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Bob Jones III, following a media uproar prompted by the visit of presidential candidate George W.Bush, announced its nullification on Larry King Live.From 1927 to 1933, Bob Jones College was located in Bay County Florida. In 1975, the University Board of Trustees authorized a change in policy to admit black students, but also expanded rules against interracial dating and marriage.However, during the depression, students could not afford to attend college a long distance from home, so in 1933 BJU moved to Cleveland, Tennessee. In 1976, the Internal Revenue Service revoked the university's tax exemption retroactively to December 1, 1970 on grounds that it was practicing racial discrimination.Under pre-1970 IRS regulations, tax exemptions were awarded to private schools regardless of their racial admissions policies, and Bob Jones University was approved for a tax exemption under that policy. The University petitioned for a rehearing in the Appeals Court in Bob Jones University v. The Appeals Court ruled March 21, 1973, stating that Americans United v.
Officially, the IRS revoked the University's tax exempt status on January 19, 1976.
Bush reacted to the political distortions by criticizing the attempts at guilt by association.
He wrote a letter affirming that he is not a religious bigot and sent it to Cardinal John O'Connor of New York.
Racially discriminatory educational institutions cannot be viewed as conferring a public benefit within the above 'charitable' concept or within the congressional intent underlying 501(c)(3)." Because of its interpretation of Biblical principles regarding interracial dating, Bob Jones University completely excluded black applicants until 1971, and from 1971 until 1975, admitted black students only if they were married.
Whatever may be the rationale for such private schools' policies, racial discrimination in education is contrary to public policy.