                             Exclusive Inclusion
                                               Seth C. Oranburg1


Abstract
     Institutions publicly committed to “inclusive” can produce systematic identity-based
exclusion as a structural output. This Essay introduces exclusive inclusion to name this condition:
the governance state in which sel
---
-perpetuating boards, unen
---
orceable 
---
iduciary duties, and
the absence o
---
 stakeholder standing create an accountability void that organized 
---
actions
exploit to exclude dis
---
avored identity groups. The mechanism is architectural, not attitudinal,
and operates across identity categories: Women o
---
 Color in STEM, Black students at liberal
arts colleges, conservative 
---
aculty, Jewish students, and students with disabilities all 
---
ace
exclusion through the same governance 
---
ailures. Drawing on organizational theory and the
author’s prior work on “sovereign charities,” this Essay o
---

---
ers a diagnostic tool, the
disentanglement matrix, to separate protected individual expression 
---
rom institutional identity-
based exclusion. Three structural re
---
orms 
---
ollow: stakeholder standing modeled on corporate
derivative suits, en
---
orceable mission speci
---
icity, and an operational test 
---
or tax exemption
adapted 
---
rom hospital community bene
---
it standards. Because exclusive inclusion is structural,
governance re
---
orm bene
---
its every a
---

---
ected constituency.


I. Introduction
     American universities produce systematic identity-based exclusion through governance
architecture, not despite their commitments to pluralism but because o
---
 governance structures
that make those commitments unen
---
orceable. This Essay names and diagnoses that condition.
Exclusive inclusion is the governance state in which an institution claims to protect all members
while structurally ensuring that some are unprotected, because sel
---
-perpetuating boards,
hollow 
---
iduciary duties, and the absence o
---
 stakeholder standing create an accountability void
that organized 
---
actions can exploit. The phenomenon is not speci
---
ic to any single identity
group. The same governance architecture that enabled the systematic exclusion o
---
 Jewish
students a
---
ter October 7, 2023 has enabled the exclusion o
---
 Women o
---
 Color 
---
rom STEM
departments with 
---
ormal gender equity programs, o
---
 Black students 
---
rom liberal arts colleges
with explicit DEI commitments, and o
---
 conservative 
---
aculty 
---
rom universities claiming
intellectual diversity.2 Governance re
---
orm that addresses the accountability void would bene
---
it
all a
---

---
ected constituencies, because the void is the disease and the exclusion is the symptom.

1
  Pro
---
essor o
---
 Law, University o
---
 New Hampshire Franklin Pierce School o
---
 Law; J.D., University o
---
 Chicago. For
help
---
ul comments and conversations, I thank [names]. All errors are mine.
2
  The cross-identity pattern is theoretically signi
---
icant because it con
---
irms that the mechanism is structural, not
cultural, and practically signi
---
icant because it suggests that governance re
---
orm would bene
---
it all a
---

---
ected
constituencies. See in
---
ra Part I.C (documenting the pattern across 
---
ive identity groups).
2                                                                                               Exclusive Inclusion



    What happened on campuses a
---
ter October 7, 2023 
---
orced an unusually honest set o
---

admissions. University presidents told Congress they could not guarantee the sa
---
ety o
---
 Jewish
students.3 Federal o
---

---
icials launched Title VI investigations into more than sixty institutions.4
Federal en
---
orcement actions extracted nine-
---
igure settlements 
---
rom universities that had,
months earlier, claimed to embody the values o
---
 inclusion and open inquiry.5 National surveys
con
---
irmed what a
---

---
ected students already knew: 57.3% o
---
 Jewish students reported direct
experiences o
---
 antisemitism, 63.4% reported bystander exposure, and most lacked con
---
idence
that their universities would respond.6 Those 
---
indings documented not a cultural 
---
ailing but a
governance indictment. The crisis was real, and the acknowledgments were welcome. But they
were incomplete, because they identi
---
ied the symptom without diagnosing the disease.
    The disease is structural. Encampments, exclusion zones, 
---
aculty boycotts, and the
systematic intimidation o
---
 Jewish students are not governance anomalies. They are governance
outputs: predictable products o
---
 institutional architecture that creates an accountability void
at the center o
---
 university decision-making. At multiple University o
---
 Cali
---
ornia campuses,
departmental units used delegated authority to advance coordinated campaigns that 
---
ueled
exclusion and intimidation o
---
 particular student groups, and the Board o
---
 Regents had no
governance mechanism to intervene. 7 Faculty boycott endorsers held academic leadership
positions at UCLA, UC Berkeley, and UC Santa Cruz, shaping curricula, pedagogy, and
speaker selection through captured governance structures.8 The 
---
ailure runs through the entire
institutional architecture: boards answerable to no one, 
---
iduciary duties with no en
---
orcement
mechanism, mission statements too vague to constrain, and no stakeholder standing to
challenge any o
---
 it.
    Campus antisemitism, however visible, is one mani
---
estation o
---
 a broader structural pattern.
Computer science departments at 
---
our public universities with 
---
ormal gender equity programs
systematically excluded Women o
---
 Color through race-avoidant governance processes that

3
   See Hearing Be
---
ore the H. Comm. on Educ. & the Work
---
orce, 118th Cong. (Dec. 5, 2023) (testimony o
---
 Claudine
Gay, President, Harvard Univ.; Liz Magill, President, Univ. o
---
 Pennsylvania; Sally Kornbluth, President,
Massachusetts Inst. o
---
 Tech.). Magill resigned December 9, 2023; Gay resigned January 2, 2024.
4
   U.S. Dep’t o
---
 Educ., O
---

---
ice 
---
or Civil Rights, Letters to 60 Universities Under Investigation 
---
or Antisemitic
Discrimination and Harassment (2025), https://www.ed.gov/about/news/press-release/us-department-educations-
o
---

---
ice-civil-rights-sends-letters-60-universities-under-investigation-antisemitic-discrimination-and-harassment.
5
   See Settlement Agreement, United States v. Trs. o
---
 Columbia Univ., No. 1:25-cv-______ (S.D.N.Y. Mar. 2025)
(approximately $200 million in combined commitments); Settlement Agreement, United States v. Brown Univ., No.
1:25-cv-______ (D.R.I. 2025) ($50 million over ten years). Columbia separately 
---
aced cancellation o
---
 $400 million in

---
ederal grants and contracts. [CITE NEEDED: Veri
---
y docket numbers 
---
or both settlement agreements when publicly

---
iled.]
6
   Amiya Waldman-Levi, Zahava L. Friedman, Janet Falk-Kessler, Lola Halperin & Lisa Gordon-Handler, Antisemitism
and Daily Occupations, OTJR: Occupation, Participation & Health (2025),
https://doi.org/10.1177/15394492251344525 (reporting 57.3% o
---
 147 surveyed Jewish students experienced
antisemitism directly and 63.4% witnessed it as bystanders, with documented impacts on sa
---
ety, mental health,
and daily academic participation).
7
   AMCHA Initiative, When Faculty Takes Sides: How Academic In
---
rastructure Drives Antisemitism at the University o
---

Cali
---
ornia (2026), https://amchainitiative.org/uc-system-report-pr/.
8
   Id. (documenting 115 boycott endorsers at UCLA including 20 with chairs or leadership roles; 171 at UC Berkeley
including 19 with academic leadership; 55 at UC Santa Cruz including an Associate Campus Provost and 
---
our
residential college provosts; and antisemitic incidents rising as high as 3,000% during the 2023-2025 academic
years at the three examined campuses).
2026-03-15]                                                                                                          3



prioritized gender while erasing race. 9 At a predominantly White liberal arts college with
explicit DEI commitments, a 
---
acially neutral behavioral policy produced systematic racial
inequality through di
---

---
erential en
---
orcement: Black students 
---
aced higher stakes 
---
or violations,
reduced access to in
---
ormal rule-breaking, and intensi
---
ied surveillance.10 Faculty hiring in many
departments operates through in
---
ormal culture and committee discretion that e
---

---
ectively
screens out conservative and libertarian candidates, substituting ideological con
---
ormity 
---
or
open intellectual inquiry.11 In each case, 
---
ormal institutional commitments to pluralism coexist
with governance structures that predictably produce systematic exclusion o
---
 particular identity
groups. The governance architecture that enables systematic exclusion a
---

---
ects multiple identity
groups because the architecture does not discriminate; it simply 
---
ails to constrain.
    Two dominant policy responses have emerged: 
---
ederal coercion and institutional
compliance. Neither has worked. Between April and November 2025, the Trump
administration 
---
roze billions in 
---
ederal 
---
unding and conditioned restoration on sweeping
changes to governance, speech policy, and admissions. 12 Universities capitulated at speed.
Harvard won a judicial victory declaring the 
---
unding 
---
reeze unconstitutional, with the court

---
inding that the administration “used antisemitism as a smokescreen 
---
or a targeted,
ideologically-motivated assault on this country’s premier universities.”13 Yet the governance
void that produced the original crisis persists at Harvard as at every other institution.
Settlement agreements required universities to adopt de
---
initions, appoint liaisons, and conduct
climate surveys.14 Not one settlement required governance re
---
orm. Not one mandated changes
to board composition or selection procedures. Not one created stakeholder standing 
---
or
students to challenge department-level exclusion. The settlements treated exclusive inclusion




9
  Julia Rose Karpicz, Tomoko Nakajima & Justin A. Gutzwa, Challenging Normalized Gendered Racism in
Departmental E
---

---
orts to Broaden Participation in Computer Science, J. Women & Gender Higher Educ. (2024),
https://doi.org/10.1080/26379112.2024.2373479 (conducting narrative analysis o
---
 55 
---
aculty, sta
---

---
, students, and
administrators at 
---
our public universities identi
---
ied as leaders in DEI e
---

---
orts 
---
or computer science).
10
   A.R. Gillis & Elena G. van Stee, The Pact: How a Seemingly Race-Neutral Behavioral Policy Reproduced Racial
Inequality at a Predominantly White Liberal Arts College, Socius (2024),
https://doi.org/10.1177/23780231241286371 (analyzing three waves o
---
 interviews with 30 undergraduates
documenting disparities in social isolation, access to sa
---
e rule-breaking, visibility/surveillance, and stakes o
---

violation).
11
   Joshua Dunn Jr. & Jon A. Shields, Passing on the Right: Conservative Pro
---
essors in the Progressive University
(2016) (interviewing 153 pro
---
essors 
---
rom 84 universities across six disciplines in social sciences and humanities
and 
---
inding conservative pro
---
essors describe themselves as a “stigmatized minority”); Yoel Inbar & Joris Lammers,
Political Diversity in Social and Personality Psychology, 7 Persp. on Psych. Sci. 496 (2012),
https://doi.org/10.2139/ssrn.2002636 (
---
inding only 6% o
---
 social and personality psychologists identi
---
y as
conservative and documenting willingness to penalize conservative colleagues in peer review and hiring).
12
   See U.S. Dep’t o
---
 Educ., O
---

