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BJU Press writers also will come under the umbrella of BJU, Inc.The for-profit arm of the university – Bob Jones Education Group, Inc.Most recently, it arose in an exchange before the Supreme Court in the Obergefell vs. After that decision, the IRS commissioner said the agency would not target the tax-exempt status of religious institutions that oppose gay marriage.
At the same time, the university has been seeking regional accreditation through the Southern Association of Colleges and Schools Commission on Colleges.That existing nonprofit was called Bob Jones Elementary School, Inc. The restructuring came after “consultation with legal counsel and accountants with many years of experience in assisting tax exempt organizations—as well as input from members of the BJU community and our congressional delegation,” Pettit said.The change didn’t require IRS approval because its elementary school was already a nonprofit, though the university had formal correspondence and conversations with the IRS, said Randy Page, BJU spokesman.The change levels the playing field between the university and other sister institutions when applying for grants, he said. Department of Education has targeted for-profit colleges with added oversight in recent years and fined several for-profit networks of colleges under the Obama administration, which resulted in colleges like Corinthian College and ITT Technical Institute closing down.It also moves BJU from a for-profit college to a nonprofit classification with the U. Department of Education, “which is frequently perceived more favorably by the public,” Page said. And though the university operates debt-free and doesn’t plan to take on debt, it could potentially save through lower interest rates if it chose to take on debt, Page said.