“recent and troubl[ing] trend”
They claim some of these colleges are seeking non-profit status to enrich themselves. You know, like Harvard.
The Daily Caller reports:
Elizabeth Warren And Bernie Sanders Urge IRS To Scrutinize For-Profit Colleges
Democratic Sen. Elizabeth Warren and other senators are urging the IRS to “closely scrutinize” for-profit colleges that are trying to become nonprofit institutions, according to an April letter the senators sent to the government agency.
Warren, of Massachusetts, along with Independent Sen. Bernie Sanders of Vermont, Democratic Sen. Kamala Harris of California, and eight other senators described a “recent and troubl[ing] trend” of for-profit universities attempting to become tax-exempt nonprofit entities to enrich themselves, in the letter obtained by The Daily Caller News Foundation.
The senators cite a Code Section 501(c)(3) provision allowing organizations to exempt themselves from federal income tax if they are “organized and operated exclusively” for educational ends, but forbids private shareholders from reaping the benefits of the organization’s net earnings.
“It is critical that tax-exempt higher education institutions’ income, revenue, and assets do not personally enrich executives, administrators, board members, officers, or other institutional insiders at the expense of the students served,” wrote Warren, Sanders, and the others.
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to the full extent allowed by law.