Grace School of Theology and Ministry operates under a religious exemption from the Private Post-secondary Education Act of 1977, as provided for in section 94303(b) of the California Education Code. This exempt status means that under the doctrine of Separation of Church and State, Grace School of Theology and Ministry may provide education appropriate to the furtherance of the Gospel of Jesus Christ without interference from government. This freedom from government interference also prevents the state from any recognition of the education, diploma, or degrees awarded by the school until such time as the school has accumulated sufficient assets as required by law to apply for full authorization as a degree-granting school of theology under the provisions of section 94310(d) of the California Education Code.

Both the degree program and the diploma program are recognized by a large number of evangelical churches (both independent churches and representative churches from several different evangelical denominations) in the San Francisco Bay Area as meeting the requirements for a sound Biblical and theological education for pastors and church leaders. Alumnae of Grace School of Theology and Ministry have been accepted in such institutions as Western Baptist College (Salem, Oregon), Western Conservative Baptist Seminary (Portland, Oregon and Los Gatos, California), The Master’s Seminary (Panorama City, California) and Dallas Theological Seminary (Dallas, Texas). However, students who plan to transfer to other schools, or who plan to enroll in graduate studies upon completion of their program at Grace School should check with those institutions for transferability of credit.

Until such time as full state recognition and/or authorization is obtained, the faculty, staff, and administration of Grace School of Theology and Ministry are fully dedicated to compliance with the standards established by section 94312 of the California Education Code and the California Private Post-secondary Education Act of 1977 as amended.