All Hillsdale College leaders want is to be left alone by the government.
That’s why Michigan’s small classical liberal arts college refuses to accept any funding from the state or federal government, even in the form of financial aid.
Hillsdale, my alma mater, is doing this to maintain its independence and escape the constraints of government funding.
But despite its track record of avoiding taxpayer support, some want the private university to bow to federal and state oversight.
A lawsuit filed last year does just that by alleging in part that Hillsdale failed to meet its obligations under Title IX, which prohibits discrimination on the basis of sex at all educational institutions that accept federal aid. I tried to accomplish this.
Confused? More on that later.
Two women who say they were sexually assaulted by male students at Hillsdale College have filed a civil lawsuit against the college. One of the women still attends Hillsdale. The other person transferred to another university.
This month, a federal district judge in Michigan dismissed the case with prejudice, meaning the civil case cannot be brought back to the same court. However, the plaintiffs moved their case to the 6th U.S. Circuit Court of Appeals.
Therefore, the legal dispute is not over yet. And if the plaintiffs prevail, the legal implications for nonprofit organizations across the country could be significant.
Lawsuit claims Hillsdale should be subject to Title IX
Plaintiffs argue that because Hillsdale College enjoys nonprofit status as an educational institution and is therefore exempt from taxes, its “benefits” are a form of federal aid and, therefore, the college is It was argued that it would be subject to Title IX.
This lawsuit is not the first to make such claims. In recent years, lower courts in California and Maryland have ruled that Christian schools in those states are obligated to comply with Title IX because their tax-exempt status equates to federal aid.
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Earlier this year, the U.S. Court of Appeals for the Fourth Circuit reversed a lower court’s decision in the Maryland case.
U.S. District Judge Jane Beckering, who wrote the decision in Hillsdale’s favor, leaned heavily into the appeals court’s argument that the tax exemption did not constitute federal financial aid.
He said the Court of Appeal had held that financial grants in the form of aid or other support were “active grants of funds” and were very different from tax exemptions.
“Furthermore, the Fourth Circuit noted that unlike federal grants, where the funds are ‘transferred,’ tax exemption ‘only allows an organization to retain funds that it would otherwise pay in income taxes,'” Beckering wrote. .
Enable independent institutions to remain independent
This is all a relief for Hillsdale College, and it’s not because the college’s administration isn’t committed to a safe and nurturing campus. they are. They believe there is a fair and thorough system in place to investigate allegations of sexual abuse and misconduct without government oversight.
The lawsuit against Hillsdale comes at a time when the Biden administration is significantly expanding the scope of Title IX regulations, from addressing campus sexual misconduct to defining gender.
The administration’s new Title IX expansion, which took effect in August, has been rejected in more than half of states due to legal challenges to its overreach and fears it could endanger due process, free speech, and the privacy of girls and women. It is on hold.
There’s a good reason Hillsdale doesn’t want anything to do with it.
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But the threat of this lawsuit is bigger than just Title IX. If nonprofits suddenly became subject to government regulation even though they do not accept taxes, it would undermine the independence of thousands of organizations across the country.
Hillsdale General Counsel and Vice President Robert Norton said the university strives to be free from state and federal regulation and is wary of any attempt to open the door to government intrusion. He said he was there.
“We wouldn’t be surprised if there were other regulators or regulators trying to find a way to force Hillsdale College to do what they have in mind,” Norton said.
“We just want to be left alone and let us do what we’ve been doing in a more peaceful way.”
That’s not too much of a question.
Ingrid Jack is a columnist for USA TODAY. Contact us at ijacques@usatoday.com or X (formerly Twitter: @).Ingrid Jacks.