WASHINGTON, D.C. (September 3, 2026) – Today, Independent Sector released the following statement in response to proposed regulatory changes that would restrict the ability of tax-exempt private educational institutions to serve and support minority students (view the text of the unpublished rule).
“The U.S. charitable sector is built upon fundamental freedoms enshrined within our Constitution: free speech, free assembly, freedom of worship, and free association. The proposed rule change advanced by the current administration, which would strip private educational institutions of their tax-exempt status for administering or supporting any policy or program intended to remediate over two centuries of racial discrimination in the American educational system, cuts at the heart of these fundamental freedoms,” said Dr. Akilah Watkins, CEO and president of Independent Sector. “This rule change would fundamentally limit the ability of organizations to support their communities and advance moral causes in accordance with their values and lawful missions. If adopted, this rule would create a dangerous precedent that could open the door for any future administration to label any politically disfavored mission as against “fundamental public policy” to justify stripping those organizations of their tax-exempt status. Charities shouldn’t have to work with one hand tied behind their back, and Independent Sector urges the administration to listen to our sector’s concerns before proceeding with this damaging rule.”
###
Independent Sector is the national membership organization that connects, strengthens, and advocates for nonprofits and philanthropies. Learn more at independentsector.org.
Media Contact: Chloe Kessock, chloek@independentsector.org, 727-433-2972
