Christian
----- Original Message ----- From: "Timothy Francis-Wright" <twright at ziplink.net> To: <lbo-talk at lists.panix.com> Sent: Wednesday, November 07, 2001 10:51 PM Subject: Re: racist follies at Auburn
> Christian Gregory wrote:
> > Date: Wed, 7 Nov 2001 13:21:45 -0600
> > Subject: Re: racist follies at Auburn
> >
> > If it were just follies. As at many places in the South, the greek
> > system at Auburn is completely segregated. Every time one of my
> > students writes an essay defending how honorable fraternities and
> > sororities are, I always ask them why they don't allow black people
> > in them. They stare blankly and continue to babble about how they
> > honor "diversity." It is classic denegation on a group scale.
> >
>
> Most fraternities have a federal tax exemption under section
> 501(c)(7) as social clubs. Longstanding IRS policy is to treat
> fraternities as social clubs and not as educational institutions
> under section 501(c)(3). The (c)(7) exemption applies only to "exempt
> function income"--the dues paid by members as well as charges for
> goods and services. Other income, including at investment income
> over $1,000 is taxed.
>
> Since 1976, Section 501(i) of the Internal Revenue Code prohibits
> an exempt social club from having a charter, governing instrument, or
> written policy statement providing for discrimination on the basis of
> race, color, or religion. (A 1980 amendment allowed auxiliaries of
> religious organizations and the like to restrict membership based
> on religion in certain circumstances.)
>
> If the racist actions at the Auburn fraternities are in any way
> based on written policies, then they can and should be stripped
> of their tax exemptions.
>
> Tim Francis-Wright