From the Council of American Private Education:

Private school advocates are applauding a federal appeals court ruling that “501(c)(3) status does not constitute receipt of federal financial assistance.”

Yesterday’s decision by the United States Court of Appeals for the Fourth Circuit overturned a lower court ruling that had stunned the nonprofit community by declaring that tax-exempt status is a form of federal financial assistance. Under that anomalous understanding, private schools and other nonprofits would be subject to various federal regulations, including Title IX, simply because of their tax-exempt status. Previously, private schools were only thought to be subject to federal regulations if they accepted federal funds.

In plain language, the three-judge panel from the 4th Circuit unanimously agreed with the previous understanding:

“Tax exemption is not ‘Federal financial assistance.’

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