Reply to Keep the Poor Students in Poor Schools

Forum Index » Private & Independent Schools

Reply to "Keep the Poor Students in Poor Schools"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Yes[/quote]

FA is given for two reasons: 1) to allow the private schools to maintain their non-profit status . 2) to maintain their high academic standards. There is no free lunch being given; it is a straight quid 
pro quo.[/quote]

Great info here.[/quote]

I'm a tax lawyer, this isn't quite true.  A private school doesn't have to give out any scholarships to maintain its nonprofit status.  To be a nonprofit, you just can't have owners or shareholders that receive profits or dividends, or have excessive business related or profit generating activities.  To be a 501(c)(3) tax-exempt organization where donations (but not tuition) are deductible for donors, private schools are subject to a non-discrimination review by the IRS because so many private schools were created in reaction to desegregation.  You just have to have a non-discriminatory policy that is publicly disseminated and show evidence that the school follows the policy.  Easy ways to prove the school follows the policy to show enrollment of racial minorities and/or hiring of racial minorities as teachers or administrators.  The easiest way to get racial minorities students to enroll, especially in areas where their are not a lot of minorities or where the tuition is very high, is to offer scholarships, but it isn't required.

A school can have 0 minorities as students or staff and still prove non-discrimination and many do, particularly in rural areas.  But if you live in an area where the local population is majority black and you don't have any black students and have rejected most black applicants, you are probably going to have issues under an IRS review.

Most private schools offer FA because it is the right thing to do, not because of IRS rules.  
<pst scjpp;s

Well, thank you to the tax lawyer above for the details on this. I take a more cynical view. Private schools desperately need to maintain their non-profit status for financial reasons and their social equity policy, though some in their admin. may believe and advocate from their hearts, FOLLOWS their financial needs , it does not lead them.What may have been a win/win and a boon to them financially in the initial years after B vs BoE, diversity in return for non-profit status,and all that money it allows them to shelter, quickly wa sjust absorbed into their budget. A budget tey then spent right up to the limit on. Our society as a whole has gotten accustomed to over borrowing and over spending.  This is the teet of the last couple of generations. Private schools : secondary and universities have become addicted to credit and , in some cases, using paper money to make payrol.

The head of Sidwell's Board  in the 1950's was against admitting non-whites because he feared inter-racial dating, and said so, albeit with the board room door closed. These schools did not over night become liberal and righteous. They did, over night , with the help of a good tax lawyer :) realize what a non-profit status could allow them to do financially.
[/quote][/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics