Are you looking at senior living communities, also referred to as retirement communities, for yourself or a loved one? If so, you probably have found that there are many options and things to consider. Whether looking for active independent living, assisted living, skilled nursing, or memory care, there is one question you should ask. That question is, “Does this community operate as a for-profit or not-for-profit senior living organization?” The answer can make a significant difference in the quality of the residences, services, amenities, and culture. It also tells you who is at the helm. For many seniors looking into different community options, the advantages of a not-for-profit senior living community tip the scales.
Both types of communities may look similar on the surface. However, there are fundamental differences between for-profit and not-for-profit senior living communities that you will want to know.
What is a For-Profit Senior Living Community?
Like any private business, a for-profit senior living community is obligated to its shareholders. Their objective is to earn a profit. Many for-profit communities belong to large national chains. For that matter, some own hundreds of properties with thousands of residences. Today, more than 80 percent of senior communities are for-profit, either privately owned or part of a much larger chain. While these communities might offer quality service and amenities, their core function is to earn a profit from rent and fees.
What is a Not-For-Profit Senior Living Community?
By definition, a not-for-profit senior living community must reinvest any profit back into its central mission. It is also allowed to raise money from individual and corporate donors, whose gifts are tax deductible, and to apply for certain government and private grants.
What are the advantages of Not-For-Profit Senior Living Communities?
Many of the differences between not-for-profit retirement communities and for-profit ones are quite subtle. As a member of a not-for-profit community, you may feel better knowing that the leadership is motivated by a mission. This means they are not driven by financially satisfying owners and investors. You will also have the peace of mind that comes with knowing that your well-being will always come before profit.
Here are a few more ways that not-for-profit senior living communities, like Convivial St. Pete, coming soon to St. Petersburg, Florida, benefit members.
Greater Sources of Funding
The Internal Revenue Service (IRS) grants tax-exempt status to not-for-profit organizations because they further a cause or benefit the public. This allows these organizations to accept donations from a wide range of sources. Funding like this makes it possible for a not-for-profit senior living community to keep its fees lower than it could otherwise. This means it can even extend financial support to members in hardship situations.
The Governance of a Board of Trustees
A not-for-profit is run by a board of trustees or directors. This group of individuals have pledged to uphold sound, ethical, and legal governance. They put the organization’s mission and members’ well-being first. The board members interact with community leadership and members and listen to their input. It also works to form fruitful relationships with local governments, businesses, and other organizations to connect the senior living community with the greater community area.
Emphasis on Community
A not-for-profit senior living community usually flourishes into a genuine community with the board’s leadership and focus on their mission. Members, staff, and board members come together through their shared values. Additionally, not-for-profit organizations rarely change ownership. Unlike for-profits, which are often forced into exit strategies or recapitalizations to satisfy shareholders’ interests, not-for-profits are designed for stability.
Why Choose the Convivial St. Petersburg Not-For-Profit Community?
We are a not-for-profit community because we want to fully serve our members and our community. At Convivial St. Petersburg we aim to be the senior living community of choice. We are chosen by seniors who want to spend their lives in an intellectually, physically, and spiritually rich environment. To learn more about life at Convivial St. Petersburg or to schedule a personal visit, call 941-220-5219 or Click Here.