In all the hubbub about Cambridge placing a lien on the A.D. and the A.D.’s hi-larious outrage over this exposure, this seems to have slipped through the cracks:

While college fraternities and social clubs are tax-exempt organizations—the A.D. bills itself as a “members only social club of alumni of Harvard University” on the tax filing—the club rents the first floor of the building to Adidas and must pay taxes on that income.

The relevant IRS code is here. It’s interesting that this is the sole discriminatory prohibition:

A club will not be recognized as tax exempt if its charter, by laws, or other governing instrument, or any written policy statement provides for discrimination against any person based on race, color, or religion.

Gender, notably, is absent. Surprising that the federal government’s tax code has literally written “old boys’ clubs” into the law.