DEPARTMENT OF EDUCATION OFFICIALLY RECOGNIZES NONPROFIT STATUS OF GRAND CANYON UNIVERSITY

PHOENIX, Dec. 15, 2025

It is also consistent with two major rulings in GCU's favor:

• A unanimous decision by a three-judge panel of the Ninth Circuit Court of Appeals in November 2024 concluding that ED applied an incorrect legal standard in 2019 when it denied GCU's nonprofit designation.
• A four-year IRS audit completed in May 2025 reaffirming the agency's original determination that GCU meets all legal requirements as a 501(c)(3) tax-exempt Arizona nonprofit institution.

Following the Ninth Circuit ruling, a bipartisan group of 10 Arizona Congressional members sent a letter of support urging ED to recognize GCU's historical nonprofit status.

"We are appreciative that officials within the current Department of Education adhered to the recent Ninth Circuit decision in our favor and conducted an objective and thorough review of GCU's operations in determining GCU's nonprofit status under the correct legal standard," said GCU President Brian Mueller. "We look forward to working with the Department in a cooperative manner moving forward and being part of the conversation to address the many challenges facing higher education."

GCU was founded as a nonprofit institution in 1949 and operated as such until 2004 when financial hardships required the university to take on an investor to avoid closing its doors. Gaining access to public capital sparked significant growth over the next decade, and in 2018 GCU lawfully and transparently returned to its historical nonprofit roots.

ED's long-awaited recognition resolves years of confusion created by conflicting classifications. Nonprofit classification is expected to unlock many benefits for students and the institution, including:

• Expanded access to private scholarships restricted to students at nonprofit institutions.
• Increased access to partnerships with school districts, hospitals, donors and organizations previously hesitant due to uncertainty around GCU's status.
• Eligibility for future government relief funds and benefits, which have been disproportionately distributed to nonprofit over for-profit institutions.
• Access to ED-recognized nonprofit-specific grant funding.
• Solidification of GCU's standing as a voting member of NCAA Athletics.
• Significant reduction in legal expenses associated with defending GCU's lawful status, which has cost the university millions of dollars per year.

"This decision removes the cloud of confusion over our nonprofit status and allows us to put our complete focus and resources on our mission to provide affordable, Christian higher education to students from all socioeconomic backgrounds," Mueller said. "We are excited to move forward with clarity and purpose."

About Grand Canyon University:  Grand Canyon University was founded in 1949 and is Arizona's premier private Christian university. GCU is accredited by the Higher Learning Commission and offers 353 academic programs, emphases and certificates for both traditional undergraduate students and working professionals. The University's curriculum emphasizes interaction with classmates, both in-person and online, and individual attention from instructors while fusing academic rigor with Christian values to help students find their purpose and become skilled, caring professionals. For more information, visit gcu.edu

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SOURCE Grand Canyon University