Interrelated entities: Form following function?

A growing number of colleges and universities are experimenting with corporate structures that include both not-for-profit and for-profit components. These experiments are one way to respond to the increasing complexity of programs, infrastructure and compliance requirements. When the path to effective execution is blocked by traditional not-for-profit structures or cultural norms, a for-profit structure could be the way to go.

Partnering between for-profit and not-for-profit entities has occurred often, mostly when a not-for-profit institution outsources a function such as internal auditing or food service. But new structures are emerging; now, the relationship often includes some form of actual ownership or shared decision-making. Read the full article found in Grant Thornton’s State of Higher Education in 2019 report for more information on establishing creative new governance structures by forming or joining with a profit entity.