The proposal would expand the conditions for maintaining Section 501(c)(3) status and eliminate existing exceptions for certain race-conscious programs.
On September 4, 2026, the Internal Revenue Service (IRS) published proposed regulations that would significantly expand the requirement that private schools holding tax-exempt status under Section 501(c)(3) maintain racially nondiscriminatory policies. The proposed rules, which would come into effect for taxable years beginning on or after May 31, 2027, prohibit any policy or practice that discriminates on the basis of race





