Why does Harvard have tax-exempt status, and can Trump's IRS revoke it?

President Donald Trump has set his sights on Harvard University after it rebuffed his calls for policy changes regarding antisemitism, and he has reportedly directed the IRS to look into removing its tax-exempt status.

Tax exemptions were created so charitable organizations and educational and religious institutions could continue to do work for the public good without financial worries. Large research universities such as Harvard are dependent on federal grants, the first target of the Trump administration.