spending And More: This Week In Politics

The week has been a whirlwind of political and financial news. From Elon Musk's mixed feelings about his role in the Department of Government Efficiency (DOGE) to the impeachment proceedings against President Donald Trump, there's a lot to unpack. Let's dive into the top stories of the week.

Asian shares rise after gains on Wall Street as corporate profits pile higher

Shares were mixed Wednesday in Asia after U.S. stocks rose again as companies reported stronger-than-expected profits.

Is Trump Working Against America?? - Ad

As the market lost $5 trillion, Trump called it a "great time to get rich." Was it reckless--or part of a shocking master plan? Critics don't see it, but the real story behind Trump's move could change everything. A major twist is coming by June 17th-don't miss this.

Scaramucci Calls Sam Bankman-Fried Revelation Worst Day of His Career: 'I Trusted the Guy, I Liked Him'

Anthony Scaramucci, who is known for his short stint as the White House communications director under Donald Trump, has opened up about his professional setbacks, including a significant loss due to a fraudulent act by Sam Bankman-Fried.

The EU seeks to halt Russian gas imports by the end of 2027 and ban new contracts already this year

BRUSSELS (AP) — The European Union should halt imports of Russian natural gas by the end of 2027 to deprive President Vladimir Putin of revenue that helps fuel his , the bloc’s executive branch said Tuesday.

Trump's Crypto Blueprint Unveils This Infrastructure Powerhouse - Ad

One blockchain token sits at the heart of Washington's pro-crypto agenda. Institutions are loading up while it still trades at a discount. Here's how to get in for $3.

InterDigital Reports Q1 Earnings: The Details

InterDigital Inc (NASDAQ:IDCC) reported financial results for the first quarter before the market open on Thursday. Here's a look at the key metrics from the quarter.

Applied Digital (APLD) Secures $150M Preferred Equity Deal: What's Going On?

Applied Digital shares are trading higher by 14% during Thursday's session. The company announced it had entered into a Preferred Equity Purchase Agreement with select investors.

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

Neurocrine Biosciences' Ingrezza Q1 Sales Prove Resilient, Analysts Boost Price Target

Neurocrine stock gains as Q1 EPS beats estimates; Ingrezza sales climb 8% YoY with record new patients and strong analyst price target hikes.

Brace Yourself for Jeff Bezos' "Amazon Helios" - Ad

Amazon delivers 20 million packages a day... powers some of the most popular websites... delivers medication to half of the U.S. population... and even produces award-winning films and TV shows. But a Wall Street legend -- twice featured on 60 Minutes -- predicts that "Amazon Helios" will be bigger than all of those... COMBINED.

Consumer Tech News (Apr 28-May 2): Trump May Ease Auto Part Tariffs, House Republicans Tabled $250 Charge On EV & More

Trump to sign Take It Down Act targeting deepfake media, while easing tariffs on foreign parts for US vehicles. Apple reports strong earnings and considers shift to India amid China tariff pressures.

Cheap parcels from China will no longer be duty-free. Here's what it means for buyers and sellers

NEW YORK (AP) — Consumers can expect higher prices and delivery delays when the Trump administration ends a duty-free exemption on low-value imports from China Friday.

Have You Seen this Strange Elon Musk Device? - Ad

Tech legend Jeff Brown predicts this "space technology" will be Elon Musk's next trillion-dollar business, and it will make a lot of people rich. This could be the biggest internet innovation since the first web browser Netscape kicked off the internet boom in the late 1990s.

UN official urges Israel to lift aid blockade of Gaza and calls it 'cruel collective punishment'

JERUSALEM (AP) — The United Nations’ emergency relief coordinator urged Israel on Thursday to lift its blockade of aid into the Gaza Strip, saying the amounts to “cruel collective punishment.”

Missouri court upholds voter approval of minimum wage and paid sick leave initiative

JEFFERSON CITY, Mo. (AP) — The Missouri Supreme Court on Tuesday upheld a voter-approved ballot measure gradually raising the state's minimum wage to $15 an hour and requiring employers to provide paid sick leave to workers.

He Called Bitcoin to $100k... Now He Says This Coin Is Next - Ad

Juan Villaverde may be America's top crypto expert. According to Juan's timing model, we are entering what could be the biggest bull market in crypto's history. With America's first crypto president in office, it could be the biggest gains the market has ever seen. And one special coin could skyrocket.

The AI Bottleneck Is Real-and One Firm Is Solving It - Ad

AI is scaling fast-but infrastructure is lagging. This firm isn't just aware of the problem, it's building the solution: servers, GPUs, and strategic AI deployments. NVIDIA noticed. Investors should too.

Andy Jassy Pushes For Start-Up Mindset At Amazon: 'When You Get Larger...You Can Get Slowed Down'

Amazon.com Inc. (NASDAQ: AMZN) CEO Andy Jassy reinforced his mission to return the e-commerce giant to its startup roots during remarks at the Harvard Business Review Leadership Summit on Monday, emphasizing improved collaboration from the company's return-to-office mandate and streamlined management.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

India and Pakistan don’t fight wars like other countries. Here’s why

ISLAMABAD, Pakistan (AP) — have fought three full-scale wars since they gained independence from British India in 1947. They’ve also had dozens of skirmishes and conflicts, including one atop a glacier dubbed the coldest and highest-altitude battlefield in the world.

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