---
ice 
---
or Civil Rights, Notice o
---
 Compliance Review and Intent to Initiate Administrative
Proceedings (Apr. 2025); Exec. Order No. 14,133, Additional Steps to Combat Anti-Semitism, 90 Fed. Reg.
______ (2025). [CITE NEEDED: Veri
---
y Executive Order number and Federal Register citation when published.]
13
   President & Fellows o
---
 Harvard Coll. v. U.S. Dep’t o
---
 Educ., No. 1:25-cv-10807-ADB (D. Mass. July 14, 2025)
(Burroughs, J.) (
---
inding that “none o
---
 the 
---
ederal government’s grant termination letters speci
---
ied how Harvard 
---
ailed
to respond to any acts o
---
 antisemitism in violation o
---
 Title VI” and concluding the administration “used antisemitism
as a smokescreen 
---
or a targeted, ideologically-motivated assault on this country’s premier universities”).
14
   See sources cited supra note 5.
4                                                                                                     Exclusive Inclusion



as a compliance de
---
icit curable by policy adoption. The structural conditions producing
exclusion remain unchanged.15
     In a companion article, I develop the concept o
---
 the “sovereign charity” to explain how
elite private universities came to wield public power without public accountability.16 This Essay
applies that structural analysis to a speci
---
ic governance output: the production o
---
 systematic
identity-based exclusion by institutions whose stated commitments run in precisely the
opposite direction. Existing theories o
---
 discrimination 
---
ocus on individual prejudice or
disparate impact; theories o
---
 organizational hypocrisy address gaps between 
---
ormal policy and
actual practice; institutional isomorphism explains why organizations adopt similar structures.
None explains how institutions with genuine pluralist commitments, sta
---

---
ed by individuals
who sincerely support those commitments, produce systematic exclusion as a structural
output. Exclusive inclusion theory 
---
ills that gap by identi
---
ying governance architecture as the
causal mechanism.17
     This Essay proceeds as 
---
ollows. Part I de
---
ines exclusive inclusion as a structural condition,
documents its operation across 
---
ive identity categories, introduces the disentanglement matrix
as a diagnostic tool, and situates the concept within organizational theory. Part II establishes
the governance void that makes exclusive inclusion possible by summarizing the “sovereign
charity” 
---
ramework and its three architectural 
---
eatures: the sel
---
-perpetuating board, the hollow
duty o
---
 obedience, and the absence o
---
 stakeholder standing. Part III examines the 2025 
---
ederal
interventions as a case study in whether coercion can substitute 
---
or governance re
---
orm, and
concludes it cannot. Part IV proposes three structural re
---
orms, stakeholder standing, mission
speci
---
icity, and operational test re
---
orm, that target each 
---
eature o
---
 the accountability void,
explains how the re
---
orms work as an integrated system, and addresses the strongest objections.


II. Exclusive Inclusion as a Structural Condition
    Exclusive inclusion is not an accident o
---
 bad actors or un
---
ortunate timing. It is the
predictable output o
---
 governance architecture. This Part de
---
ines the concept, distinguishes it

---
rom related theories o
---
 organizational 
---
ailure, documents its operation across 
---
ive identity
categories, and o
---

---
ers the disentanglement matrix as a diagnostic tool.


     A. De
---
ining the Concept
    Stokely Carmichael and Charles V. Hamilton introduced the concept o
---
 structural
discrimination into American political thought in 1967 by distinguishing between individual
prejudice and the “established and respected 
---
orces in the society” that generate inequality


15
   The 
---
ailure o
---
 
---
ederal intervention and policy compliance is not merely disappointing; it is structurally inevitable. No
amount o
---
 
---
ederal pressure or policy re
---
orm can succeed when the governance architecture that produces
exclusive inclusion remains unchanged. See in
---
ra Part III (analyzing the structural limits o
---
 
---
ederal coercion).
16
   Seth C. Oranburg, Sovereign Charities (2025), https://ssrn.com/abstract=5260677.
17
   This theoretical contribution is distinct 
---
rom cultural explanations (which 
---
ocus on attitudes and belie
---
s), legal
compliance explanations (which 
---
ocus on individual violations), and disparate impact theory (which 
---
ocuses on

---
acially neutral policies). See in
---
ra Part I.B (distinguishing exclusive inclusion 
---
rom related concepts).
2026-03-15]                                                                                                       5



without requiring any individual to harbor hostility.18 The breakthrough was analytical: by
shi
---
ting 
---
ocus 
---
rom motive to mechanism, Carmichael and Hamilton made it possible to study
discrimination as an organizational phenomenon. Intent became irrelevant to diagnosis.
Structure became everything.
     Three bodies o
---
 organizational theory converge to identi
---
y the conditions under which
exclusive inclusion occurs. Mark Suchman’s 
---
oundational work on institutional legitimacy
distinguishes between the perception that an organization’s actions are proper and the
structural conditions that sustain or erode that perception.19 Henry Hansmann’s analysis o
---

nonpro
---
it governance identi
---
ies voice and exit as the two mechanisms by which stakeholders
discipline institutional behavior; when both are absent, managerial autonomy becomes
managerial impunity. 20 Elinor Ostrom’s work on commons governance demonstrates that
institutions excluding a
---

---
ected parties 
---
rom decision-making processes tend to produce
outcomes serving insiders at the expense o
---
 outsiders.21 Together, these 
---
rameworks identi
---
y
a condition that has no established name in organizational law. This Essay proposes one.
    Exclusive inclusion is the condition in which an organization’s governance structures
systematically 
---
ail to protect certain members 
---
rom identity-based exclusion, while protecting
other members 
---
rom comparable harms, because o
---
 structural 
---
eatures o
---
 the organization
rather than the prejudice o
---
 any individual decision-maker. The 
---
ailure is predictable 
---
rom the
governance architecture: where sel
---
-perpetuating boards eliminate electoral accountability,
unen
---
orceable 
---
iduciary duties eliminate legal accountability, and the absence o
---
 stakeholder
standing eliminates a
---

---
ected-party accountability, the resulting void makes systematic
exclusion structurally likely and, when it occurs, structurally di
---

---
icult to remedy.
    Four elements warrant emphasis, and a 
---
i
---
th clari
---
ication is necessary.


         1. Predictability
    Exclusive inclusion 
---
ollows 
---
rom 
---
eatures o
---
 institutional design, not 
---
rom bad luck or
unusually bad actors. When a university’s board is sel
---
-perpetuating, its mission is vague, its

---
iduciary duties are unen
---
orceable, and no stakeholder has standing to challenge governance
decisions, the institution is structurally vulnerable to capture by whichever 
---
action is most
organized.22 The capturing 
---
action need not be hostile in the conventional sense. It needs only
to be indi
---

---
erent to the exclusion o
---
 a particular group, or willing to tolerate it as an acceptable
cost o
---
 pursuing other goals. Indi
---

---
erence, in a governance void, is su
---

---
icient. The existence o
---

antisemitism “hotspots” on some campuses but not others con
---
irms the structural diagnosis:

18
   Stokely Carmichael & Charles V. Hamilton, Black Power: The Politics o
---
 Liberation in America 4 (1967).
19
   Mark C. Suchman, Managing Legitimacy: Strategic and Institutional Approaches, 20 Acad. Mgmt. Rev. 571,
574-77 (1995) (distinguishing pragmatic, moral, and cognitive 
---
orms o
---
 organizational legitimacy).
20
   Henry B. Hansmann, The Role o
---
 Nonpro
---
it Enterprise, 89 Yale L.J. 835, 849-52 (1980) (identi
---
ying the
“nondistribution constraint” and analyzing voice and exit as stakeholder discipline mechanisms in nonpro
---
it
organizations).
21
   Elinor Ostrom, Governing the Commons: The Evolution o
---
 Institutions 
---
or Collective Action 90-102 (1990)
(demonstrating through empirical analysis o
---
 long-enduring commons that institutions excluding a
---

---
ected parties

---
rom decision-making produce outcomes serving insiders at the expense o
---
 outsiders).
22
   This analysis draws on the agency-costs 
---
ramework developed in my companion article on university
governance. See Seth C. Oranburg, University Disentanglement (2024), https://ssrn.com/abstract=4997569.
6                                                                                                 Exclusive Inclusion



institutions with similar 
---
ormal commitments to pluralism produce dramatically di
---

---
erent
outcomes 
---
or Jewish students depending on their governance architecture.23 This variation is
inconsistent with explanations attributing campus antisemitism primarily to external political

---
orces or generational attitudes, and consistent with the hypothesis that governance structures
determine whether institutions can prevent or remedy identity-based exclusion.


         2. Asymmetry
    Exclusive inclusion involves what I have elsewhere called “inclusion asymmetry”: the
selective application o
---
 institutional protection such that some groups receive robust support
while others are le
---
t procedurally exposed. 24 Universities maintain o
---

---
ices, programs, and
en
---
orcement mechanisms dedicated to racial equity, gender inclusion, LGBTQ+ advocacy,
and disability access. These are appropriate institutional commitments. But when the same
university treats identity-based exclusion o
---
 one group as a civil rights matter and identical
exclusion o
---
 another group as political expression, the asymmetry is not incidental. It is the
operative institutional policy, whether or not anyone chose it deliberately.25 The asymmetry
determines which harms count as civil rights violations warranting institutional en
---
orcement
and which are re
---
ramed as political disagreements 
---
alling outside the scope o
---
 university civil
rights in
---
rastructure.


         3. Mechanism
    Exclusive inclusion operates through a two-step process. First, the absence o
---
 external
accountability (no stakeholder standing), internal accountability (unen
---
orceable 
---
iduciary
duties), and electoral accountability (sel
---
-perpetuating boards) creates an opportunity 
---
or
organized 
---
actions to capture governance structures. Capture occurs when a 
---
action gains
control over decision-making in a particular domain, a DEI committee, a hiring committee, a
student conduct o
---

---
ice, without e
---

---
ective oversight or constraint. 26 Second, once a 
---
action
captures governance, it can implement policies that systematically exclude identity groups the

---
action dis
---
avors while claiming to advance the institution’s 
---
ormal commitments. The
governance architecture cannot distinguish legitimate policy implementation 
---
rom identity-
based exclusion because there is no mechanism 
---
or a
---

---
ected parties to challenge decisions, no
en
---
orceable standard against which to measure decisions, and no external body with authority
to review decisions. Each individual decision may appear de
---
ensible in isolation, but the

23
   See GW Wright, S. Volodarsky, S. Hecht & L. Saxe, In the Shadow o
---
 War: Hotspots o
---
 Antisemitism on US
College Campuses (2024) (mapping geographic and institutional variation in antisemitism and identi
---
ying campuses
where Jewish students report particularly elevated rates o
---
 antisemitic incidents and institutional non-response).
24
   Oranburg, University Disentanglement, supra note 22.
25
   The asymmetry is not merely a matter o
---
 resource allocation but o
---
 institutional recognition o
---
 which harms count
as civil rights violations and which are re
---
ramed as political disagreements. This distinction determines whether
institutional en
---
orcement mechanisms are activated or whether a
---

---
ected students are told their concerns are outside
the scope o
---
 university civil rights in
---
rastructure.
26
   These three conditions, capture, absence o
---
 recourse, and selective en
---
orcement, are individually insu
---

---
icient but
jointly su
---

---
icient to produce exclusive inclusion. An institution with two o
---
 the three conditions may produce episodic
exclusion; an institution with all three produces systematic exclusion as a structural output.
2026-03-15]                                                                                                           7



aggregate e
---

---
ect is systematic exclusion that no single actor can be held accountable 
---
or
producing.27


          4. Systematicity
    Exclusive inclusion produces systematic exclusion, meaning it is not sporadic or isolated but
patterned, persistent, and predictable 
---
rom the governance architecture. Systematic exclusion
a
---

---
ects multiple individuals within an identity group, persists over time despite complaints or
policy changes, 
---
ollows predictable patterns, survives leadership changes, and coexists with

---
ormal institutional commitments to inclusion. 28 Sporadic exclusion, by contrast, involves
isolated incidents addressed through existing mechanisms, does not 
---
ollow identity-group
patterns, and is remedied when brought to institutional attention. The distinction matters
because sporadic exclusion can be addressed through policy compliance; systematic exclusion
requires structural re
---
orm.


