H.R. 1852: IHE Nonprofit Clarity Act

This bill, known as the IHE Nonprofit Clarity Act, aims to clarify the definition of a nonprofit institution of higher education within the context of the Higher Education Act of 1965. Specifically, it proposes the following key changes:

Definition Update

The bill seeks to amend the existing definition of nonprofit institutions of higher education. Currently, the definition may not explicitly recognize certain institutions that are categorized under section 501(c)(3) of the Internal Revenue Code. This section typically includes organizations that are exempt from federal income tax due to their nonprofit status.

Inclusion of 501(c)(3) Institutions

Under the new provision, any institution of higher education that is a nonprofit organization as described in section 501(c)(3) and is exempt from taxation under section 501(a) of the Internal Revenue Code would be formally recognized as a nonprofit institution of higher education for the purposes of the Higher Education Act. This means that such institutions would be eligible for the same considerations and benefits as other recognized nonprofit institutions under this federal law.

Implications

By officially classifying 501(c)(3) institutions as nonprofit institutions of higher education, the bill may influence various aspects related to federal funding, financial aid eligibility, and regulatory compliance for these institutions. The intent is likely to provide clarity and ensure that all qualifying nonprofit educational entities receive the same recognition and support from federal programs.

Summary of Proposed Changes

• Clarifies the definition of nonprofit institutions of higher education in federal law.
• Includes any 501(c)(3) nonprofit organization as a recognized higher education entity.
• Allows for equitable treatment and eligibility for federal benefits.

Relevant Companies

• None found