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. The IRS announced in 1970 that private schools with racially discriminatory admissions policies would no longer receive tax exemptions. The IRS then notified Bob Jones University of its intention to revoke the University's tax-exempt status because of the University's racially discriminatory admissions policy. As a result, the University would be subject to taxation and its donors would not be able to claim their gifts to the school as charitable deductions.