          5. Relationship to Cultural Factors
    The governance analysis does not require determining whether individual actors harbor
cultural animus, ideological commitments, or simple indi
---

---
erence. Many participants in the
documented cases believed they were advancing legitimate institutional goals or expressing
de
---
ensible political views. Whether they harbored hostility, ideological commitment, or
indi
---

---
erence toward particular groups, the governance structure enabled systematic exclusion
and a
---

---
orded the excluded group no recourse.29 Cultural 
---
actors may contribute to campus
climates and individual incidents, but the governance thesis is additive, not substitutive:
structural 
---
eatures are su
---

---
icient to produce systematic exclusion even where cultural 
---
actors
are ambiguous, contested, or absent, and structural re
---
orm is necessary regardless o
---
 cultural
context.30




27
   This is the structural mechanism that produces what I call “laundering” o
---
 exclusion: each individual decision
appears de
---
ensible, but the aggregate e
---

---
ect is systematic exclusion that no single actor can be held accountable

---
or producing. See in
---
ra Part I.D (developing the disentanglement matrix).
28
   The distinction between systematic and sporadic exclusion has practical signi
---
icance 
---
or remedy selection. Policy
compliance can address sporadic exclusion by correcting speci
---
ic incidents. Systematic exclusion requires
structural re
---
orm because it persists across changes in leadership, culture, and policy.
29
   The governance analysis is agnostic on motivation precisely because governance structures determine outcomes
regardless o
---
 individual intent. This is the central insight o
---
 organizational theory applied to civil rights: structure
shapes behavior more reliably than culture or individual attitudes.
30
   This additive 
---
raming distinguishes the governance thesis 
---
rom both cultural explanations (which 
---
ocus on
attitudes and belie
---
s) and legal compliance explanations (which 
---
ocus on individual violations). The governance
thesis is that structural 
---
eatures are su
---

---
icient to produce systematic exclusion and that structural re
---
orm is
necessary to address it.
8                                                                                             Exclusive Inclusion



    B. Distinguishing Exclusive Inclusion 
---
rom Related
       Concepts
     Exclusive inclusion theory di
---

---
ers 
---
rom 
---
our related 
---
rameworks, and the distinctions carry
practical implications 
---
or re
---
orm.
     Unlike traditional discrimination theory, which traces exclusion to individual prejudice or
intentional institutional policy, exclusive inclusion operates through governance structure
without requiring any individual to harbor hostility. The mechanism is architectural, not
attitudinal.
     Unlike disparate impact doctrine, which identi
---
ies 
---
acially neutral policies that produce
discriminatory e
---

---
ects, exclusive inclusion involves 
---
ormal commitments to inclusion that
governance architecture 
---
ails to en
---
orce. The problem is not a neutral policy with
discriminatory e
---

---
ects but an a
---

---
irmative commitment to pluralism that the governance
structure cannot vindicate.31
     Unlike organizational hypocrisy as described by Nils Brunsson, which addresses the gap
between what organizations say and what they do, exclusive inclusion is not merely symbolic
adoption o
---
 policies that leadership has no intention o
---
 en
---
orcing. The problem is structural
inability to en
---
orce, not unwillingness. Many university leaders genuinely want to 
---
ul
---
ill their
pluralist commitments but lack governance mechanisms to prevent 
---
actional capture o
---

delegated authority.32
     Unlike institutional isomorphism as described by DiMaggio and Powell, which explains why
organizations adopt similar structures under normative and coercive pressures, exclusive
inclusion explains why those adopted structures 
---
ail to produce their stated objectives.
Isomorphism explains why every university has a DEI o
---

---
ice; exclusive inclusion explains why
those o
---

---
ices cannot prevent systematic exclusion.33
     The practical implication is that re
---
orms targeting individual prejudice, disparate impact,
organizational hypocrisy, or isomorphic adoption will not remedy exclusive inclusion, because
none addresses the governance architecture that produces it. Only structural re
---
orm, changing
the accountability void itsel
---
, can make exclusive inclusion less likely.


    C. The Pattern Across Identity Groups
    Scholars have not applied Carmichael and Hamilton’s analytical shi
---
t with equal rigor
across identity groups or institutional contexts. But the pattern is present. Five documented
cases illustrate how the same governance architecture produces exclusive inclusion across
di
---

---
erent constituencies.

31
   C
---
. Griggs v. Duke Power Co., 401 U.S. 424 (1971) (establishing the disparate impact 
---
ramework); Guardians
Ass’n v. Civil Serv. Comm’n, 463 U.S. 582 (1983) (applying disparate impact analysis under Title VI).
32
   See Nils Brunsson, The Organization o
---
 Hypocrisy: Talk, Decisions and Actions in Organizations (2d ed. 2002)
(distinguishing between organizational talk, decisions, and actions and explaining why organizations routinely
produce inconsistencies among the three).
33
   See Paul J. DiMaggio & Walter W. Powell, The Iron Cage Revisited: Institutional Isomorphism and Collective
Rationality in Organizational Fields, 48 Am. Soc. Rev. 147 (1983) (explaining coercive, mimetic, and normative
isomorphism).
2026-03-15]                                                                                                       9



         1. Jewish Students A
---
ter October 7
    Survey research documents that Jewish university members experienced sharp increases
in exposure to hate and signi
---
icant declines in daily com
---
ort immediately 
---
ollowing October 7,
2023.34 The speed and scale o
---
 the deterioration are inconsistent with the hypothesis that
universities simply needed time to develop appropriate responses to a novel situation. Instead,
the temporal pattern suggests that governance structures lacked the capacity to protect Jewish
students 
---
rom predictable consequences o
---
 a major geopolitical event, revealing accountability
voids that existed be
---
ore October 7 but became visible only when tested.
    Faculty 
---
or Justice in Palestine chapters that emerged a
---
ter October 7 used departmental
authority over hiring, curriculum, and programming to advance anti-normalization campaigns
requiring institutional severance o
---
 ties with Israeli universities.35 At UCLA, 115 academic
boycott endorsers included 20 with chairs or leadership roles. At UC Berkeley, 171 endorsers
included 19 with academic leadership positions. At UC Santa Cruz, 55 endorsers included an
Associate Campus Provost and 
---
our residential college provosts.36 When Jewish colleagues
objected, de
---
enders cast their response as individual political expression. But the act was
institutional: departments deployed resources through o
---

---
icial channels with the imprimatur
o
---
 
---
aculty governance. The operation was identity-based: the policy excluded Israeli scholars
by nationality and Jewish scholars by their a
---

---
iliations, regardless o
---
 any individual’s views on
any contested question.


         2. Women o
---
 Color in STEM Departments
     At 
---
our public universities recognized as leaders in DEI e
---

---
orts 
---
or computer science,
researchers documented what they term “race-avoidant processes” within departmental
governance structures.37 Departmental DEI leadership and programming prioritized gender
while systematically avoiding race, producing a speci
---
ic governance mechanism: institutional
DEI roles and departmental governance that narrowly de
---
ine diversity operate as structural

---
ilters, protecting 
---
ormal gender equity language while excluding Women o
---
 Color.38 Recent
scholarship on diversity initiatives provides a theoretical 
---
ramework: 
---
ormal programs can
center dominant epistemic norms rather than remedy structural barriers, creating what
scholars term “tokenizing inclusion” that leaves racialized power dynamics undisturbed. 39
Comprehensive reviews o
---
 DEI implementations across higher education institutions con
---
irm



34
   Mateus Rennó Santos & Dikla Yogev, How October 7th Changed Fear and Exposure to Hate (Preprint 2024),
https://doi.org/10.31235/os
---
.io/q
---
aj3 (documenting temporal increases in exposure to hate and declines in daily
com
---
ort among Jewish university members a
---
ter October 7, 2023).
35
   AMCHA Initiative, supra note 7.
36
   Id.
37
   Karpicz et al., supra note 9.
38
   Id.
39
   Mvikeli Ncube, The Paradox o
---
 Diversity Initiatives: Structural Disadvantages 
---
or Global South Scholars in
Academia (2025), https://doi.org/10.64074/
---
tgs9y42 (identi
---
ying epistemic centrism and tokenizing inclusion as
mechanisms by which 
---
ormal diversity programs reproduce rather than remedy exclusion).
10                                                                                                  Exclusive Inclusion



that these 
---
ailures are systematic rather than isolated, consistently disadvantaging the same
constituencies while bene
---
iting others.40


          3. Black Students at Liberal Arts Colleges
     At a predominantly White liberal arts college with explicit DEI commitments, researchers
studied a campus behavioral pact and documented systematic racial inequality through
di
---

---
erential en
---
orcement.41 Black students 
---
aced higher stakes 
---
or violations, reduced access to
in
---
ormal rule-breaking, and intensi
---
ied surveillance: outcomes produced by institutional
characteristics and governance priorities rather than individual prejudice. 42 Comparative
analysis o
---
 university board minutes at two institutions reveals that governing boards reasoning

---
rom reputational and institutional-interest 
---
rames structurally 
---
oreclose equitable remedies 
---
or
students o
---
 color, making 
---
ormal DEI commitments contingent on institutional optics rather
than substantive protection.43 Empirical research on pre-medical education at a small liberal
arts college documents how race, socioeconomic status, and gender shape competitive
dynamics and resource access within departments, illustrating how governance structures that

---
ail to extend accountability to the departmental level enable exclusion despite 
---
ormal
institutional commitments.44


          4. Conservative and Libertarian Faculty
    Empirical research on legal academia documents signi
---
icant underrepresentation o
---

conservative and libertarian scholars and identi
---
ies selection processes consistent with
ideological bias in hiring. 45 The study tests multiple hypotheses, including sel
---
-selection,
di
---

