When looking at senior living communities for yourself or a loved one, there are many great options and many things to consider. Whether you’re looking for active independent living, assisted living, skilled nursing or memory care, a key consideration is whether the community operates as a for-profit or not-for-profit senior living organization. It can make a significant difference in the quality of the residences, services, amenities, and culture. For many seniors looking into different community options, the advantages of a not-for-profit senior living community tips the scales.
While both types may look similar on the surface, there are some fundamental differences between for-profit and not-for-profit senior living communities.
What is a For-Profit Senior Living Community?
A for-profit senior living community, like any private business, is obligated to its shareholders to earn a profit. A good number of for-profit communities belong to large national chains—some owning hundreds of properties with thousands of residences. According to the Centers for Disease Control and Prevention, more than 80 percent of senior communities are for-profit. They are either privately owned or part of a much larger chain. While they might offer quality services 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. They are 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 Retirement Communities?
Many of the differences between not-for-profit retirement communities and for-profit senior communities are subtle. As a resident/member of a not-for-profit community, you may simply feel better knowing that the leadership is motivated by a mission, rather than by financially satisfying owners and investors. You’ll also know that your wellbeing will always come before profit.
Here are a few more ways that not-for-profit senior living communities, like Jacaranda Trace, in Venice, FL, benefit members.
Greater Sources of Funding
The IRS grants tax-exempt status to not-for-profit organizations because they further a cause or benefit the public—allowing them to accept donations from a wide range of sources. This funding makes it possible for a not-for-profit senior living community to keep its fees lower than it could otherwise, and even extend financial support to residents/members with hardship situations. This means that long-time members who suffer an unforeseen financial change don’t have to worry about having to leave their community.
The Governance of a Board of Trustees
A not-for-profit is run by a board of trustees or board of directors. Those individuals have pledged to uphold sound, ethical, and legal governance—putting the organization’s mission and members’ wellbeing first. The board members interact with community leadership and residents/members and listen to their input. The board also works to form fruitful relationships with the local governments, businesses and other organizations. These relationships help to solidly connect their community with the community at large.
Reinvestment into the Community – Emphasis on Community
A not-for-profit senior living community can flourish into a genuine community with the board’s leadership and focus on a mission. Members, staff and board members come together through their shared values. Additionally, not-for-profit organizations rarely change ownership. This is not always the case among for-profits. For-profits are often forced into exit strategies or recapitalizations to satisfy shareholders’ interests.
Why Choose the Jacaranda Trace Not-For-Profit Senior Living Community?
We are a not-for-profit community because we want to fully serve our members and our community. At Jacaranda Trace, our aim is to be the senior living community of choice for seniors who want to spend their lives in an intellectually, physically, and spiritually rich environment. To learn more about life at Jacaranda Trace, or to schedule a personal visit, call 941-408-2050 or Click Here.