Harvard in the News: Could Your Nonprofit Face the Same Risk?
Harvard is making headlines, and not for its academics. The university is now facing questions about whether it still qualifies as a nonprofit. Why? Because there’s growing concern it’s stepped outside the boundaries of its tax-exempt purpose.
If Harvard can land in hot water, your nonprofit isn’t immune.
What’s Happening at Harvard?
Right now, Harvard’s nonprofit status is under scrutiny. The issue? Allegations that it’s engaging in activities that may no longer be purely educational—things like political involvement, lobbying, and advocacy.
Here’s the problem: when a nonprofit strays from its original, IRS-approved mission, it risks everything.
Why This Should Matter to You
Most people think losing nonprofit status is rare. But it’s not. The IRS can and does revoke tax-exempt recognition when organizations go off course.
Let’s break it down. If your nonprofit:
- Starts lobbying too much,
- Gets involved in political campaigns, or
- Shifts focus away from its stated purpose (like education, religion, or charity)...
…then you could be on the same path Harvard’s on. And the fallout can be devastating.
The Risks Are Bigger Than You Think
Losing your nonprofit status doesn’t just mean more paperwork. It means financial consequences that can shake your entire operation.
Here’s what’s at stake:
- You’ll owe income taxes—on all revenue, including donations and investment income.
- Property tax exemptions vanish. You could owe thousands—maybe more—on real estate you thought was protected.
- Your supporters lose their tax deduction. That’s a major hit to fundraising.
And if you have an endowment or investments? Think capital gains, dividends, interest—all taxable.
Could You Be at Risk?
It’s easy to drift off course without realizing it. Maybe your mission evolved. Maybe your board approved a new program that doesn’t clearly fit under your exempt category.
Ask yourself:
- Are you tracking your lobbying activities?
- Have you shifted focus without updating your IRS filings?
- Is your educational purpose still front and center?
Even small nonprofits can end up in the IRS’s crosshairs. This isn’t just a “big institution” problem.
Don’t Wait for Trouble to Knock
Here’s what you can do right now:
- Review your bylaws and mission statement.
- Make sure your programs still align with your tax-exempt purpose.
- Keep records of activities, minutes, and spending.
- Talk to a legal professional before launching new initiatives or advocacy efforts.
We Help Nonprofits Stay Compliant—and Protected
If you’re feeling uneasy after hearing about Harvard, that’s a good instinct. This is a wake-up call for every nonprofit.
We work with organizations of all sizes to make sure they stay within IRS guidelines and avoid painful surprises.
Let’s have a conversation about how to protect your nonprofit’s future. Reach out to schedule a confidential consultation today.
Your mission matters. Let’s make sure you don’t lose the status that helps you carry it out.