---
erential quali
---
ication, and discrimination, and 
---
inds evidence supporting the discrimination
hypothesis: hiring committees systematically screen candidates based on ideological
orientation. Departments’ emphasis on “
---
it” and networked recommendation channels


40
   See Elsbeth K. Paige-Je
---

---
ers & Ruth A.H. Lahti, Interrupting Inequity Within the Higher Education System, in
Advances in Religious and Cultural Studies (2023) (analyzing persistent exclusionary practices across institutional
strata and documenting pit
---
alls o
---
 DEIB implementations); see also C.S. Wei, C.G. Janke & M. Pervez, Diversity,
Equity, and Inclusion (DEI) in Higher Education: A Systematic Review, J. Educ. & Soc. Pol’y (2023) (summarizing
challenges in implementing DEI across institutions and highlighting gaps between 
---
ormal policies and everyday
experiences). [CITE NEEDED: Veri
---
y Wei et al. journal volume and page numbers.]
41
   Gillis & van Stee, supra note 10.
42
   Id.
43
   K. Cho & Natacha Cesar-Davis, Governance Boards and Student Activism: Responding to Racism, 12 Educ.
Sci. 939, 944-47 (2022), https://doi.org/10.3390/educsci12120939 (analyzing university board minutes at two
institutions and 
---
inding that governing boards reasoning 
---
rom reputational and institutional-interest 
---
rames structurally

---
oreclose equitable remedies 
---
or students o
---
 color).
44
   Amanda B. Deming, How Race, Socioeconomic Status, and Gender Shape Feelings o
---
 Competition within the
Pre-Med Department at a Small Liberal Arts College (B.A. thesis, Middlebury Coll. 2020) (documenting how
departmental cultures at small institutions produce exclusionary competition and barriers 
---
or underrepresented
students). [CITE NEEDED: Veri
---
y degree-granting institution.]
45
   JC Phillips, Why Are There So Few Conservatives and Libertarians in Legal Academia: An Empirical Exploration o
---

Three Hypotheses (2014) (testing sel
---
-selection, di
---

---
erential quali
---
ication, and discrimination hypotheses and 
---
inding
evidence supporting the discrimination hypothesis).
2026-03-15]                                                                                                     11




---
unctions as a structural gatekeeping device that substitutes ideological con
---
ormity 
---
or open
intellectual inquiry.46
    Survey evidence 
---
rom social and personality psychology con
---
irms that evaluative
gatekeepers report willingness to penalize openly conservative colleagues in peer review and
hiring, with only 6% o
---
 social and personality psychologists identi
---
ying as conservative.47 A
nationwide 
---
aculty survey documents pervasive sel
---
-censorship among politically minority

---
aculty: 35% reported toning down written work 
---
rom 
---
ear o
---
 controversy, compared to 9%
during McCarthyism, and 47% o
---
 conservative 
---
aculty sel
---
-censor compared to 19% o
---
 liberal

---
aculty. 48 Where institutions apply policies vaguely or selectively, minority-view 
---
aculty
disproportionately report 
---
ear o
---
 retaliation, demonstrating that governance structures, not
only culture, produce predictable chilling e
---

---
ects.


         5. Students with Disabilities
    Legal compliance o
---

---
icers and paper policies cannot by themselves ensure inclusion 
---
or
students with disabilities. When operational units retain discretion and administrators en
---
orce
rules weakly, ADA-era commitments become procedural shells that systematically exclude
students with disabilities, illustrating how principal-agent breakdowns convert 
---
ormal legal
obligations into hollow governance structures. 49 Accommodation systems that centralize
medical veri
---
ication and grant discretionary power to procedural adjudicators create durable
exclusionary bottlenecks, trans
---
orming legal entitlements into contingent privileges.50 Students
with disabilities 
---
ace systematic exclusion not through individual prejudice but through
governance architecture that makes accommodation a discretionary bene
---
it rather than an
en
---
orceable right.


         6. The Common Structural Pattern
    The pattern is consistent across all 
---
ive cases. Formal institutional commitments to
inclusion coexist with governance structures, captured DEI in
---
rastructure, selective
en
---
orcement, procedural gatekeeping, in
---
ormal hiring screens, and board reputational
priorities, that predictably produce systematic exclusion o
---
 particular identity groups. This
cross-identity pattern is theoretically signi
---
icant because it con
---
irms that the mechanism is
structural, not cultural: i
---
 the problem were cultural hostility toward a particular group, we

46
   Dunn & Shields, supra note 11, at 87-139.
47
   Inbar & Lammers, supra note 11.
48
   Nathan Honeycutt, Silence in the Classroom: The 2024 FIRE Faculty Survey Report, OSF (2024),
https://doi.org/10.31234/os
---
.io/7xr4z (surveying 6,269 
---
aculty at 55 
---
our-year institutions and 
---
inding 35% toned
down written work 
---
rom 
---
ear o
---
 controversy compared to 9% during McCarthyism, with 47% o
---
 conservative 
---
aculty
sel
---
-censoring compared to 19% o
---
 liberal 
---
aculty).
49
   Barry Kelly, Disabilities Legislation Implementation in American Universities, 18 J. Higher Educ. Pol’y & Mgmt.
189, 195-201 (1996), https://doi.org/10.1080/1360080960180207.
50
   Tara Dylann Roslin, Vitriolic Veri
---
ication: Accommodations, Overbroad Medical Record Requests, and Procedural
Ableism in Higher Education, 48 Am. J.L. & Med. 507, 520-36 (2022), https://doi.org/10.1017/amj.2022.32
(documenting how accommodation systems centralize medical veri
---
ication and grant discretionary power to
procedural adjudicators, creating durable exclusionary bottlenecks).
12                                                                                                 Exclusive Inclusion



would not expect the same governance 
---
ailures to a
---

---
ect Jewish students, Women o
---
 Color,
Black students, conservative 
---
aculty, and students with disabilities simultaneously. The pattern
is also practically signi
---
icant because it means governance re
---
orm bene
---
its all a
---

---
ected
constituencies. Fixing the structure is not a zero-sum con
---
lict among identity groups. It is a
shared governance problem with a shared structural solution.


     D. The Disentanglement Matrix
    I
---
 exclusive inclusion is a governance phenomenon rather than an aggregation o
---

individual acts, practitioners and policymakers need a tool 
---
or identi
---
ying it. University
controversies involving speech, identity, and institutional authority do not arrive pre-sorted.
Academic 
---
reedom claims, political expression claims, and civil rights claims all run together,
and the actors deploying each set o
---
 claims have strong incentives to 
---
rame their conduct in
the most protected available category. Practitioners need a 
---
ramework that cuts through the

---
raming to the underlying structure o
---
 the act.
    The disentanglement matrix sorts these cases along two axes. 51 The 
---
irst asks who is
acting: an individual exercising personal judgment, or an institution deploying organizational
authority, resources, or o
---

---
icial channels. The second asks what is targeted: a perspective (a
political viewpoint, policy position, or ideological commitment) or an identity (a people,
ethnicity, national origin, or religious group).

                                   Perspective-Based                              Identity-Based
     Individual Actor              Protected Expression                           Personal Discrimination
     Institutional Actor           Governance Question                            Exclusive Inclusion
     Table 1. The Disentanglement Matrix.

    Top-Le
---
t: Individual/Perspective = Protected Expression. A pro
---
essor who declines
to collaborate with a colleague over a disagreement about 
---
oreign policy exercises academic

---
reedom. A student who re
---
uses to join a study group because o
---
 its political positions makes
a personal choice. These acts may be distaste
---
ul. No governance re
---
orm reaches them.
    Top-Right: Individual/Identity = Personal Discrimination. A pro
---
essor who re
---
uses
to supervise any student identi
---
ying with a particular religious or ethnic group engages in
personal discrimination, already prohibited by Title VI. 52 The problem in this quadrant is
en
---
orcement capacity, not de
---
initional clarity.
    Bottom-Le
---
t: Institutional/Perspective = Governance Question. When a university
divests 
---
rom particular investments through proper board channels, or when a 
---
aculty senate
passes a resolution criticizing a 
---
oreign government’s policy, the action deploys institutional
authority in service o
---
 a political perspective.53 Whether universities should take such positions

51
   The disentanglement matrix is developed more 
---
ully in my companion article. See Oranburg, University
Disentanglement, supra note 22.
52
   42 U.S.C. § 2000d (2018); 34 C.F.R. § 100 (2025).
53
   Whether universities should take institutional positions on contested political questions is itsel
---
 contested.
Compare Robert Post, The Classic First Amendment Tradition Under Stress: Freedom o
---
 Speech and the
University, 2 J. Free Speech L. 1 (2022) (de
---
ending institutional neutrality), with Erwin Chemerinsky & Howard
2026-03-15]                                                                                                          13



is contested. The Kalven Committee’s 1967 report provides the 
---
oundational articulation o
---

institutional neutrality: a university should not, “as an institution, in the name o
---
 the university,
take collective action on the issues o
---
 the day.”54 That principle speaks directly to this quadrant,
and the proper objection to institutional political action sounds in institutional neutrality. But
when an institution deploys its authority against an identity group, the bottom-right quadrant,
the objection sounds in civil rights, not neutrality. De
---
enders o
---
 exclusive inclusion invoke
Kalven in reverse, claiming that the university should remain neutral about exclusion when in

---
act the institution has already abandoned neutrality by permitting its governance structures to
serve identity-based purposes. The matrix exposes this inversion by 
---
orcing the threshold
question o
---
 whether institutional authority has been deployed, and i
---
 so, whether its target is a
perspective or an identity.
    Bottom-Right: Institutional/Identity = Exclusive Inclusion. When a department
uses its authority over programming and curriculum to advance a campaign that systematically
excludes scholars and students based on national origin or religious a
---

---
iliation; when a
university’s civil rights in
---
rastructure extends resources to every marginalized group except
one; when campus 
---
acilities become exclusion zones 
---
rom which certain students are physically
barred, the institution deploys its authority against an identity group.55 The governance void
makes this possible. Governance re
---
orm is the remedy.
    The matrix’s critical analytical move involves what it exposes as a jurisdictional retreat. An
act o
---
 exclusive inclusion sits in the bottom-right quadrant: an institution deploys its authority
to exclude on the basis o
---
 identity. When challenged, the actors retreat to the top-le
---
t quadrant,
claiming the protection o
---
 individual academic 
---
reedom and political expression. The
institutional character o
---
 the act disappears. The identity-based e
---

---
ect disappears. The
de
---
ender’s 
---
raming reduces the act to protected individual speech.
    The academic boycott illustrates the retreat concretely. Faculty 
---
or Justice in Palestine
chapters used departmental authority over hiring, curriculum, and programming to advance
anti-normalization campaigns requiring institutional severance o
---
 ties with Israeli universities.
When Jewish colleagues objected, de
---
enders cast the response in top-le
---
t terms: the
department was merely expressing the political views o
---
 its members through shared
governance. But the act sat in the bottom-right quadrant. The act was institutional: the
department deployed its resources through o
---

