Century Foundation research finds fault with for-profits converting tax status
- New research from the Century Foundation argues that one of the primary reasons for-profit colleges convert to nonprofit status is to avoid regulation.
- The paper also accuses these institutions of impropriety for paying the colleges’ owners to sit on the boards of trustees.
- The Chronicle of Higher Education reports the paper’s author recommends the IRS put a halt to similar conversions while it develops a better review system and considers auditing existing nonprofits that converted.
The Association of Private Sector Colleges and Universities has come out against the research, saying the researcher is ideologically opposed to for-profit colleges and suggesting that clouds his objectivity. The New York Times published a major exposé in March about for-profit colleges that have converted, chronicling the millions made by school leadership during and after the transition.
The Chronicle of Higher Education