This seems to be the latest legal reference with regard to colleges and universities retaining 501c(3) status.
> Of total endowment distribution, 56 percent were made for scholarships, awards, grants and/or loans in the amount of $3 million. 29 percent of total endowment distributions were made for general university operations in the amount of $3 million.
> Half of the systems reported that at least one of its five most highly paid employees received NCAA income.
Tuition-dependent colleges and universities tend to look very different from their large endowment counterparts.