---
icial channels with the imprimatur o
---
 
---
aculty
governance. The operation was identity-based: the policy excluded Israeli scholars by
nationality and Jewish scholars by their a
---

---
iliations, regardless o
---
 any individual’s views on any
contested question. The boycott resolution did not ask whether a particular collaborator


Gillman, Free Speech on Campus (2017) (arguing universities should protect open debate while maintaining
institutional commitment to inclusive learning environments).
54
   Kalven Comm., Univ. o
---
 Chi., Report on the University’s Role in Political and Social Action 1 (1967),
https://provost.uchicago.edu/sites/de
---
ault/
---
iles/documents/reports/KalsurvenReport.pd
---
 (articulating the

---
oundational case 
---
or institutional neutrality on political controversies). Many universities have adopted or endorsed
the Kalven Report’s principles. See generally Geo
---

---
rey R. Stone et al., Report o
---
 the Committee on Freedom o
---

Expression (Univ. o
---
 Chi. 2015) (rea
---

---
irming and extending the Kalven Report’s 
---
ramework).
55
   The distinction between institutional action and individual expression is not always clear at the boundary, but the
core cases are straight
---
orward. When a department votes as a department, uses departmental resources, and
speaks in the department’s name, it is institutional action.
14                                                                                              Exclusive Inclusion



supported any speci
---
ic policy. It excluded categorically. Institutional means accomplished
identity-based targeting, and the academic 
---
reedom o
---
 individual pro
---
essors, however robust,
does not shelter institutional discrimination.56
     The matrix makes the retreat visible. It 
---
orces the threshold question: did the institution
take this act through institutional channels, using institutional authority and resources? I
---
 so,
it is institutional action, and the academic-
---
reedom de
---
ense belongs to individual 
---
aculty
members, not to the department.57 A department cannot hide behind the pro
---
essor’s First
Amendment rights any more than a corporation can hide behind an employee’s right to speak.
Institutional action has its own accountability 
---
ramework, one that under current law has no
en
---
orcement mechanism. That is the governance void the matrix is designed to expose.
     A note on the line between perspective and identity. The matrix does not claim that
opposition to particular government policies and hostility toward particular identity groups are
identical. Many people hold critical views o
---
 various governments’ policies without harboring
animus toward people o
---
 particular nationalities or religions, and this Essay does not contest
that. The matrix does not ask about belie
---
. It asks about operational e
---

---
ect.58 The operational
test is disproportionate impact, not per
---
ect sorting. When an institutional boycott o
---

universities in a particular country excludes 90% o
---
 nationals 
---
rom that country, the identity-
based character predominates. Courts applying Title VI use similar reasoning when assessing

---
acially neutral policies with disparate impact.59


     E. Second-Order Diversity and Institutional Design
    The disentanglement matrix identi
---
ies exclusive inclusion at the point o
---
 institutional
action, but it does not explain the mechanism by which disaggregated governance produces
the aggregate pattern. Heather Gerken’s work on second-order diversity 
---
ills that gap. Gerken
demonstrates that disaggregated institutional design, multiple departments, committees, or
governance units, can institutionalize exclusion through aggregation rules, control-in
---
luence
tradeo
---

---
s, and cycling e
---

---
ects that concentrate protection 
---
or some groups while leaving others
vulnerable.60 Formal pluralist commitments at the institutional level do not guarantee plural
outcomes when subunit governance structures lack accountability mechanisms.61
    The second-order diversity 
---
ramework adds analytical precision to the exclusive inclusion
diagnosis by explaining how disaggregated governance produces systematic exclusion. When a
university delegates authority to departments, each department may adopt policies that appear

56
   The academic 
---
reedom de
---
ense is available to individual 
---
aculty members but not to departments or institutions.
See generally Judith Areen, Government as Educator: A New Understanding o
---
 First Amendment Protection o
---

Academic Freedom and Governance, 97 Geo. L.J. 945 (2009).
57
   Id.
58
   The operational test is consistent with disparate impact doctrine under Title VI, which asks whether a 
---
acially
neutral policy produces discriminatory e
---

---
ects, not whether the policy was motivated by discriminatory intent. See
Guardians Ass’n v. Civil Serv. Comm’n, 463 U.S. 582 (1983).
59
   See Griggs v. Duke Power Co., 401 U.S. 424 (1971) (establishing disparate impact 
---
ramework); Elston v.
Talladega Cnty. Bd. o
---
 Educ., 997 F.2d 1394 (11th Cir. 1993) (applying disparate impact analysis in education
context).
60
   Heather K. Gerken, Second-Order Diversity, 118 Harv. L. Rev. 1099, 1103-15 (2005).
61
   Id. at 1116-28.
2026-03-15]                                                                                                          15



reasonable in isolation but aggregate to produce systematic exclusion o
---
 particular groups. The
central administration claims commitment to pluralism. Individual departments claim to
exercise legitimate academic judgment. The excluded group has no recourse because no single
decision-maker is responsible 
---
or the pattern.62 This is the governance mechanism that the
disentanglement matrix exposes and that the re
---
orms proposed in Part IV are designed to
address. Exclusive inclusion operates through the interaction o
---
 institutional disaggregation
and accountability voids. The solution requires both transparency about who is acting (the
matrix) and structural re
---
orm to create accountability (the re
---
orms).


III. The Governance Void
    Why do American universities lack the governance mechanisms to prevent exclusive
inclusion? The accountability void that enables 
---
actional capture and systematic exclusion is
not an oversight. It is the product o
---
 legal architecture that concentrates authority without
oversight, insulates decisions without recourse, and invokes pluralist mission without
en
---
orceable commitment. Three 
---
eatures o
---
 this architecture warrant analysis.


     A. The Sovereign Charity Framework
     Elite private universities are what I term “sovereign charities”: institutions that wield
public in
---
luence, receive public subsidy, and per
---
orm public 
---
unctions, while governing
themselves as private corporations answerable to no external constituency. 63 They are not
public agencies subject to democratic oversight, nor market actors subject to shareholder
discipline. They are nonpro
---
it corporations whose boards select their own successors, de
---
ine
their own missions, and interpret their own compliance with those missions, while receiving
billions in 
---
ederal grants, tax exemptions, and student 
---
inancial aid. The tension between public

---
unction and private impunity is structural, and three architectural 
---
eatures contribute directly
to the production o
---
 exclusive inclusion.64


          1. The Sel
---
-Perpetuating Board
    Every colonial-era university charter, and most modern ones, vests ultimate governance
authority in a board o
---
 trustees that selects its own members.65 Harvard’s Corporation has


62
   Id. at 1129-43. Gerken’s 
---
ramework was developed in the context o
---
 jury composition and electoral districting,
but the analytical insight applies with equal 
---
orce to university governance. When authority is disaggregated across
multiple units (departments, committees, o
---

---
ices), the aggregation rules determine whether minority interests are
protected or systematically excluded.
63
   Oranburg, Sovereign Charities, supra note 16.
64
   Id. The tension between public 
---
unction and private impunity is not unique to universities but is particularly acute
in higher education because o
---
 the combination o
---
 enormous endowments, 
---
ederal research 
---
unding, student

---
inancial aid, and tax exemptions that together constitute a massive public subsidy to ostensibly private institutions.
65
   See Harvard University Charter o
---
 1650; Yale University Charter o
---
 1701 (as amended). The colonial charters
established a governance model that persists to this day: boards that select their own successors, with no binding
role 
---
or 
---
aculty, students, alumni, or the public.
16                                                                                                 Exclusive Inclusion



governed by internal appointment since 1650. Yale’s trustees elect their own replacements. At
most elite private universities, 
---
aculty, students, alumni, and the public have no binding role in
governance. They may advise; they do not decide. An institution so structured can absorb and
ignore external criticism inde
---
initely, because the people with authority to respond are the
people with authority to do nothing.66 Reputational pressure can in
---
luence board behavior, but
no 
---
ormal mechanism translates that pressure into compelled action. A board can listen or
ignore as it chooses.


          2. The Hollow Duty o
---
 Obedience
    Nonpro
---
it law nominally requires trustees to act within the institution’s stated mission: the
“duty o
---
 obedience” is supposed to constrain mission dri
---
t.67 But when trustees write the
mission statement themselves, and when the statement is vague enough to accommodate any
conceivable set o
---
 decisions, the constraint is 
---
ormal rather than operative. Harvard’s mission,
“to educate 
---
uture leaders” and “strive toward a more just, 
---
air, and promising world,” does
not describe a standard capable o
---
 judicial en
---
orcement. Courts de
---
er to trustees’ own
interpretations under the business judgment rule, and state attorneys general rarely allocate
resources to challenge even 
---
lagrant mission inconsistency. The vagueness is not accidental:
boards dra
---
t mission statements to preserve maximum 
---
lexibility and avoid judicial review.
Alan Palmiter has described the duty o
---
 obedience as the “
---
orgotten 
---
iduciary obligation,” a
duty with a long-standing history that modern nonpro
---
it practice has rendered toothless.68


          3. The Absence o
---
 Stakeholder Standing
     In a 
---
or-pro
---
it corporation, shareholders can bring derivative suits to discipline the board.
In a nonpro
---
it university, no comparable mechanism exists. Students, 
---
aculty, alumni, and
donors generally lack standing to challenge governance decisions.69 The state attorney general
is the nominal en
---
orcer, but attorneys general are chronically under-resourced and politically
disinclined to sue wealthy, prestigious institutions.70 The general rule that only the attorney
general has standing to en
---
orce charitable obligations re
---
lects an era when charities were small
and local. Applied to institutions with billion-dollar endowments and tens o
---
 thousands o
---



66
   This is not to say that external criticism has no e
---

---
ect; reputational concerns can in
---
luence board behavior. But
external criticism has no 
---
ormal mechanism through which to compel board action.
67
   See Evelyn Brody, Charity Governance: What’s Trust Law Got to Do with It?, 80 Chi.-Kent L. Rev. 641, 643-46
(2005) (tracing the duty o
---
 obedience to charitable trust doctrine and documenting its erosion in modern nonpro
---
it
law).
68
   Alan R. Palmiter, Duty o
---
 Obedience: The Forgotten Duty, 55 N.Y.L. Sch. L. Rev. 457, 458 (2010-11) (reviving
the traditional duty o
---
 obedience as a distinct 
---
iduciary obligation requiring nonpro
---
it trustees to abide by legal
restrictions applicable to their organizations).
69
   The general rule is that only the attorney general has standing to en
---
orce charitable obligations. See Restatement
(Third) o
---
 Trusts § 94 (2012). Some jurisdictions recognize limited exceptions 
---
or settlors or bene
---
iciaries with special
interests, but these rarely apply to university students or 
---
aculty.
70
   Evelyn Brody, Whose Public? Parochialism and Paternalism in State Charity Law En
---
orcement, 79 Ind. L.J. 937,
940-44 (2004) (documenting chronic under-resourcing and political disinclination o
---
 attorneys general to challenge
wealthy, prestigious charitable institutions).
2026-03-15]                                                                                                     17



students, the rule produces structural impunity: power exercised without meaning
---
ul
accountability.
    Limited exceptions exist but do not 
---
ill the void. Some states permit relator actions by
private parties on behal
---
 o
---
 the state. Donor standing was recognized in Smithers v. St. Luke’s-
Roosevelt Hospital Center, where the New York Appellate Division held that a donor’s estate
could en
---
orce restrictions on a charitable gi
---
t.71 The Cali
---
ornia Supreme Court’s decision in
Turner v. Victoria bolstered whistleblower protections by holding that a nonpro
---
it director who
loses her board position a
---
ter 
---
iling suit retains standing to maintain the action.72 Minnesota
permits groups o
---
 voting members to bring actions 
---
or equitable relie
---
.73 But none o
---
 these
mechanisms provides standing 
---
or the constituencies most directly a
---

---
ected by exclusive
inclusion: students and 
---
aculty experiencing systematic identity-based exclusion.


