Latest news with #501(c)3
The National
02-05-2025
- Politics
- The National
Harvard responds after Trump vows to revoke university's tax exempt status
US President Donald Trump on Friday said he would revoke the university's tax exempt status. It was not immediately clear if he had the statutory authority to unilaterally strip Harvard's tax-exempt status and any attempt is likely to end up being decided by the courts. 'We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!' he wrote on Truth Social. Under US tax law, universities, churches, various non-profits and charities fall under the 501(c) 3 tax exemption. A change to this status could have ramifications for other universities beyond Harvard, and potentially churches and non-profit organisations. A Harvard spokesperson didn't mince words when asked for a response from The National to President Trump's social media post, saying there was no legal basis for him to rescind Harvard's tax-exempt status. 'The government has long exempted universities from taxes in order to support their educational mission," the spokesperson said. "The tax exemption means that more of every dollar can go toward scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth." The spokesperson, also described Mr Trump's vow as unprecedented, and said that if it came to fruition, would endanger Harvard's ability to carry out its educational mission my diminishing financial aid for students and abandoning medical research programmes." "The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America," Harvard's spokesperson added. President Trump didn't expand on how he would remove Harvard's tax exempt status. His approach in his second term thus far has been to issue far-reaching decrees and see what ends up being rejected by the courts. It's the latest in a series of back-and-forth volleys between Mr Trump and Harvard, one of the world's most prestigious universities. The university last month announced plans to sue the Trump administration to stop a freeze on billions of dollars in funding. The lawsuit, filed in federal court, accuses the Trump administration of an unconstitutional campaign to 'punish Harvard for protecting its constitutional rights', according to the university's newspaper, The Crimson. The Trump administration withheld funding from Harvard, Columbia and other universities in response to their tolerance of pro-Palestinian demonstrations, in what it has described as a failure to control anti-Semitism on campus. 'The trade-off put to Harvard and other universities is clear: allow the government to micromanage your academic institution or jeopardise the institution's ability to pursue medical breakthroughs, scientific discoveries and innovative solutions,' Harvard's lawyers wrote in April. The Trump administration's decision to cut funding to Harvard followed $400 million in cuts to Columbia University in New York over accusations that the institutions tolerated anti-Semitism on campus. In recent weeks, the White House called for sweeping changes as to how Harvard is governed, and sought to influence the university's hiring practices and admissions procedures. It has also sought an increase in deciding how Harvard operates its diversity offices and to what extent it co-operates with immigration screenings for international students. Harvard has largely balked at those attempts, both in press statements to the media and in lawsuits.
The National
02-05-2025
- Business
- The National
Trump says he's revoking Harvard's tax exempt status
US President Donald Trump on Friday said he would revoke the university's tax exempt status. It was not immediately clear if he had the statutory authority to unilaterally strip Harvard's tax-exempt status and any attempt is likely to end up being decided by the courts. 'We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!' he wrote on Truth Social. Under US tax law, universities, churches, various non-profits and charities fall under the 501(c) 3 tax exemption. A change to this status could have ramifications for other universities beyond Harvard, and potentially churches and non-profit organisations. President Trump didn't expand on how he would remove Harvard's tax exempt status. His approach in his second term thus far has been to issue far-reaching decrees and see what ends up being rejected by the courts. It's the latest in a series of back-and-forth volleys between Mr Trump and Harvard, one of the world's most prestigious universities. The university last month announced plans to sue the Trump administration to stop a freeze on billions of dollars in funding. The lawsuit, filed in federal court, accuses the Trump administration of an unconstitutional campaign to 'punish Harvard for protecting its constitutional rights', according to the university's newspaper, The Crimson. The Trump administration withheld funding from Harvard, Columbia and other universities in response to their tolerance of pro-Palestinian demonstrations, in what it has described as a failure to control anti-Semitism on campus. 'The trade-off put to Harvard and other universities is clear: allow the government to micromanage your academic institution or jeopardise the institution's ability to pursue medical breakthroughs, scientific discoveries and innovative solutions,' Harvard's lawyers wrote in April. The Trump administration's decision to cut funding to Harvard followed $400 million in cuts to Columbia University in New York over accusations that the institutions tolerated anti-Semitism on campus. In recent weeks, the White House called for sweeping changes as to how Harvard is governed, and sought to influence the university's hiring practices and admissions procedures. It has also sought an increase in deciding how Harvard operates its diversity offices and to what extent it co-operates with immigration screenings for international students. Harvard has largely balked at those attempts, both in press statements to the media and in lawsuits.
Straits Times
21-04-2025
- Business
- Straits Times
Climate non-profits anticipate fight with Trump over tax status
U.S. President Donald Trump gestures while wearing a hat that reads \"Gulf of America\", as he returns to the White House, in Washington, D.C., U.S., April 20, 2025. REUTERS/Ken Cedeno WASHINGTON - U.S. non-profit organizations that focus on climate change are getting ready to fight a possible move by the Trump administration to revoke their tax exemptions as soon as this week. Groups that work on climate change have been circulating memos over the last few days outlining rumored executive actions they expect from President Donald Trump, include a change to IRS rules to remove climate change from qualifying charitable topics and blocking the use of U.S. grants to fund overseas work. The concern follows comments from Trump taking aim at the charitable status of Harvard University, seen as a potential first shot against other so-called 501(c)3 organizations, named for the part of the tax code that exempts charities from income tax. The American Civil Liberties Union and Public Citizen held a Zoom call on Friday to discuss how charities can prepare for a possible executive action, according to three leaders of non-profit groups that participated. The call was oversubscribed after the maximum 5,000 people signed in. Political law firm Sandler Reiff on Friday circulated a memo to its non-profit and philanthropy clients advising them not to panic if the administration attempts to revoke their tax-exempt status or freeze international work. "The President does not have the ability to unilaterally revoke any organization's tax exempt status," the memo, seen by Reuters, said, adding that any executive order that attempts to do that "does not have legal validity". Since his January inauguration, Trump has cracked down on top U.S. universities, accusing them of tolerating antisemitism. He has also moved quickly to undo or sidestep environmental regulation, gut climate science research and halt federal support for clean energy. Trump had said in a social media post last week that he was considering whether to seek to end Harvard's tax-exempt status. Environmental groups and grant-making philanthropies have been bracing for some kind of move from the Trump administration to chill their climate work. Foundations that give to charities say they would fight attempts to limit their giving. The MacArthur Foundation, with around $8 billion, has pledged to spend an additional $150 million in charitable gifts over the next two years. "We have the ability to do it with more protection and strength than we think," the Foundation's President John Palfrey told delegates at a meeting of philanthropic groups in Britain this month. "Drop whatever restrictions we think we can drop. Give gifts wherever we can." Lawrence Lessig, a professor at Harvard Law School, said an order attempting to change non profits' tax status would be on shaky legal ground. "There is no chance that a court would conclude that Trump has the power to change the tax status of any organization, absent an investigation beginning before Trump targeted the organization, that determined the organization had violated the law," he said. REUTERS Find out more about climate change and how it could affect you on the ST microsite here.
