The Internal Revenue Service is finding that a number of colleges have failed to withhold proper amounts of tax from employees, evaded required payments of unrelated-business income tax, allowed students to avoid paying certain Social Security taxes, and allowed foreign students to avoid tax withholding on most income. (MSE)

Some higher education groups are concerned that the strategies adopted by other groups to counter industry's charges of college abuse of tax-exempt status will further alienate Congress and stimulate new restrictions on the business activities of nonprofit groups. (MSE)

Many campus administrators in Alabama also serve in the state legislature, participating in debates and votes affecting their institutions. The potential for conflicts of interest has damaged state policy on higher education. Some recent incidents are described. (MLW)

Revisions of federal tax law governing the business operations of nonprofit institutions would no longer define a business activity as "related" to the organization's primary mission, and thus tax exempt, solely because it is operated for the convenience of members or students. (MSE)

Incidents in the 1986 election year have called into question the appropriate role of senior administrators and trustees of public universities who want to participate in state political campaigns and the balance of personal rights to involvement with the need to preserve their institutions' independence. (MSE)

A Bowdoin College (Maine) policy banning military recruitment on campus, because the armed forces will not recruit openly gay people, has been dropped because of the introduction of federal legislation cutting off federal research funding to colleges barring military recruitment. (MSE)

A new lobbying strategy by six universities, designed to show Congress that higher education may be willing to give up some tax advantages under current law, is also criticized as a tactical error when Congress is just beginning to consider changes in the tax law affecting nonprofit groups. (MSE)

New federal Department of Education guidelines put responsibility for monitoring campus racial climate on individual colleges. The policy statement contains some elements pleasing to minority students and others attractive to civil libertarians. However, its broad definition of harassment is criticized by some. (MSE)

Many people think of gifts to colleges and universities in pleasant terms, but sometimes things go wrong. When a donor's children sued Princeton University in 2002, development officers, college presidents, and trustees took note. Whoever is right and whoever prevails, the lawsuit illustrates that the feel-good images associated with major gifts…

A federal district judge ruled that state officials failed to demonstrate the need to close Mississippi Valley State University and merge Mississippi University for Women with Mississippi State University to meet desegregation requirements. He ordered Mississippi to provide additional funds to two other black colleges, and approved a state plan…

The Clinton administration has asked the Supreme Court to force Virginia Military Institute, currently all male, to admit women rather than have the state create a similar leadership program for women at another institution. The case parallels litigation in South Carolina involving the Citadel. (MSE)

The Supreme Court's finding that the University of Virginia acted unconstitutionally in denying funds to students for a Christian newspaper not directly affiliated with a church raises new questions about legal issues of church-state separation and the allocation of student fees. Some legal experts feel the ruling could spell the demise of campus…

In a University of Texas-Austin case in which four white applicants to the law school were rejected, a federal judge has upheld the college's right to consider race and ethnicity as admissions factors, but also outlined strict limits on use of affirmative action in assessing applicants, which could pose legal problems for some colleges. (MSE)

The Department of Education, criticized by colleges for its guidelines on investigating racial harassment and hate-speech charges, will issue a new policy on First Amendment implications of such inquiries. A major issue is school responsibility for racial harassment by diverse populations over whom colleges may have little control. (MSE)

The departure of the University of North Carolina's able and powerful president, William P. Friday, has prompted much debate about the structure and governance of the university system and its relationship to the state legislature. (MSE)