    B. The Governance Void as Immunode
---
iciency
    These three 
---
eatures, the sel
---
-perpetuating board, the hollow duty, and the standing bar,
constitute the governance void. The void is the structural precondition 
---
or exclusive
inclusion.74 It does not generate exclusion the way a cause generates an e
---

---
ect. It generates the
conditions under which organized 
---
actions can produce exclusion and then resist removal,
much as an immunode
---
iciency does not cause in
---
ection but eliminates the body’s capacity to
respond.
    The analogy is precise. A healthy immune system does not prevent the introduction o
---

pathogens. It provides mechanisms to identi
---
y and neutralize them be
---
ore they cause systemic
damage. An immunocompromised patient 
---
aces the same pathogen exposure as a healthy
person but lacks the capacity to mount an e
---

---
ective response. Similarly, a healthy governance
system does not prevent the emergence o
---
 
---
actional interests. It provides mechanisms,
stakeholder voice, board accountability, en
---
orceable mission commitments, to ensure that

---
actional interests cannot capture institutional authority to the systematic detriment o
---

particular groups. 75 When those mechanisms are absent, organized 
---
actions can deploy
institutional resources, o
---

---
icial channels, and delegated authority to produce identity-based
exclusion, and the institution has no capacity to respond.
    When the immune system 
---
ails, bombarding the patient with external treatments addresses
the presenting symptoms while leaving the underlying vulnerability intact. The 2025 
---
ederal
interventions demonstrate this dynamic in real time.

71
   Smithers v. St. Luke’s-Roosevelt Hosp. Ctr., 281 A.D.2d 127, 723 N.Y.S.2d 426 (N.Y. App. Div. 2001) (holding
that a donor’s estate has standing to en
---
orce restrictions on a charitable gi
---
t).
72
   Turner v. Victoria, No. S271054 (Cal. Aug. 3, 2023) (holding that a nonpro
---
it director who loses board position
a
---
ter 
---
iling suit under Cali
---
ornia Corporations Code §§ 5142, 5233 retains standing to maintain the action).
73
   See Minn. Stat. § 317A.751 (permitting 
---
i
---
ty or more voting members, or ten percent o
---
 members, to bring
actions 
---
or equitable relie
---
 in nonpro
---
it governance disputes).
74
   The causal relationship is not deterministic but probabilistic. A governance void does not guarantee exclusive
inclusion, but it makes exclusive inclusion structurally likely by removing the mechanisms that would otherwise
prevent or remedy it.
75
   These mechanisms need not be identical to corporate governance mechanisms (shareholder derivative suits,
proxy contests, hostile takeovers), but they must provide some 
---
orm o
---
 external accountability. The current system
provides none.
18                                                                                            Exclusive Inclusion



IV. Federal Coercion and Its Structural Limits
     The 2025 
---
ederal campaign against university governance 
---
ailures tested whether coercion
can substitute 
---
or governance re
---
orm. It cannot. Federal intervention and policy compliance

---
ailed not because they were poorly executed but because they attempted to change outputs
without changing the governance structure that produces those outputs. Understanding why
this 
---
ailure was structurally inevitable clari
---
ies the case 
---
or the re
---
orms proposed in Part IV.


     A. The Federal Intervention and Its Limits
     The Trump administration’s 2025 campaign against university governance 
---
ailures was, as
an exercise o
---
 
---
ederal power, unprecedented. The administration 
---
roze billions in research

---
unding across dozens o
---
 institutions. Federal o
---

---
icials opened Title VI investigations against
more than sixty universities.76 The administration imposed conditions on restoration o
---
 
---
unds
ranging 
---
rom governance changes to admissions data to de
---
initional mandates. Columbia
University agreed to approximately $200 million in settlements and saw $400 million in 
---
ederal
grants and contracts immediately cancelled.77 Brown University committed $50 million over
ten years.78 Universities capitulated at a pace that surprised many observers.
     What did capitulation produce? Settlement agreements required universities to adopt
particular de
---
initions o
---
 antisemitism, appoint student liaisons, conduct campus climate
surveys, and submit demographic data.79 One settlement a
---
ter another addressed the visible
sur
---
ace o
---
 the problem while leaving its in
---
rastructure untouched. Notice what none o
---
 these
settlements required: governance re
---
orm. No settlement mandated changes to board
composition or selection procedures. None created stakeholder standing 
---
or students or

---
aculty to challenge department-level exclusions. None strengthened the 
---
iduciary duty o
---

obedience or required mission statements speci
---
ic enough to constrain 
---
uture board discretion.
The settlements treated exclusive inclusion as a compliance de
---
icit curable by policy adoption.
Only structural re
---
orm can cure it.
     Harvard’s case is instructive 
---
rom the opposite direction. A 
---
ederal district court 
---
ound
that the 
---
unding 
---
reeze violated the First Amendment and 
---
ailed the requirements o
---
 the
Administrative Procedure Act. 80 Judge Allison Burroughs concluded that none o
---
 the
government’s grant termination letters speci
---
ied how Harvard had 
---
ailed to respond to
antisemitism in violation o
---
 Title VI, and that the administration had “used antisemitism as a

76
   The scope and speed o
---
 the 
---
ederal intervention were unprecedented, but the underlying legal authority was
conventional: Title VI o
---
 the Civil Rights Act o
---
 1964, which conditions 
---
ederal 
---
unding on nondiscrimination. 42
U.S.C. § 2000d.
77
   See Settlement Agreement, United States v. Columbia Univ. (S.D.N.Y. 2025); U.S. Dep’t o
---
 Educ., Termination o
---

Columbia University Federal Grants and Contracts (2025). Columbia also agreed to a separate $21 million EEOC
settlement 
---
or antisemitic discrimination. See EEOC Press Release, $21 Million Payout Process Begins 
---
or
Columbia University Antisemitism Settlement (2025), https://www.eeoc.gov/newsroom/21-million-payout-process-
begins-columbia-university-antisemitism-settlement-eeoc.
78
   Settlement Agreement, United States v. Brown Univ. (D.R.I. 2025).
79
   See sources cited supra notes 77-78.
80
   President & Fellows o
---
 Harvard Coll., No. 1:25-cv-10807-ADB, slip op. (D. Mass. July 14, 2025) (Burroughs, J.).
See supra note 13 and accompanying text.
2026-03-15]                                                                                                      19



smokescreen 
---
or a targeted, ideologically-motivated assault on this country’s premier
universities.” The ruling was correct on the administrative law. But it does nothing to address
the governance 
---
ailure that le
---
t students exposed at Harvard in the 
---
irst place. Harvard won in
court; the governance void persists on campus.


    B. The Economic Logic o
---
 Institutional Response
     Why did universities capitulate to policy demands while uni
---
ormly avoiding governance
re
---
orm? University counsel understood that policy changes are reversible and monitoring is
temporary, while governance re
---
orm is permanent.81 From a risk-management perspective,
accepting compliance obligations preserves institutional autonomy; accepting structural
re
---
orm surrenders it. This is a straight
---
orward application o
---
 option value theory: preserving

---
lexibility has value, and governance re
---
orm eliminates 
---
lexibility. Policy compliance preserves
the option to reverse course when political conditions change; governance re
---
orm 
---
orecloses
that option.
     The settlements thus represent a rational institutional choice: pay the 
---
ine, adopt the policy,
preserve the structure. The problem is that this rational choice 
---
or the institution produces an
irrational outcome 
---
or the students the institution claims to protect. The governance void that
produced the conditions requiring 
---
ederal intervention remains intact, ready to produce the
next crisis when political attention shi
---
ts.82


    C. The Persistence o
---
 Governance Failure
     The pattern documented at University o
---
 Cali
---
ornia campuses con
---
irms that governance

---
ailure persists at institutions never targeted by the 
---
ederal campaign.83 UC campuses are public
universities subject to state oversight by the Board o
---
 Regents. Yet 
---
aculty governance 
---
ailure
at multiple campuses produced severe conditions o
---
 student exclusion, with antisemitic
incidents rising as high as 3,000% during the 2023-2025 academic years at the three examined
campuses. 84 The documented recommendation is telling: it calls on the Regents to bar
academic departments 
---
rom using their UC association to promote boycotts and political
agendas and to prohibit political activism in the classroom. 85 It calls, in other words, 
---
or
governance re
---
orm: 
---
or the board to exercise oversight authority over 
---
aculty governance
bodies that organized 
---
actions have captured.
     The cycle is predictable and structurally inevitable: crisis emerges, 
---
ederal intervention

---
ollows, universities comply on paper, political attention shi
---
ts, compliance lapses, crisis re-

81
   This analysis applies option value theory to institutional behavior. See generally Avinash K. Dixit & Robert S.
Pindyck, Investment Under Uncertainty (1994) (developing the theory that preserving 
---
lexibility has value because it
preserves the option to reverse course when conditions change).
82
   The cycle is predictable: crisis emerges, 
---
ederal intervention 
---
ollows, universities comply on paper, political
attention shi
---
ts, compliance lapses, crisis re-emerges. The only way to break the cycle is to change the governance
structure that produces the crisis in the 
---
irst place.
83
   AMCHA Initiative, supra note 7.
84
   Id.
85
   Id.
20                                                                                            Exclusive Inclusion



emerges. No amount o
---
 
---
ederal pressure or policy re
---
orm can succeed when the governance
architecture that produces exclusive inclusion remains unchanged. Policy compliance cannot
succeed without governance re
---
orm because it attempts to change outputs without changing
the structure that produces those outputs. Even i
---
 an institution adopts per
---
ect policies and
implements them per
---
ectly, the governance architecture remains unchanged. When leadership
changes or political attention shi
---
ts, the same governance structure that produced the original
crisis remains in place, ready to produce the next crisis. Only structural re
---
orm, changing the
governance architecture itsel
---
, can break this cycle.


