ED plans to stop nonprofit conversions!

Discussion in 'General Distance Learning Discussions' started by AsianStew, Sep 16, 2022.

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  1. AsianStew

    AsianStew Moderator Staff Member

    It's great that the Department of Education is trying to prevent these conversions from For Profit to Non Profit as just the "conversion" has changed but their business practices remain (largely) for-profit. Some schools are referenced in the article, Keiser U, Grand Canyon U, and also mentions other colleges are trying to mimic Purdue University's success...

    Link: Education Department plan to squash sham nonprofit conversions draws mixed response | Higher Ed Dive
     
    AsianStew, Sep 16, 2022
    #1
  2. Rich Douglas

    Rich Douglas Well-Known Member

    If compensation to the sellers is based--in part or in whole--on the revenues of the newly-designated not-for-profit school, then it is still acting like a for-profit school.
     
    Rich Douglas, Sep 16, 2022
    #2
  3. TEKMAN

    TEKMAN Semper Fi!

    The idea of Grantham University, Ashford University, and Kaplan University work around the process of for-profit to non-profit because it is hard to do the conversion. I wonder when the University of Phoenix will become Arizona State University Global Campus (asugc.edu) and American InterContinental University will become University of Illinois Global Campus (uigc.edu). :D
     
    TEKMAN, Sep 16, 2022
    #3
  4. sideman

    sideman Well Known Member

    This is a good thing. And not only to evaluate whether for-profits are trying to "game the system", but to also make sure that some non-profits aren't tempted to abuse their non-profit status as well.
     
    sideman, Sep 16, 2022
    #4
  5. SweetSecret

    SweetSecret Well-Known Member

    I highly suspect that means that the next move will be for many for profit schools to mimic Walden U in seeking B-corp status.
     
    SweetSecret, Sep 16, 2022
    #5
  6. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    If there were really such a big problem with non-profit conversions benefitting former shareholders, then why wouldn't whatever new regulations be imposed on them apply to all firms, not just universities? Shouldn't this be coming out of Commerce or Treasury?

    Besides, this bit here highlights how the real motivation here is anti-profit ideology:

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    SteveFoerster, Sep 16, 2022
    #6

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