Differences Between For-Profit and Non-Profit Communities
Deciding where you want to spend your later life-years can be difficult. You want to find a supportive living community in Oklahoma City that feels like home and where you can be yourself. It may be that you are looking for a community that offers additional care for specific health needs.
One thing you may not be aware of is the importance of knowing whether a Continuing Care Retirement Community (CCRC) operates as a for-profit or non-profit entity. For-profit and non-profit communities have different priorities that can impact residents. While the differences might not be visible upon first glance, they become more apparent after doing some deeper digging.
Non-Profit vs. For-Profit Supportive Living Communities
Let’s look at the key differences between how for-profit and non-profit independent living communities operate.
All supportive living communities collect fees for the care of residents. Fees cover the cost of upkeep for the property, equipment, furniture, as well as expenses related to providing necessary medical care to community residents. The differences between for-profit and non-profit supportive living organizations come into focus when it comes to how they administer their revenue.
For-profit communities are held accountable by their owners, who can be either private investors or shareholders. That can mean that turning a profit sometimes takes priority over other concerns. There may also be a board of directors in charge of governing decisions.
Non-profit communities must register as a 501(c)(3) public benefit corporation under the federal tax code. They are often referred to as tax-exempt organizations for that reason. These non-profit communities receive a preferred tax status excluding them from paying income taxes.
Many non-profit supportive living communities also gain exemptions from paying local property taxes and can even receive tax-deductible donations. None of their profits can be directed toward any private individual or shareholder, meaning their primary focus remains on the resident experience.
Most for-profit communities operate as corporate business entities whose purpose is to maximize the returns of their investors. Non-profit communities are often run by faith-based groups or fraternal organizations. They have a core mission that drives how they deliver services to residents. Non-profits put their resources back into their supportive living communities so members, not shareholders, reap the benefits.
The Benefits of a Non-Profit Supportive Living Community
You and your relatives should read the contract terms of any independent living community before making a commitment. The agreement should outline the circumstances around which it may be terminated, and the type of services residents should expect during their stay. Due diligence is key to finding the right community in which to spend your later life years.
As you compare, keep in mind the operating differences of for-profit and non-profit communities. Typically, individuals find that non-profit options provide more benefits, including:
1. Sense of Security
Many find a sense of comfort from the idea of a non-profit community. They know the community will look after them without worrying about outside shareholders or profit goals. The mission-driven philosophy that forms the foundation of the community also means that some communities offer help for residents that fall on hard times.
While some for-profit communities do offer protections against eviction, you may find yourself in a challenging situation if you can no longer afford your stay. That is where the terms of your contract could prove crucial if you end up in these circumstances.
2. Less Chance of Hidden Fees
The fee structures of for-profit and non-profit communities can seem similar at first glance. However, a deeper dive into the rates of for-profits can reveal additional charges for services like:
- Medication management
- Daily assistance for tasks like bathing or getting dressed.
Non-profit communities may have similar fees, but many also offer Life Care options that guarantee a continuum of care and protect residents from rising care costs.
3. Support, Wellness and Enrichment Programs
Studies have shown that non-profit communities tend to have better ratios when it comes to staffing for the number of residences. Studies have also demonstrated non-profits to have a lower rate of deficiencies noted than for-profit communities. Those ratios help non-profit communities provide programs that elevate residents’ lifestyles, including enrichment and wellness programs.
4. Familiarity with Affiliation
Non-profit supportive communities run by faith-based groups or other fraternal organizations do not exclude new residents if they do not adhere to the same faith. Those who do subscribe to those tenants often find additional comfort in that setting.
For example, Christian members of the Concordia community have the option of attending Morning Devotional with our staff members. They also have the opportunity to participate in spiritual support meetings to connect through the Christian faith. Those with an alternative belief system can also feel free to attend and participate or pursue other interests.
5. Less Crowded Communities
Because non-profits do not look at revenue as a primary driver, they focus on providing an environment that allows them to deliver the best living experience for residents. They are not looking to fill space or collect additional fees, meaning community members have the chance to pursue their interests and take advantage of expanded programs and amenities.
Why Concordia Ranks High Among Oklahoma City Supportive Living Communities
Concordia offers community members their choice of supportive living environments. They can opt to stay in an apartment consisting of one or two-bedroom floor plans, or those wanting more space can choose to live in one of our patio homes with a garage attached.
Each living space comes standard with the following amenities:
- All-electric, fully equipped kitchens, including an oven range and garbage disposal
- Washer and dryer
- Independently controlled heating and air conditioning
- Spacious closets
Our residents can also choose more comprehensive health services, including:
- Independent Living
- Skilled Nursing and Rehabilitation
- Assisted Living
- Long-Term Nursing Care
- Memory Care
Our Beliefs and Drive
Concordia’s mission is founded on Christian beliefs laid down by ten local Oklahoma Lutheran Church organizations. We believe in providing quality care and services in a faith-based and welcoming environment.
We tailor our community to those who are at least 62 years old. We want residents to feel nothing but freedom and comfort as they enjoy the life they deserve. Our staff always looks out for every community member’s well-being and makes sure all individual requirements are met every minute of the day.
Experience the feeling of living in a supportive living community based on the true meaning of Christianity. Schedule a tour of our Oklahoma City residences or have an in-depth conversation with our Concordia community professionals by calling (888) 552-0585.
Retirement & Planning