The Difference Between For-profit and Not-for-profit Life Plan Communities
Choosing a senior living community is one of the most important decisions we can make, so get informed about the not-for-profit difference when evaluating your options!
“The thing I like about LEC is that we are intentional about fulfilling our mission of providing exceptional everyday experiences in Christian community, we don’t just talk about it. As we work through our strategic plan, everything we focus on has to do with helping our associates, residents, or future residents.”
-Dan McManus, Executive Director of The LEC Foundation
Why the Not-for-profit Difference Matters for Seniors
When deciding on a senior living community, older adults find that the not-for-profit difference provides a lot of benefits:
- Greater financial assistance, stability, and transparency
- Higher quality of care, services, and staffing
- Resident-centered mission
- Revenue is reinvested back into the community
- Stronger social connections, community, and purpose
But how is this all accomplished? Here are the three key differences from for-profit organizations that make a not-for-profit life plan community stand out.
1. Ownership
For-profit communities operate as income-generating businesses, so if you can no longer afford to live in their community, you may need to move.
Not-for-profit communities are overseen by their board of directors, who:
- Lives within the area and connects the community to local resources
- Protect and oversee the use of the organization’s resources as part of their fiduciary responsibility
- Support management in developing the organization’s strategic plan
- Volunteer their time and expertise to support the community in providing quality services
2. Finances
For-profit communities are driven to generate financial returns for the owners or shareholders, so their decisions are often made based on investor expectations and profit margins. While they may offer lower initial entry costs, they often charge additional fees for amenities, services, and levels of care not included in the package.
Not-for-profit communities are often financially sound, as they must reinvest in the community for the benefit of those residing there. The revenue enables them to:
- Adapt and modernize housing accommodations
- Enhance health services
- Expand programs that their charitable foundation, if they have one, can support
- Maintain their amenities and facilities
- Provide more comprehensive programs and services
3. Mission, Vision, and Values
For-profit communities can make economic decisions that may not align with the preferences of their residents.
Not-for-profit communities are guided by their mission, vision, and values to make decisions that will improve the experience and quality of life for their residents:
- Mission: This defines the organization’s purpose, who they serve, what they do, and how they do it. Not-for-profits ensure ethical management and financial transparency to provide better services and experiences.
- Vision: This defines what the organization hopes to become or achieve in the long term. Not-for-profits aspire to create a community where people can lead fulfilling lives without worry.
- Values: These fundamental beliefs and principles define the organization’s character and guide its behaviors, culture, and decision-making. Not-for-profits are often supported by a religious group or affiliation that may also provide a chapel, chaplain, and pastoral care services, which are invaluable for guidance and support, even for those with differing beliefs.
Discover the not-for-profit difference with our free ebook, The Road to Aging Well!
At Life Enriching Communities (LEC), we’re committed to ensuring patrons feel well-equipped to plan their future and age how they wish. Explore more resources on senior living or contact us today to learn more about our legacy of services and programs that bring meaning and purpose to every stage of life.