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In the spring, a similar competition sponsored by the American Association of Christian Schools, and hosted by BJU since 1977, brings thousands of national finalists to the university from around the country.

From 1971 to 1975, BJU admitted only married blacks, although the Internal Revenue Service (IRS) had already determined in 1970 that "private schools with racially discriminatory admissions policies" were not entitled to federal tax exemption. 160 [1976]), which prohibited racial exclusion in private schools. Bush to the university, Bob Jones III dropped the university's interracial dating rule, announcing the change on CNN's Larry King Live. That year BJU enrolled students from fifty states and nearly fifty countries, representing diverse ethnicities and cultures, and the BJU administration declared itself "committed to maintaining on the campus the racial and cultural diversity and harmony characteristic of the true Church of Jesus Christ throughout the world".

In 1975, the University Board of Trustees authorized a change in policy to admit black students, a move that occurred shortly before the announcement of the Supreme Court decision in Runyon v. In 2005, Stephen Jones, great-grandson of the founder, became BJU's president on the same day that he received his Ph. In his first meeting with the University cabinet in 2014, the fifth president Steve Pettit said he believed it was appropriate for BJU to regain its tax-exempt status because BJU no longer held its earlier positions about race.

Enrollment quickly rebounded, and by 1970, there were 3300 students, approximately 60% more than in 1958.

In 1971, Bob Jones III became president at age 32, though his father, with the title of Chancellor, continued to exercise considerable administrative authority into the late 1990s.

Jones said that although he had been averse to naming the school after himself, his friends overcame his reluctance "with the argument that the school would be called by that name because of my connection with it, and to attempt to give it any other name would confuse the people." Bob Jones took no salary from the college and helped support the school with personal savings and income from his evangelistic campaigns. The Florida land boom had peaked in 1925, and a hurricane in September 1926 further reduced land values. Bob Jones College barely survived bankruptcy and its move to Cleveland, Tennessee in 1933.

In the same year, the college also ended participation in intercollegiate sports.During the Fundamentalist-Modernist controversy of the 1920s, Christian evangelist Bob Jones, Sr.grew increasingly concerned about the secularization of higher education and the influence of religious liberalism in denominational colleges.With the enactment of GI Bill at the end of World War II, the college was virtually forced to find a new location and build a new campus.Though he had served as Acting President as early as 1934, Jones' son, Bob Jones, Jr.engaged in a controversy about the propriety of theological conservatives cooperating with theological liberals to support evangelistic campaigns, a controversy that widened an already growing rift between separatist fundamentalists and other evangelicals.

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