Just today, the U.S. Court of Appeals for the Fourth Circuit ruled that 501(c)(3) status “does not equate to ‘receiving Federal financial assistance.’”
This new development comes from an appeal of a 2022 case in Maryland that ruled that a private school’s tax-exempt status is financially benefiting the school and should be considered federal financial assistance, making it subject to Title IX of the Education Amendments of 1972 (“Title IX”) and likely a host of other similar federal laws. Read more about this case and two others around the country here.
The Council for American Private Education (CAPE) and several other private school advocacy organizations supported an appeal to that decision which was ultimately reversed today by the Fourth Circuit Court. This federal court hears appeals from district courts in Maryland, North Carolina, South Carolina, Virginia and West Virginia. See CAPE’s statement on the ruling here.
Legal experts say they don’t expect an appeal of today’s decision at this time.
Wisconsin private schools and 501(c)(3) organizations can continue to operate “business as usual.” WCRIS will continue to watch this case on our members’ behalf and will communicate any relevant updates in Current Events.
