Grand Canyon University is one step closer to securing a designation as a nonprofit institution after a yearslong legal battle.
GCU became a for-profit in 2004 amid financial troubles, but tried to become a nonprofit again in 2018. The Internal Revenue Service approved the school's 501(c)(3) tax-exempt status, but the U.S. Department of Education didn’t, questioning the GCU’s ties to a publicly traded company.
Now, the 9th Circuit Court of Appeals has ruled that the Education Department exceeded its authority. In a 3-0 decision, the court remanded the case back to the Education Department.
"We are hopeful that the Department will act in good faith and render a quick decision recognizing the university’s nonprofit status," a statement from GCU said.
The private Christian university has more than 20,000 students on its Phoenix campus and more than 90,000 enrolled online.
"Nonprofit status best allows the university to accomplish its goals around research, grant writing, development, being full members of the NCAA, etc.," the statement said.
