Exceptions Apply
Like many other federal rules and regulations, exceptions apply to the Form 5578. A church-run school or preschool should carefully review these in consultation with legal counsel before determining whether it falls under one of these exceptions:
- The school’s enrollment in the preceding three years consists of at least 75 percent of the sponsoring church or denomination’s membership, and the school publicizes its nondiscriminatory policy through religious periodicals distributed in the community.
- The school enrolls students of racial minority groups in meaningful numbers and follows a racially nondiscriminatory policy.
- The school demonstrates all scholarships and other comparable benefits are offered on a racially nondiscriminatory basis.
