Until 1970, the Internal Revenue Service (IRS) granted tax-exempt status to all private schools, regardless of their admissions policies. Section 501(c)(3) of the Internal Revenue Code of 1954 lists organizations that qualify for tax-exempt status and includes those which are charitable, religious, or for educational purposes. But a rise in the prevalence of Christian private schools in the 1960s and the Civil Rights Act of 1964 led the IRS to re-evaluate its policy.
Before 1970, the Internal Revenue Service (IRS) granted tax-exempt status to all private schools, regardless of their admissions policies. Section 501(c)(3) of the Internal Revenue Code of 1954 lists organizations that qualify for tax-exempt status and includes those that are charitable, religious, or educational in nature. However, a rise in Christian private schools during the 1960s and the Civil Rights Act of 1964 prompted the IRS to reconsider its policy.