They are a non-profit which means they aren't paying taxes. There is zero practical difference between the government giving you money and the government not taxing you. Either way you get more and the state gets less. And that is just Harvard by itself, that doesn't include all the tax breaks people get for donating to them so their spoiled brat can get a spot. Basically the taxpayer is subsidizing bribes.

This of course ignores that they openly defied the government when they were asked to clear the whole AA mess up. All it would have taken was them to just show their entrance criteria and put the issue to rest.