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Whatever may be the rationale for such private schools' policies, racial discrimination in education is contrary to public policy. 574 (1983), was a decision by the United States Supreme Court holding that the religion clauses of the First Amendment did not prohibit the Internal Revenue Service from revoking the tax exempt status of a religious university whose practices are contrary to a compelling government public policy, such as eradicating racial discrimination.
Racially discriminatory educational institutions cannot be viewed as conferring a public benefit within the above 'charitable' concept or within the congressional intent underlying 501(c)(3)." Bob Jones University v. Because of its interpretation of Biblical principles regarding interracial dating, Bob Jones University completely excluded black applicants until 1971, and from 1971 until 1975, admitted black students only if they were married.
After 1975, the University began to admit unmarried black applicants, but continued to deny "admission to applicants engaged in an interracial marriage or known to advocate interracial marriage or dating." The University also imposed a disciplinary rule that prohibited interracial dating. In response, the University filed suit in 1971 in Bob Jones University v. The United States District Court for the District of South Carolina granted a preliminary injunction, but the United States Court of Appeals for the Fourth Circuit reversed in 1973, citing the Anti-Injunction Act.
Under pre-1970 IRS regulations, tax exemptions were awarded to private schools regardless of their racial admissions policies, and Bob Jones University was approved for a tax exemption under that policy. The University petitioned for a rehearing in the Appeals Court in Bob Jones University v. The Appeals Court ruled March 21, 1973, stating that Americans United v.
History professor Carl Abrams explained the history behind the school’s ban on interracial dating, and how that ban came to an end in 2000.
Bob Jones University President Steve Pettit talked about the college’s history and how it came to Greenville, south Carolina.
Pursuant to a 1970 revision to IRS regulations that limited tax-exempt status to private schools without racially discriminatory admissions policies, the IRS informed the University on November 30, 1970 that the IRS was planning on revoking its tax exempt status as a "religious, charitable . Walters did not conflict with the decision in 1973.
The Supreme Court affirmed the Court of Appeals decision in Bob Jones University v. The case was decided May 15, 1974, in an 8-0 decision (Douglas not participating).
On national television in March 2000, Bob Jones III, who was the university’s president until 2005, stated that BJU was wrong in not admitting African-American students before 1971, which sadly was a common practice of both public and private universities in the years prior to that time.
On the same program, he announced the lifting of the University’s policy against interracial dating.