Colleges Await Looming IRS Guidance on Race and Admissions

Private colleges and universities with programs aimed to benefit racial minorities are girding themselves for new rules governing their tax-exempt status after a year of increased scrutiny by President Donald Trump.

The administration, which plans to issue guidance in the next year, has cracked down on what it sees as illegal diversity, equity, and inclusion practices. Universities and other nonprofits have spent the past year understanding the line between illegal and legal DEI initiatives.

The IRS said it will address “the application of fundamental public policy against racial discrimination, including consideration of recent caselaw, in determining the eligibility of private ...