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Dept. of Education wrongfully denied nonprofit status to Christian university, 9th Circuit rules

Michie

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The U.S. 9th Circuit Court of Appeals has ruled that the U.S. Department of Education unlawfully denied nonprofit status to Grand Canyon University, one of the country's largest Christian higher education institutions.

In a 3-0 decision, the panel instructed the department to revisit GCU's status using the correct legal standard under the Higher Education Act. The department overstepped its authority by using an incorrect standard, the court ruled.

"The Department invoked the wrong legal standards by relying on IRS regulations that impose requirements that go well beyond the HEA's requirement and instead implement a portion of [law] that has no counterpart in the definition of the term 'nonprofit' set forth in HEA," the ruling states.

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