Complaint Says American Medical Association Should End Minority Scholarships or Lose Tax-Exempt Status

A national organization that opposes diversity, equity, and inclusion practices at medical schools is asking the IRS to potentially revoke the tax-exempt status of a nonprofit scholarship program.

The April 8 complaint, submitted by Do No Harm, says the American Medical Association Foundation’s Physicians of Tomorrow program for medical students discriminates against applicants based on race or ethnicity and violates civil rights laws.

The complaint cites a $5,000 award reserved for African American or black applicants; a $10,000 award limited to black, Hispanic, or indigenous applicants; and a $10,000 award for applicants of Eastern European descent.

“Racially discriminatory scholarships are unlawful and morally wrong, to say nothing of the negative impact they have on public confidence in our medical system,” Kurt Miceli, Do No Harm’s chief medical officer, said in a news release.

“The AMA’s obsession with identity politics is no secret, and it should be held accountable for allowing race to dictate applicants’ eligibility for valuable and lucrative learning opportunities. If the AMA Foundation wants to retain its federal tax advantage, it must open its scholarships to applicants of all races.”

The Epoch Times reached out to the American Medical Association Foundation for comment but received no response.

Physicians of Tomorrow, the foundation’s flagship program, provided $420,000 in scholarships last year, according to its annual report. All told, the program has awarded $62 million to medical school students since 1950.

The annual report also said an initiative for increasing physician workplace diversity began in 2025.

Do No Harm’s complaint cites the 2023 U.S. Supreme Court decision prohibiting consideration of race in student higher education admissions. It also notes a 1983 case in which the Supreme Court ruled that Bob Jones University’s tax-exempt status could be revoked because the school discriminated against black applicants who were in inter-racial marriages or relationships.

In the Bob Jones case, the court said the IRS has some discretion to determine whether the nonprofit serves a public purpose that isn’t contrary to established public policy.

Bob Jones University operated as a for-profit school for 34 years before regaining tax-exempt status in 2017.

Without tax-exempt status, donations to the foundation would not be eligible for income tax deductions.

The IRS, according to the federal agency’s website, is responsible for granting the 501(c)(3) status that exempts educational, religious, civic, charitable, and labor organizations from federal income and municipal property taxes. Revenues generated by tax-exempt organizations must go back into funding operations, not shareholders or the institution’s leaders.

If the IRS takes action against an entity based on a submitted complaint, it is required to complete an audit and notify the affected organization before revoking tax-exempt status. An administrative process must be exhausted before the dispute can be brought to a court, according to the IRS website.