Bob jones university policy against interracial dating
After paying a portion of the federal unemployment taxes for a certain taxable year, the University filed a refund action in Federal District Court, and the Government counterclaimed for unpaid taxes for that and other taxable years. 81-1, petitioner Goldsboro Christian Schools maintains a racially discriminatory admissions policy based upon its interpretation of the Bible, accepting for the most part only Caucasian students.
Holding that the IRS exceeded its powers in revoking the University's tax-exempt status and violated the University's rights under the Religion Clauses of the First Amendment, the District Court ordered the IRS to refund the taxes paid and rejected the counterclaim. The IRS determined that Goldsboro was not an organization described in 501(c)(3) and hence was required to pay federal social security and unemployment taxes.
The university has made the right decision."The school banned interracial dating, although it started admitting black students after it lost its tax exemption in 1983 after a 13-year battle with the Internal Revenue Service that cited the school's discrimination.
The District Court entered summary judgment for the IRS, rejecting Goldsboro's claim to tax-exempt status under 501(c) (3) and also its claim that the denial of such status violated the Religion Clauses of the First Amendment. Held: Neither petitioner qualifies as a tax-exempt organization under 501(c)(3). Thus, to warrant exemption under 501(c)(3), an institution must fall within a category specified in that section and must demonstrably serve and be in harmony with the public interest, and the institution's purpose must not be so at odds with the common community conscience as to undermine any public benefit that might otherwise be conferred. It would be wholly incompatible with the concepts underlying tax exemption to grant tax-exempt status to racially discriminatory private educational entities. Jones told King that the school had no Bible verse to support its ban, and that it was "an insignificant" part of the school's stance against a one-world order.Jones said the blending of worldwide governments, ethnic groups and religions would signal the coming of the Antichrist and so the school stands against that."We don't have to have that rule," Jones said. It's so significant to the world at large, the media in particular, why should we have this thing here as an obstacle?Bush later apologized for failing to criticize the school's anti-Catholic views and racial policies during his visit to the Greenville, S. campus."I'm pleased that they've changed the policy," Bush said Friday while campaigning in New York."Right after my speech, I spoke out against the policy.