Statement on Tax Exemptions for Private, Nonprofit Educational Institutions
January 12, 1982
This issue of whether to deny tax exemptions to nonprofit, private educational institutions raises
important questions and sensitive policy considerations.
My administration is committed to certain fundamental views which must be considered in
addressing this matter:
-- I am unalterably opposed to racial discrimination in any form. I would not knowingly
contribute to any organization that supports racial discrimination. My record and the record of
this administration are clear on this point.
-- I am also opposed to administrative agencies exercising powers that the Constitution assigns to
the Congress. Such agencies, no matter how well intentioned, cannot be allowed to govern by
administrative fiat. That was the sole basis of the decision announced by the Treasury Department
last Friday. I regret that there has been a misunderstanding of the purpose of the decision.
I believe the right thing to do on this issue is to enact legislation which will prohibit tax
exemptions for organizations that discriminate on the basis of race.
Therefore, I will submit legislation and will work with the Congress to accomplish this