The United States Supreme Court has held that private schools which practice racial discrimination are not charitable organizations within the meaning of the Internal Revenue Code and thus do not qualify for tax exempt status under section 501(c)(3).
Bob Jones University v. United States, 103 S. Ct. 2017 (1983).
Internal Revenue Code - Statutory Interpretation - Tax Exempt Status,
Duq. L. Rev.
Available at: https://dsc.duq.edu/dlr/vol23/iss2/9