Private schools are generally set up in one of two ways: as for-profit entities or not-for-profit (nonprofit) entities. The for-profit version is typically used by either a corporation or a private individual in order to make a profit but not be eligible for contributions that are tax-deductible to the extent provided for by law. Not-for-profit status is what most private schools chose to organize under so that they may make money but also receive contributions that are tax-deductible to the extent provided by law.
What then 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
The way in which a for-profit school is set up is to allow it to be controlled by an owner. That owner could be an individual or group of individuals as is often the case with many pre-schools and some elementary schools. Another form of ownership is a corporation. This often is a corporation owned and operated by a group of local individuals. More typically, for-profit private schools are owned by a corporation that has schools in several locations. For-profit schools are usually in business to make money or turn a profit. They pay taxes on those profits. 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