Amanda Reed Explores Shifting Public Policies on 501(c)(3) at ABA Fall Tax Meeting

Section 501(c)(3) organizations are increasingly finding Diversity, Equity, and Inclusion (DEI) and other programs purportedly violating the “public policy doctrine” under fire. This doctrine—rooted in a 1971 IRS ruling and reinforced by the landmark Bob Jones University decision—holds that no organization can be exempt under § 501(c)(3) if it engages in activities that are illegal or run counter to established public policy. This panel will explore this evolving legal landscape and the growing tension between politics and nonprofit causes. Panelists will break down the public policy doctrine, walk through historical applications like Bob Jones, assess current legal threats to DEI and other programs, and offer practical guidance for nonprofits navigating this uncertain terrain.