For Profit vs Not for Profit Schools
Published May 25, 2008
What are the advantages and/or disadvantages of a for profit versus a not for profit school? Is one kind of school better than the other?
For Profit Schools
A for profit school is controlled by the owner. Parents pay for the school's services just as though they were customers. Examples of this sort of school include Le Rosey in Switzerland, Sylvan Learning Centers, the Nobel Schools, as well as thousands of small nursery and primary schools. The school can be incorporated or a sole proprietorship or some other form of ownership.
The advantage is that the owner truly calls the shots and controls everything. If the parents do not like what is being offered, they can take their children elsewhere. Parental input may be sought and even entertained, but the final decisions and control rest with the owner.
Not For Profit Schools
The advantage is that the owner truly calls the shots and controls everything. If the parents do not like what is being offered, they can take their children elsewhere. Parental input may be sought and even entertained, but the final decisions and control rest with the owner.
Not For Profit Schools
Most private schools seek 501(c)(3) status from the IRS once they have incorporated. This is the non-profit status which exempts the entity from federal, state and local taxes. It also permits the school to accept contributions which are in turn tax-deductible to the extent provided by law.
Some schools are set up so that parents own shares in the corporation. The ownership formulae vary but most seem to depend on the number of children enrolled in the school.
Most schools will have an active board of trustees. The trustees are the mechanism by which the school governed. Depending on how the charter is set up, its powers will be quite extensive. A headmaster at such a school is hired by the board of trustees. This governance mechanism allows the school to outlive its founder, and, all things being equal, last for generations. Examples of this sort of school include Kent School which was founded by Father Frederick Herbert Sill in 1906 and Exeter Academy which was founded by John Phillips in 1781.
Some schools are set up so that parents own shares in the corporation. The ownership formulae vary but most seem to depend on the number of children enrolled in the school.
Most schools will have an active board of trustees. The trustees are the mechanism by which the school governed. Depending on how the charter is set up, its powers will be quite extensive. A headmaster at such a school is hired by the board of trustees. This governance mechanism allows the school to outlive its founder, and, all things being equal, last for generations. Examples of this sort of school include Kent School which was founded by Father Frederick Herbert Sill in 1906 and Exeter Academy which was founded by John Phillips in 1781.
And, no, one kind of school is not any better than another. A school's success is measured intrinsically by its teaching, not its governance.
Read Related Running a School Articles:
-
Hiring A Headmaster
Hiring a headmaster is one of a board of trustee's most important jobs. Here's how one search firm handles the hiring process. -
Keeping In Touch With Your Graduates
Keeping in touch with your graduates is not easy these days. You must communicate via snail mail, web portals and social networks. -
Safe Schools
A safe school does not happen. A safe school is the result of a concerted effort on the part of your school community to have a safe school. -
Starting A School
Douglas Halladay is experienced in starting schools. He offers tips and advice for those of you thinking about starting a private school. -
State Regulation of Private Schools
State Regulation of Private Schools provides a brief description, by state, of the legal requirements that apply to private schools.
Administrative
Issues relating to your back office
-
Are Employees Stealing From You?
Part of a trustee's job is to ensure that sound business practices are in place. Employee fraud occurs all the time. Here's how to prevent it. -
Does Your School Avoid Politics?
Does your school avoid politics? You might want to make sure it does if you are set up as a non-profit corporation. -
Developing A Strategic Plan
Developing a strategic plan is an exercise your school will probably undergo once a decade or so. Read what an expert has to say on the subject. -
School Strategic Planning - How To Ensure Success
Strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future.
Technology
Issues relating to technology in your school
-
Technology Products for Schools
Your community expects the best technology to be in place in your classrooms. Take advantage of the fast moving market which is always coming out with new products at ever lower prices.
All Categories:
Featured Partners:
