Tax Notes Talk Harvard vs. Trump: The Battle Over Tax-Exempt Status
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Aug 15, 2025 Join Ellen Aprill, a Senior Scholar at UCLA School of Law, as she dives into the intense legal battle between Harvard and the Trump administration over tax-exempt status. She unpacks the ramifications of potential revocation on nonprofit organizations, especially concerning funding and academic freedom. Topics include the processes of tax-exempt status audits, the implications of discrimination claims, and the broader impact on institutions. Aprill also discusses navigating compliance in a rapidly shifting public policy landscape.
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Core Compliance Requirements
- 501(c)(3) organizations must apply for exemption, file Form 990 annually, and disclose major changes on the 990.
- Failure to file three consecutive 990s triggers automatic loss of exemption under recent law.
Typical Grounds For Revocation
- Common grounds for revocation include excessive campaign intervention, substantial lobbying, private benefit to insiders, or private inurement.
- For non-extraordinary insider benefits current law often imposes excise taxes rather than revocation.
July 21 Hearing Highlights
- At the July 21 hearing the government argued Harvard was obligated to follow executive orders and that funding contracts allowed cancellation for nonconforming institutions.
- The judge questioned the Title VI connection to scientific research funding and whether procedures like notice and hearings were followed.