Their primary concern is that the organization is truly non-profit and qualified to be exempt from tax. I guess the proportion of a university's revenue report

Their primary concern is that the organization is truly non-profit and qualified to be exempt from tax. I guess the proportion of a university's revenue reported as being paid out in grants might influence the IRS's determination of whether the institution is providing enough public benefit to maintain its non-profit status? An increase in sticker price (with no increase in net price) would make this ratio higher, making it look like the college is spending a large % of revenue on public benefit?