A Quantitative Analysis of the Effects of Postsecondary Institution Conversions from Not-For-Profit to For-Profit

Abstract

This study highlights the changes that have occurred at postsecondary institutions after conversion from not-for-profit to for-profit control. Using Delta Cost Project Data and a pre-post study design with a control group of not-for-profit institutions that did not convert, comparisons are drawn. The findings suggest that institutions that convert experience greater enrollment growth, a decline in fulltime employment levels per full time equivalent (FTE) student, no change in average expenses per FTE student, a decrease in total revenue, a decrease in Pell Grants received, a decrease in tuition and fees revenue, and a decline in average subsidy per student post conversion. These findings are critical to the creation of informed policy decisions regarding institutional conversions.

An experimental test of the impact of corporate social responsibility on consumers' purchasing behavior: The mediation role of trust

“…He attributes it to the trust engendered by the nondistribution constraint that characterizes the nonprofit organizations. It has been argued that the nondistribution constraint serves to increase trustworthiness of nonprofits by signaling to “purchasers” that nonprofit managers have no incentive to cheat on service delivery (Garrity & Fiedler, 2016; Valentinov, 2009). This rationality can be extended to companies that are committed to CSR activities.…”

Nonprofit organizations in between the nonprofit and market spheres: Shifting goals, governance and management?

“…thereby bolstering the NPO's ability to attract qualified staff (Dart, 2004) (Guo, 2006) -Increases organizational capacity to attract and retain professionals (Guo, 2006;Khieng & Dahles, 2015) -Business-and market risk (Toepler, 2006) curvilinear relationship between commercial income and organizational survival (Gras & Mendoza-Abarca, 2014) Conversion (change of legal status from nonprofit to for-profit) -Risk of cherry picking (competition for "affluent" clients, avoidance of costly clients) (Gurewich, Prottas, & Leutz, 2003) -Decrease in organizational income (Garrity & Fiedler, 2016) -Increase of profitability (Joynt, Orav, & Jha, 2014;Mark, 1999;Shen, 2003) -Lower staffing level (Garrity & Fiedler, 2016;Mark, 1999;Shen, 2003) -Increase of workplace participation (Anderson, Allred, & Sloan, 2003) Corporatization (introduction of corporate managers/ knowledge within nonprofit governance mechanisms in order to improve organizational functioning)…”