V. Toward Structural Re
---
orm
    This Essay proposes three procedural re
---
orms rather than substantive ones. They do not
require universities to adopt particular values, admit particular students, or reach particular
conclusions about any contested political question. They require only that universities govern
themselves through structures that make institutional capture harder, stakeholder recourse
available, and identity-based exclusion cognizable. Each re
---
orm targets a speci
---
ic 
---
eature o
---

the accountability void, and together they create overlapping accountability mechanisms that
make exclusive inclusion structurally unlikely.


     A. Standing Re
---
orm
    The most immediate structural need is to give a
---

---
ected stakeholders a legal mechanism to
challenge exclusive inclusion when it occurs. Under current law, only the state attorney general
can en
---
orce 
---
iduciary duties against nonpro
---
it boards, and attorneys general almost never do
so. Students, 
---
aculty, alumni, and donors are locked out. The result is that no court can
e
---

---
ectively review department-level exclusion campaigns or the selective en
---
orcement o
---

inclusion policies.
    Legislatures could expand standing by enacting statutes that permit stakeholders with
sustained institutional ties, currently enrolled students and currently employed 
---
aculty, to bring
derivative actions to en
---
orce existing 
---
iduciary duties against nonpro
---
it educational institution
boards.86 The model is the corporate derivative action, adapted 
---
or the nonpro
---
it context.
Corporate derivative suits have not produced a 
---
lood o
---
 
---
rivolous litigation; instead, the
primary e
---

---
ect has been deterrent, with boards exercising greater care knowing that
shareholders can en
---
orce duties.87 The Cali
---
ornia Supreme Court’s decision in Turner v. Victoria
supports expansion by recognizing that restricting standing to institutional insiders can itsel
---

undermine en
---
orcement and acknowledging legislative authority to create stakeholder
en
---
orcement mechanisms 
---
or charitable entities.88

86
   The standing re
---
orm would not create a new cause o
---
 action but would expand standing to en
---
orce existing

---
iduciary duties. The substantive obligations remain unchanged; what changes is who can en
---
orce them.
87
   See generally Frank H. Easterbrook & Daniel R. Fischel, The Economic Structure o
---
 Corporate Law 96-99 (1991)
(analyzing deterrent e
---

---
ects o
---
 derivative suit mechanisms and documenting that procedural sa
---
eguards e
---

---
ectively
prevent 
---
rivolous litigation while permitting meritorious en
---
orcement).
88
   Turner v. Victoria, No. S271054 (Cal. Aug. 3, 2023).
2026-03-15]                                                                                                         21



     Procedural sa
---
eguards 
---
amiliar 
---
rom corporate practice would prevent harassment
litigation. A demand requirement would require stakeholders to petition the board and wait
ninety days 
---
or response be
---
ore 
---
iling suit, giving the board an opportunity to address the
problem through internal governance.89 Heightened pleading standards similar to Federal Rule
o
---
 Civil Procedure 23.1 would require plainti
---

---
s to plead speci
---
ic 
---
acts, not mere conclusions,
showing breach o
---
 
---
iduciary duty and harm. A bond requirement, set by the court based on
the institution’s likely costs, would deter 
---
rivolous litigation while permitting waiver 
---
or
plainti
---

---
s demonstrating 
---
inancial hardship. Fee-shi
---
ting provisions would allow prevailing
plainti
---

---
s to recover attorney’s 
---
ees 
---
rom the institution while permitting prevailing de
---
endants
to recover only when the action is 
---
ound 
---
rivolous or brought in bad 
---
aith.90 Judicial review

---
or abuse o
---
 discretion rather than de novo review would preserve appropriate de
---
erence to
board judgment while creating accountability 
---
or decisions that breach 
---
iduciary duties.
     The standing re
---
orm creates accountability without dictating outcomes. It does not require
universities to adopt any particular policy, hire any particular person, or admit any particular
student. It requires only that governance decisions be made through processes that do not
systematically exclude stakeholders on the basis o
---
 identity, and that a
---

---
ected stakeholders have
a mechanism to challenge decisions that do. Knowing that stakeholders can en
---
orce 
---
iduciary
duties, boards would be more care
---
ul to ensure that governance structures do not produce
systematic exclusion.91


     B. Duty o
---
 Obedience Re
---
orm
    State nonpro
---
it law requires trustees to act within the institution’s stated mission, but when
mission statements are vague enough to accommodate any conceivable decision, the duty o
---

obedience becomes unen
---
orceable. 92 Universities dra
---
t mission statements that sound
aspirational but provide no operational constraint. “To educate 
---
uture leaders” does not tell a
court anything about whether a board has 
---
ailed its duty. The duty o
---
 obedience exists. The
problem is the vagueness that renders it toothless.
    State legislatures could operationalize the duty o
---
 obedience by requiring mission
statements o
---
 tax-exempt educational institutions to include speci
---
ic, measurable
commitments to equal treatment o
---
 all members regardless o
---
 religion, ethnicity, national
origin, and other protected characteristics.93 Such speci
---
icity would give courts and attorneys

89
   C
---
. Del. Code Ann. tit. 8, § 327 (demand requirement in corporate derivative suits); Fed. R. Civ. P. 23.1
(particularized pleading requirements 
---
or derivative actions).
90
   These procedural sa
---
eguards mirror those that have e
---

---
ectively prevented a litigation 
---
lood in the corporate
derivative suit context while maintaining meaning
---
ul accountability 
---
or board decisions. See Easterbrook & Fischel,
supra note 87.
91
   The re
---
orm would also generate in
---
ormation about governance practices that is currently hidden, enabling external
monitoring and reputational accountability even apart 
---
rom litigation outcomes. Derivative suits in the corporate
context have been shown to produce deterrence value exceeding their direct en
---
orcement e
---

---
ects.
92
   See Palmiter, supra note 68.
93
   The speci
---
icity requirement would not dictate substantive values but would require that whatever values the
institution claims to hold be stated with su
---

---
icient precision to permit en
---
orcement. An institution that does not wish
to commit to equal treatment across identity groups would be 
---
ree to say so explicitly, but could not claim such a
commitment while maintaining governance structures that produce systematic exclusion.
22                                                                                                Exclusive Inclusion



general a standard against which to evaluate institutional deviation. An institution that does
not wish to commit to equal treatment across identity groups would be 
---
ree to say so explicitly,
but could not claim such a commitment while maintaining governance structures that produce
systematic exclusion.
     The Robertson v. Princeton University litigation demonstrated the principle. The Robertson

---
amily donated $35 million in 1961 to 
---
und the Woodrow Wilson School with emphasis on
placing graduates in 
---
ederal government service. When the heirs alleged Princeton had diverted
endowment to unrelated purposes, the six-year litigation, though settled be
---
ore 
---
inal judgment,
demonstrated that when a mission commitment is speci
---
ic enough to be justiciable, courts can
evaluate whether institutional conduct is consistent with the 
---
iduciary obligation. 94 The
settlement required structural separation: dissolution o
---
 the Robertson Foundation and
trans
---
er o
---
 $50 million to an independent entity. The problem is not the duty’s existence but
the vagueness that renders it unen
---
orceable. Requiring particularity in mission dra
---
ting, as a
condition o
---
 state charitable registration or tax exemption, would give the duty operative
content.
     The speci
---
icity requirement would not dictate substantive values. It would require that
whatever values the institution claims to hold be stated with su
---

---
icient precision to permit
en
---
orcement. Mission speci
---
icity makes the duty o
---
 obedience en
---
orceable, and en
---
orceability
creates the accountability that the governance void currently lacks.95


     C. Operational Test Re
---
orm
     The IRS conditions 501(c)(3) tax exemption 
---
or educational institutions on satis
---
action o
---

the “operational test,” the requirement that the organization operate exclusively 
---
or exempt
purposes.96 But the operational test 
---
or universities imposes no accountability requirement 
---
or
governance structures that produce systematic identity-based exclusion. Universities 
---
ace no
obligation comparable to the community bene
---
it standard that nonpro
---
it hospitals must
satis
---
y.
     The hospital community bene
---
it standard provides a working model. Revenue Ruling 69-
545 conditions hospital tax exemption on promoting “the health o
---
 a broad class o
---
 individuals
in the community served,” and the A
---

---
ordable Care Act’s Section 501(r) requirements mandate
triennial community health needs assessments, community input processes, and
implementation strategies.97 In exchange 
---
or approximately $37.4 billion in tax exemptions,

94
   Robertson v. Princeton Univ., No. C-99-02 (N.J. Super. Ct. 2008) (settled). The six-year litigation cost
approximately $90 million in legal 
---
ees. The settlement required dissolution o
---
 the Robertson Foundation and
trans
---
er o
---
 $50 million to an independent Robertson Foundation 
---
or Government. See generally Rob Reich,
Philanthropic Mission and Accountability, in Philanthropy in Democratic Societies 231 (Rob Reich, Chiara Cordelli &
Lucy Bernholz eds., Univ. o
---
 Chi. Press 2016) (discussing the Robertson litigation and its implications 
---
or donor
intent and mission speci
---
icity).
95
   Mission speci
---
icity also serves the institution’s own interests by clari
---
ying expectations 
---
or board members,
providing a 
---
ramework 
---
or evaluating institutional decisions, and reducing the risk o
---
 costly litigation over vague or
contested obligations.
96
   I.R.C. § 501(c)(3) (2018); Treas. Reg. § 1.501(c)(3)-1(c) (2025).
97
   Rev. Rul. 69-545, 1969-2 C.B. 117 (conditioning hospital tax exemption on promoting “the health o
---
 a broad
class o
---
 individuals in the community served”); I.R.C. § 501(r) (requiring triennial community health needs
2026-03-15]                                                                                                         23



nonpro
---
it hospitals must satis
---
y concrete requirements 
---
or emergency care access, service to
Medicaid patients, and community health programming. 98 Universities receive comparable
public subsidies through tax exemptions, deductible donations, and 
---
ederal grants, but 
---
ace no
comparable governance accountability requirement.
     The IRS could reinterpret the operational test to condition tax exemption 
---
or educational
institutions on demonstrated equal access across identity groups and governance structures
that prevent systematic exclusion.99 The IRS has statutory authority to interpret the operational
test through regulations and revenue rulings, and the hospital community bene
---
it standard was
adopted through IRS rulemaking rather than congressional legislation, demonstrating the
administrative authority to condition tax exemption on governance structures that serve the
public interest.100 A re
---
ormed operational test would condition public subsidy on governance
structures that do not produce systematic identity-based exclusion. It would not mandate any
particular viewpoint. It would require that the institution’s governance architecture make
exclusive inclusion structurally unlikely.
     One constitutional concern warrants direct engagement. Conditioning tax exemption on
governance requirements implicates the unconstitutional conditions doctrine, under which the
government may not leverage a bene
---
it to compel relinquishment o
---
 constitutional rights.101
But the proposed operational test targets governance structures, not viewpoint or speech.
Content-neutral conditions on tax exemption have survived constitutional scrutiny when they
address organizational conduct rather than expressive activity; the hospital community bene
---
it
standard conditions exemption on service delivery and governance processes without
triggering First Amendment review. 102 Universities possess academic 
---
reedom claims that
hospitals lack, but the proposed test does not regulate what universities teach, whom they
admit based on intellectual criteria, or what positions 
---
aculty may hold. It requires only that
governance architecture not produce systematic identity-based exclusion. Such a structural
requirement is analogous to nondiscrimination conditions that already attach to 
---
ederal

