How can one buy/control a non-profit university?

Hi guys,

I wanted to know if there is any way a private individual can buy/control a non-profit university. IIRC, on the PBS special dealing with for-profit colleges, in one of the deals the for-profit owner talked about buying a non-profit, and turning it into a for-profit if it does not perform. Does anyone know how that is done?

What is the corporate/legal structure that allows that? Any info would be appreciated.

 

See this 2005 story: "Nonprofit Colleges as Takeover Targets".

If you want to take over a non-profit school, you will probably have to convince the trustees that continued non-profit operation is economically unfeasible, and that they should sell the school to you as the best available alternative:

A well known example is the former Mount St. Clare College / Franciscan University of the Prairies, a non-profit school in Iowa. It fell into financial difficulties, was sold to Bridgepoint Education, and then re-established as for-profit Ashford University.

Successful non-profits are rarely, if ever, converted to for-profit operations.

 

What I was thinking was not taking a non-profit and turning it into a for-profit, but rather keeping it as a non-profit, but having operational control of it. Think of it as taking some of these failing colleges, gaining control of them, and implementing a WGU/Excelsior/TESC/COSC model, or some other innovative DL model.

The issue of the investor/benefactor having control is paramount. My personal experience with university administrators is that they tend to be reluctant to make radical changes. I can imagine a situation where some wealthy benefactor is willing to donate money to implement his plan, but being unwilling to risk the trustee board saying "Thanks for the cash, but we are not going to implement things the way you want them."

 

Trustee boards tend to be composed of wealthy benefactors. Just let the current board members know that you are prepared to donate lots and lots of money, but expect a seat on the board in return. If enough cash is involved, you may be able to appoint some allies to the board as well.

Your odds of success will vary, depending on the amount of money that you can donate, the extent of your political skills, and the financial status of the failing non-profit that you target.

 

The University of Bridgeport has been through a bit of a case study.

 

First, get a skagillion dollars . . .

 

Remember that major changes, and certainly "radical changes," to academics, governance, finance and operations, etc., will all be subject to review by your friendly regional accreditor.

 

Why do I get a mental picture of you sitting in your subterranean lair, on speaker-phone to the university trustees, demanding they cave to your demands for reform under pain of your space "la-ser" being used to blast the faculty lounge? (Also, something about one (pinky-to-mouth) million dollars.)

You don't happen to have a doctorate in Evil, do you? RA?

 

Thanks for the link. It was quite helpful.

 

Here's another example:

Southern Virginia University - Wikipedia, the free encyclopedia