AMA Foundation Faces IRS Complaint Over Race-Based Medical Scholarships

A medical watchdog group filed a formal complaint with the IRS on April 8, 2026, asking the agency to investigate the American Medical Association Foundation over scholarships that restrict eligibility based on race or ethnicity. The group, Do No Harm, argues that at least three scholarships in the AMA Foundation’s Physicians of Tomorrow program violate federal law — and that the Foundation could lose its tax-exempt status as a result. Neither the IRS nor the AMA Foundation has publicly responded.

Key Facts at a Glance

Field	Detail
Organization Under Scrutiny	American Medical Association Foundation
Complaint Filed By	Do No Harm (represented by Consovoy McCarthy)
Filed With	IRS — Exempt Organizations and Government Entities division
Date Filed	April 8, 2026
Program in Question	Physicians of Tomorrow Scholarship
Legal Argument	Race-based eligibility violates 26 U.S.C. § 501(c)(3) and established public policy
Potential Consequence	Revocation of the AMA Foundation’s federal tax-exempt status
AMA Foundation Response	No comment as of April 9, 2026
IRS Response	No comment as of April 9, 2026

Where Things Stand Right Now

• Do No Harm filed the complaint on April 8, 2026. The IRS has not announced whether it will open a formal investigation.
• The AMA Foundation has not modified or suspended any of the named scholarships as of the time of writing.
• This is a complaint stage only — no legal ruling has been issued, and the AMA Foundation has not been found to have violated any law.

What Is the AMA Foundation and What Does It Do?

The American Medical Association Foundation is the philanthropic arm of the American Medical Association — the largest professional organization representing physicians in the United States. One of its flagship initiatives is the Physicians of Tomorrow Scholarship program, which it has run since 1950.

The program distributed approximately $420,000 in scholarships in the most recent year on record and has awarded a cumulative total of $62 million to medical students since it launched. Scholarships go to third-year medical students, with most awards ranging up to $10,000 along with national recognition and access to professional resources.

The AMA Foundation’s annual report also noted the launch of a 2025 initiative aimed at increasing diversity within the physician workforce.

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Which Scholarships Did the Complaint Target?

Do No Harm identified three specific scholarships within the Physicians of Tomorrow program that it says restrict eligibility based on race or ethnicity:

1. Dr. Richard Allen Williams & Genita Evengelista Johnson / Association of Black Cardiologists Scholarship This award offers $5,000 to medical students interested in cardiology, but only if they are African American or Black.

2. Underrepresented in Medicine Scholarship This scholarship offers $10,000 to winners who must be African American/Black, Hispanic/Latine, or Indigenous — meaning American Indian, Native Hawaiian, or Alaska Native. Applicants from other racial backgrounds, including Asian and white students, are excluded from consideration.

3. Patricia L. Austin Family Physicians of Tomorrow Scholarship This scholarship also offers $10,000, but requires winners to be of Eastern European descent. Students from other backgrounds cannot apply.

Do No Harm called these restrictions “textbook discrimination,” stating that they are unlawful and contrary to public policy.

What Is the Legal Argument Behind the Complaint?

Do No Harm and its lawyers at Consovoy McCarthy built their complaint around two main legal foundations.

The first is Bob Jones University v. United States (1983), a Supreme Court decision in which the Court ruled that the federal government could deny tax-exempt status to a nonprofit that engaged in racially discriminatory behavior. In that case, the Court ruled that the IRS had rightly revoked 501(c)(3) status from Bob Jones University because it prohibited interracial dating and marriage. Do No Harm argues the same principle applies to race-restricted scholarships.

The second foundation is the 2023 Supreme Court ruling in Students for Fair Admissions v. Harvard, which barred the use of race in college admissions decisions. Do No Harm’s complaint references this ruling as further legal precedent supporting its position.

The complaint argues that under Supreme Court precedent, having even a single unlawful policy under 26 U.S.C. § 501(c)(3) — including a racially discriminatory policy — makes an entire organization ineligible for tax-exempt status.

The IRS division that received the complaint oversees tax-exempt organizations and has the authority to launch an investigation and ultimately revoke 501(c)(3) status if it finds a violation.

Who Filed the Complaint and What Do They Want?

Do No Harm is a nonprofit organization made up of doctors, nurses, and other medical professionals. The group describes its mission as exposing what it views as politically motivated practices in American medicine, including racial preferences and DEI-related policies.

Do No Harm’s letter to the IRS stated: “If the AMA Foundation wishes to avoid such an investigation and maintain its tax-exempt status, it can simply open each of its scholarships and any similar programs to all races.”

The group is asking the IRS to open a formal investigation. If the IRS agrees and ultimately revokes the AMA Foundation’s tax-exempt status, the Foundation would lose its ability to receive tax-deductible charitable donations — a significant financial consequence for any nonprofit organization.

What Could Happen Next?

The IRS receives thousands of complaints against nonprofit organizations each year and does not announce publicly whether it has opened an investigation in any specific case. There is no set timeline for the agency to respond.

If the IRS does open an investigation, it could result in one of three outcomes: the AMA Foundation voluntarily changes its scholarship eligibility criteria, the IRS finds no violation and closes the investigation, or the IRS moves to revoke the Foundation’s tax-exempt status — a process that would likely involve lengthy legal proceedings.

The AMA Foundation has not publicly indicated whether it plans to modify the scholarships in question. As of April 9, 2026, neither the IRS nor the AMA Foundation has responded to press inquiries about the complaint.

Frequently Asked Questions

What is the AMA Foundation being accused of?

 Do No Harm filed a complaint with the IRS alleging that the AMA Foundation’s Physicians of Tomorrow Scholarship program unlawfully restricts certain awards to applicants of specific races or ethnicities. The group argues this makes the Foundation ineligible to hold federal tax-exempt status under 26 U.S.C. § 501(c)(3).

Is this a lawsuit? 

No. This is an administrative complaint filed with the IRS — not a court case. Do No Harm is asking the IRS to investigate and potentially revoke the AMA Foundation’s tax-exempt status. No judge or court is currently involved.

Has the AMA Foundation been found guilty of anything?

 No. As of April 9, 2026, this is an allegation at the complaint stage. The IRS has not announced an investigation, and no legal ruling has been made. The AMA Foundation has not been found to have violated any law.

What is the Physicians of Tomorrow Scholarship program? 

It is the AMA Foundation’s flagship scholarship initiative, which has awarded medical students a total of $62 million since 1950. The program targets third-year medical students and distributes roughly $420,000 per year across multiple individual scholarship awards.

What law does Do No Harm say the AMA Foundation violated? 

The complaint cites 26 U.S.C. § 501(c)(3), the federal law governing tax-exempt nonprofit organizations. It also references the 1983 Supreme Court ruling in Bob Jones University v. United States and the 2023 Students for Fair Admissions ruling, which barred race-based college admissions decisions.

Could the AMA Foundation lose its tax-exempt status?

 It is possible if the IRS opens an investigation and finds a violation. However, this process is lengthy and the AMA Foundation would have opportunities to respond and appeal. The more immediate path is for the Foundation to revise its scholarship criteria to avoid a formal investigation — which Do No Harm has explicitly invited it to do.

What is Do No Harm? 

Do No Harm is a nonprofit organization of healthcare professionals that opposes what it describes as politically motivated practices in medicine. It has previously filed complaints and legal actions against other medical institutions over race-based and DEI-related policies.

Sources & References

1. Do No Harm IRS Complaint (PDF) — Do No Harm / Consovoy McCarthy

Last Updated: April 9, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.