---
unding under Title VI, which condition public subsidy on institutional conduct without

assessments, community input, and implementation strategies 
---
or nonpro
---
it hospitals as a condition o
---
 tax
exemption).
98
   See Health A
---

---
airs Brie
---
, Nonpro
---
it Hospitals: Community Bene
---
it Requirements (noting approximately $37.4 billion
in tax exemptions 
---
or nonpro
---
it hospitals subject to community bene
---
it requirements),
https://www.healtha
---

---
airs.org/content/brie
---
s/nonpro
---
it-hospitals-community-bene
---
it-requirements.
99
   The IRS has statutory authority to interpret the operational test through regulations and revenue rulings. I.R.C. §
7805(a). The hospital community bene
---
it standard was adopted through IRS rulemaking, not congressional
legislation, demonstrating the administrative authority to condition tax exemption on governance structures that
serve the public interest.
100
    See sources cited supra notes 97-98.
101
    See Speiser v. Randall, 357 U.S. 513, 518-19 (1958) (establishing the unconstitutional conditions doctrine in
the tax exemption context); see also Agency 
---
or Int’l Dev. v. All. 
---
or Open Soc’y Int’l, Inc., 570 U.S. 205, 214 (2013)
(rea
---

---
irming that the government “may not deny a bene
---
it to a person on a basis that in
---
ringes his constitutionally
protected . . . 
---
reedom o
---
 speech” (quoting Perry v. Sindermann, 408 U.S. 593, 597 (1972))).
102
    Revenue Ruling 69-545 conditions hospital tax exemption on community bene
---
it without implicating hospital
“speech.” See Rev. Rul. 69-545, 1969-2 C.B. 117. Nondiscrimination requirements that attach to 
---
ederal 
---
unding
under Title VI provide a parallel model: they condition public subsidy on institutional conduct without regulating
institutional expression. See 42 U.S.C. § 2000d (2018); c
---
. Rums
---
eld v. Forum 
---
or Acad. & Inst. Rights, Inc. (FAIR),
547 U.S. 47, 59-60 (2006) (holding that conditions on 
---
ederal 
---
unding requiring equal access 
---
or military recruiters
did not violate universities’ First Amendment rights because they regulated conduct, not speech).
24                                                                                                 Exclusive Inclusion



regulating institutional speech. Content-neutral governance requirements occupy di
---

---
erent
constitutional ground than viewpoint-based conditions on institutional expression.


      D. How the Three Re
---
orms Work Together
    The three re
---
orms are complementary and mutually rein
---
orcing, each addressing a
di
---

---
erent dimension o
---
 the accountability void.
    Stakeholder standing creates a mechanism 
---
or en
---
orcement but requires en
---
orceable
standards. Without mission speci
---
icity, stakeholders would have standing but no clear standard
to en
---
orce. Mission speci
---
icity creates en
---
orceable standards but requires someone with
standing to en
---
orce them. Without stakeholder standing, mission speci
---
icity would be
unen
---
orceable in practice. Operational test re
---
orm creates external accountability through tax
exemption conditions but requires internal accountability mechanisms to be e
---

---
ective. Without
stakeholder standing and mission speci
---
icity, institutions could satis
---
y the operational test on
paper while continuing to produce systematic exclusion in practice.103
    Together, the three re
---
orms create overlapping accountability mechanisms: internal
accountability through stakeholder en
---
orcement, legal accountability through en
---
orceable

---
iduciary duties, and external accountability through tax exemption conditions. This
redundancy is intentional. Exclusive inclusion persists because the current system has no
accountability mechanisms. Creating multiple overlapping mechanisms makes systematic
exclusion structurally unlikely even i
---
 any single mechanism 
---
ails.


      E. Addressing Objections
      Three objections to these re
---
orms deserve engagement.


          1. The Litigation Flood Objection
    Critics may argue that stakeholder standing will produce a 
---
lood o
---
 
---
rivolous litigation,
overwhelming courts and institutions. Corporate derivative suit experience demonstrates
otherwise. Despite decades o
---
 shareholder standing, derivative suits remain a small 
---
raction o
---


---
ederal litigation, and the procedural sa
---
eguards, demand requirements, heightened pleading,
bond requirements, and 
---
ee-shi
---
ting, e
---

---
ectively deter 
---
rivolous claims while permitting
meritorious ones. 104 Even i
---
 litigation increases, that increase would re
---
lect currently
unaddressed governance 
---
ailures, not 
---
rivolous claims. The primary e
---

---
ect o
---
 standing is
deterrent: boards will exercise greater care to prevent systematic exclusion knowing that

103
    The complementary relationship among the three re
---
orms ensures that no single point o
---
 
---
ailure can de
---
eat the
accountability system. I
---
 stakeholder standing produces insu
---

---
icient litigation, mission speci
---
icity and the operational
test provide alternative accountability mechanisms. I
---
 mission speci
---
icity is undermined by vague interpretations,
stakeholder standing and the operational test provide checks. I
---
 the operational test is weakened by administrative
discretion, stakeholder standing and mission speci
---
icity provide internal accountability.
104
    See Easterbrook & Fischel, supra note 87, at 96-99; see also James D. Cox & Randall S. Thomas, Does the
Plainti
---

---
 Matter? An Empirical Analysis o
---
 Lead Plainti
---

---
s in Securities Class Actions, 106 Colum. L. Rev. 1587 (2006)
(
---
inding that procedural sa
---
eguards e
---

---
ectively screen 
---
rivolous 
---
rom meritorious derivative and class actions).
2026-03-15]                                                                                                   25



stakeholders can en
---
orce duties. I
---
 the prospect o
---
 accountability deters board service, that
itsel
---
 suggests boards are not currently accountable.


         2. The Institutional Autonomy Objection
    Critics may contend that these re
---
orms inter
---
ere with academic governance and
institutional autonomy. Standing is limited to en
---
orcement o
---
 
---
iduciary duties, not academic
decisions. Courts applying derivative suit standards de
---
er to board decisions made in good

---
aith under the business judgment rule. The re
---
orms address governance 
---
ailures, systematic
identity-based exclusion, not academic judgments about curriculum, hiring criteria, or
admissions philosophy. Institutional autonomy is not absolute and has never meant immunity

---
rom accountability; it must be balanced against the rights o
---
 the constituencies that
institutions exist to serve.105 Framed properly, these re
---
orms serve institutional interests: they
reduce litigation risk 
---
rom 
---
ederal en
---
orcement actions, improve institutional reputation,
enhance mission 
---
ul
---
illment, and strengthen institutional legitimacy.


         3. The Structural Insu
---

---
iciency Objection
    Some may argue that governance re
---
orm is too slow to help students who need protection
now. This objection re
---
lects a 
---
alse choice. Federal en
---
orcement and policy compliance should
continue to address immediate crises, but they must be accompanied by governance re
---
orm
to prevent 
---
uture crises. The choice is not between immediate relie
---
 and long-term re
---
orm but
between temporary relie
---
 that requires constant renewal and permanent re
---
orm that makes

---
uture crises structurally unlikely.106 Federal coercion without governance re
---
orm is a reprieve.
Governance re
---
orm is a reconstruction.


VI. Conclusion
    The governance void in American higher education did not produce the conditions o
---

exclusive inclusion by accident. It produced them by design: not the design o
---
 malicious
individuals, but the design o
---
 legal architecture constructed without external accountability,
maintained without stakeholder recourse, and justi
---
ied by claims to pluralist mission that the
same architecture makes impossible to en
---
orce.
    Federal coercion addresses symptoms. Compliance addresses optics. Neither reaches the
void.


105
    See generally Iris J. Goodwin, Donor Standing to En
---
orce Charitable Gi
---
ts: Civil Society vs. Donor
Empowerment, SSRN (2004) (analyzing the tension between institutional autonomy and stakeholder accountability
in nonpro
---
it governance); Dana Brakman Reiser, Director Independence in the Independent Sector, 76 Fordham L.
Rev. 795 (2007) (discussing governance design limits in the nonpro
---
it sector).
106
    Federal en
---
orcement and governance re
---
orm are complements, not substitutes. Federal en
---
orcement addresses
immediate crises and signals that systematic exclusion is unacceptable. Governance re
---
orm prevents 
---
uture crises
by changing the structural conditions that produce them. Neither alone is su
---

---
icient; both together can break the
cycle.
26                                                                             Exclusive Inclusion



     Exclusive inclusion theory identi
---
ies what existing 
---
rameworks o
---
 discrimination,
organizational hypocrisy, and institutional isomorphism cannot explain: how institutions with
genuine commitments to pluralism produce systematic exclusion through governance
architecture alone. The mechanism operates across identity categories because the
accountability void does not discriminate among the groups it leaves unprotected. The
disentanglement matrix makes this structural character visible, separating individual expression

---
rom institutional action and perspective-based disputes 
---
rom identity-based exclusion.
Together, the concept and the diagnostic tool make exclusive inclusion cognizable and
remediable.
     The accountability void diagnosed here is not unique to universities. Museums governed
by sel
---
-perpetuating boards, 
---
oundations with vague mission statements, and major nonpro
---
it
organizations whose governance combines public 
---
unction with private impunity share the
structural conditions that make exclusive inclusion possible. I
---
 the 
---
ramework proves
explanatory in higher education, where the accountability void is most visible and the evidence
most developed, 
---
uture scholarship should test whether the same governance architecture
produces comparable patterns across the nonpro
---
it sector, and whether stakeholder standing,
mission speci
---
icity, and operational test re
---
orm can be adapted to institutional environments
where the stakes and stakeholders di
---

---
er but the structural logic is the same.
     Three re
---
orms target the three 
---
eatures o
---
 the void. Built on existing legal 
---
rameworks in
corporate governance and hospital regulation, they create overlapping accountability
mechanisms that make systematic exclusion structurally unlikely without imposing ideological
requirements. They create procedural conditions under which institutional authority is harder
to capture and, when captured, more likely to 
---
ace challenge.
     What the 2025 settlements purchased was a reprieve; but what university governance
requires is a reconstruction o
---
 standing, o
---
 
---
iduciary duty, o
---
 the relationship between public
subsidy and institutional accountability. that rebinds institutional authority to the public
purposes that justi
---
y it. The task is not to reinvent American higher education. It is to make
its governance mean what it claims.
