Responding to Proposed IRS Regulations: Racial Nondiscrimination in Private Schools
On September 3, 2026, the Department of Treasury (Treasury) and Internal Revenue Service (IRS) released a Notice of Proposed Rulemaking that would end federal tax-exempt status for private schools that engage in racial discrimination. You can read our detailed summary of the proposed regulation for more information.
While the proposed regulation will likely not have a direct impact on foundations or philanthropic giving, it is possible that you might get questions about the indirect impact of these regulations. If you are asked about these proposed regulations by media, here are some things you can say. If you'd like advice on responding to a journalist on this topic, please reach out to communications@cof.org.
Suggested talking points
- Our foundation's grantmaking exists to create opportunity in the communities we serve, and it operates within the law, as it always has.
- Philanthropy's core work is to support the issues, causes, and communities that otherwise would go without. A rule like this risks further curtailing support for the very people and groups that have been habitually under-resourced.
- We are mindful that a rule like this can have a chilling effect on lawful, needed work, and communities feel that long before any regulation takes effect.
- Tax-exempt status should depend on whether an organization's work is charitable, not on whether it aligns with the policy preferences of whoever holds office. That principle protects every foundation, regardless of what it funds or who is in power.
- The proposed rule is just that: proposed. It is open for public comment and would not take effect until tax years beginning after May 31, 2027. In the meantime, existing law governs our work, and we will continue to ensure that work maintains the highest legal standards.
The Council's Communications team is happy to support if you need any assistance in responding to inquiries about this matter. Please reach out to communications@cof.org with any questions.
