Bob Jones University lost its nonprofit tax exemption after the U.S. Internal Revenue Service in 1976 found that the conservative religious college was practicing racial discrimination with its ban on interracial dating. That decision sparked a long court battle, which ended when the U.S. Supreme Court in 1982 upheld the IRS's decision.
The university in 2000 dropped its dating ban and later apologized for practicing racial discrimination.
Now Bob Jones is set to become a nonprofit institution once again, the Greenville News reported. The complex financial reorganization includes the for-profit merging with the operation of a nonprofit elementary school that shares roots with the university.
The transition is scheduled to be completed by next month. Bob Jones is also seeking regional accreditation with the Southern Association of Colleges and Schools Commission on Colleges.
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