Some info on Bob Jones University.
Bob Jones University v. United States (1983)
Rodeheaver AuditoriumOn January 19, 1976, the Internal Revenue Service notified the University that its tax exemption had been revoked retroactively to December 1, 1970. The school appealed the IRS decision all the way to the U.S. Supreme Court, arguing that the University met all other criteria for tax-exempt status and that the school's racial discrimination was based on sincerely held religious beliefs, that "God intended segregation of the races and that the Scriptures forbid interracial marriage." [95] The University was not challenged about the origin of its interracial dating policy, and the District Court accepted "on the basis of a full evidentiary record" BJU's argument that the rule was a sincerely held religious conviction, a finding affirmed by all subsequent courts.[96] In December 1978, the federal district court ruled in the University's favor; two years later, that decision was overturned by the Fourth Circuit Court of Appeals.
On January 8, 1982, just before the case was to be heard by the U.S. Supreme Court, President Ronald Reagan authorized his Treasury and Justice Departments to ask that the BJU case be dropped and that the previous court decisions be vacated. Political pressure quickly brought the Reagan administration to reverse itself and to ask the Court to reinstate the case. Then, in a virtually unprecedented move, the Court invited William T. Coleman, Jr. to argue the government's position in an amicus curiae brief, thus ensuring that the prosecution's position would be the one the Court wished to hear.[97] The case was heard on October 12, 1982, and on May 24, 1983, the U.S. Supreme Court ruled against Bob Jones University in Bob Jones University v. United States (461 U.S. 574). The University refused to reverse its interracial dating policy and (with difficulty) paid a million dollars in back taxes. Also, in the year following the Court decision, contributions to the University declined by 13 percent.[98]
[edit] Dropping the no-interracial-dating rule (2000)
In 2000, following a media uproar prompted by the visit of presidential candidate George W. Bush to the University, Bob Jones III abruptly dropped the interracial dating rule, announcing the change on CNN's "Larry King Live."[99] Five years later when asked for his view of the rule change, the current president, Stephen Jones, replied, "I've never been more proud of my dad than the night he...lifted that policy."[100]
http://en.wikipedia.org/wiki/Bob_Jones_University#Racial