Grand Canyou University application for new non-profit corporation denied by HLC

Discussion in 'General Distance Learning Discussions' started by Shawn Ambrose, Mar 18, 2016.

  1. Shawn Ambrose

    Shawn Ambrose New Member

  2. Koolcypher

    Koolcypher Member

    Last edited by a moderator: Mar 18, 2016
  3. Rich Douglas

    Rich Douglas Well-Known Member

    No kidding. I'm not clear on GCU's motivations in this matter, but I'm not surprised that the HLC decided to retain jurisdiction over all of the university's functions, not allowing them to split off the administrative (read: sales) into a separate function not under its scrutiny. Especially since recruiting um, er, indiscretions have been the bane of many for-profit schools, many of which are accredited by....wait for it....the HLC. Also, this could allow the part that's outside to continue to function as a for-profit recruiting entity, providing a service to the not-for-profit teaching university. But, in reality, they would be one operation. Based on the limited information available, it looks like the HLC got it right. Your move, GCU.
  4. Kizmet

    Kizmet Moderator Staff Member

  5. Phdtobe

    Phdtobe Well-Known Member

    Your analysis is right on. The for profit division or whatever it is will invoiced the nfp division for an amount equaling the nfp's revenue. There will be no profit in the nfp but the owners of the for profit side will be laughing all the way to the bank. It is a farce. Good decision by the hlc.
  6. Kizmet

    Kizmet Moderator Staff Member

    I just started seeing television ads for GCU. Normally I only see ads for SNHU but in the last week I've seen ads for both GCU and Arizona State. Is this a "time of year" thing?
  7. Neuhaus

    Neuhaus Well-Known Member

    But this is pretty much what Keiser University did. The university is non-profit but they outsourced certain functions to for-profit entities operated by the family. I believe a newspaper complained to the IRS but there is no rule that says your non-profit cannot contract work to your for-profit unless they are charging about competitive pricing (i.e. your for-profit is selling $50 rolls of toilet paper to the school).

    Also a lot of non-profit and public schools are starting to outsource their recruitment and DL course delivery to for-profit entities. Villanova, Notre Dame, Michigan State, USF, New England College and my very own University of Scranton all contract with Bisk Education. Search for the UofS online Masters and you come to a Bisk operated recruitment page. Fill out the form and you get contacted by a Bisk counselor (NOTE: The MBA isn't delivered through Bisk).

    I get that HLC is being a bit gun shy because they are seen, among the RAs, as a breeding ground for for-profit schools. But this seems to be more of the double standard at work. If a for-profit wants to become a non-profit which outsources recruitment and course delivery to a for-profit, that's wrong. But it's OK for the public and non-profit schools to do the exact same thing with impunity.

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