Nonprofit?

[ame2entre]

I was checking out the new Washington State DO school website, www.pnuhs.org and noticed it said it's going to be nonprofit. Are all private schools "nonprofit"? What exactly does that mean?

 

[supersash]

from what i understand, most private schools are out there to profit, while many public schools are nonprofit. so this new school may be an exception.

the basic difference is that in a nonprofit, they are not attempting to make money, they only have to pay their over head.

hope that made a little sense! i'm too hungry to find links or anything else helpful

 

[ame2entre]

I understand that most school are there to make profit. From what I understand also even state schools make a good profit, they just require lower tuition/expenses because they get money form the government. This is why they are required to take a majority from in-state. I am just wondering how this school will be different then others.

 

[DragonWell]

All existing osteopathic schools, public and private, are "nonprofit", although there is talk that the new Rocky Vista school will be "for profit". (I have yet to see this in writing.)

My understanding is that "non-profit" mostly has to do with tax status and financial organization of the school more than anything else.

 

[scpod]

Are all private schools "nonprofit"? What exactly does that mean?

"Profit" implies that there is an owner(s) who expects financial gain from the operation of the entity. It is extrememly hard to make a "profit" from a medical school simply because tuition only pays a small part of your medical education. Schools rely on many sources to provide your education, such as interest from the endowment, alumni contributions, medical clinics, research grants, donations, fundraising activities, government money, etc. Schools that have really high tuitions generally lack in availability of these extra funds and make up for by increasing tuition. Several of the offshore schools ARE "for profit" schools, however, and you may pay more than $250,000 to them for your four-year education.

 

[IDBasco]

Simply, a for profit company pays its owners some or all of what is left after all expenses have been paid. Non-profits come in various types, but basically they don't pay any profit to the owners and instead retain earnings after all expenses. Don't assume that simply because an outfit is non-profit that it is not making some or even substantial income beyond what its expenses are. Many non-profits have loads of cash.

There are certain non-profits that also pay no federal income tax. This site is an example of that type. Look at the top right of your screen. See that 501C3? Thats what that means.