When it comes to senior living solutions, there is no shortage of options. From location to mission and values to varying care and lifestyle levels, there are many choices to make during the research process. Something else that you may run across during your search is for-profit vs. non-profit status. When you see a community tout itself as a non-profit, it might create some questions on your part. However, it is a model that offers plenty of benefits to its residents (and its staff!). If you are considering a senior living option for yourself or your loved one, it is important to understand just exactly what exactly a non-profit senior community is.

Below are some of the common questions associated with non-profits.

How Does a Non-Profit Community Work?

At a surface level, non-profit communities by and large function the same way as a for-profit community. In exchange for periodic rent payments and move-in fees, seniors can live there, receive the necessary level of care, enjoy the amenities, and so on. They subsequently collect revenue and use it to cover their operating costs (payroll, utilities, etc.). After covering these costs, non-profits take the additional revenue (i.e., profits) and put them right back into the community in ways that make life better for residents. These may include:

  • Campus improvements that can be enjoyed by residents
  • Maintenance projects
  • Lower rent costs
  • Better cuisine
  • New technology for staff and residents alike
  • Bigger activities budget

Who Decides How Profit is Allocated?

Non-profit communities should decide how to allocate additional revenue using a volunteer Board of Directors. Volunteers have no way to gain financially from these revenues. As a result, they have a more objective vision of how profits can be used to improve the community and the lives of its residents. This differs from for-profit communities which often use excess funds for things like executive bonuses, shareholder dividends, investor repayment, and so on. This is not to say for-profit communities do not have good intentions, simply that they operate much differently.

Is a Non-Profit Community a Charity?

Generally, no. While most charities are non-profits, many non-profits are not charities. They operate businesses such as senior living communities by charging rent in exchange for their services. However, their non-profit status leads them to put money towards improving their communities overall, an endeavor which is aided by certain tax exemptions which free up even more funds. These improvements, many of which are listed above, help them run a better business by better meeting the needs of those they serve. They are also able to hire more experienced aides and staff members, leading to improved care for residents and smoother operations. This can also reduce employee turnover, meaning that aides tend to stay happily in their positions. This not only improves care, but allows residents to forge meaningful long-term relationships with staff members as well as their neighbors, improving their senior living experience overall.

If you would like to learn more about a multi-level, non-profit Ontario senior living community dedicated to making life the best it can be for its residents, contact Inland Christian Home. Call us today at (909) 983-0084 or reach us online.