Every senior living community is unique in its character, amenities, and the remarkable people who live and work there. One differentiating factor of senior living communities that can play a significant role in the day-to-day lives of older adults is whether the organization operates as a non-profit or for-profit. The benefits of non-profit senior living communities can be felt in the quality of care offered, the strength of the community culture, and even an organization’s financial stability.
Understanding the ins and outs of each business model can help you narrow down your senior living options and make the best choice for you or your loved one.
What are the Differences Between For-Profit and Non-Profit Senior Living Communities?
Both non-profit and for-profit senior living communities can offer a range of one or more senior living and care options, including 55+ active adult communities, independent living, assisted living, memory support, short-term rehabilitation, long-term skilled nursing care, in-home care, and adult day programs
While residents of both non-profit and for-profit senior living organizations pay a monthly fee, the way those funds are managed can be quite different.
For-Profit Senior Living
As private businesses, for-profit senior living communities are accountable to their owners, shareholders, and/or the regional or national businesses to which they belong. For-profit businesses are, by nature, designed to make a profit. Though they may provide quality care, services, and amenities, it is possible that the bottom line will be prioritized over care and services. According to the CDC, nearly 82% of assisted living communities in the U.S. operate as for-profit businesses.
Non-Profit Senior Living
Non-profit senior living organizations are often associated with a specific group, cause or broader community benefit, such as a religion or cultural group, and many are focused on a guiding organizational mission. Non-profit communities also charge residents monthly fees, but with the purpose of reinvesting funds back into the organization and its operations. Funds may be used for team member pay, building improvements, programming, and more. Any profits made above and beyond operational expenses directly benefit the organization, rather than owners or shareholders.
The Benefits of Non-Profit Senior Living
Aside from the foundational differences in the way funds are managed between non-profit and for-profit communities, you may feel more at ease knowing your loved one’s chosen community is mission-driven, rather than influenced by shareholders or a chain.
Many people will choose a non-profit senior living community solely because their fees stay within the community or organization. Additional benefits of non-profit senior living communities include:
1. A Driving Mission
For many, feeling a connection toward a non-profit organization’s mission or affiliation is one of their highest priorities when choosing a senior living community. For instance, a non-profit aligned with the values of a religious organization can provide care and services based on that religion’s tenets, while also being welcoming of and open to all faiths and beliefs.
The same goes for non-profits affiliated with other groups or driven by a specific mission. Older adults hoping to maintain or deepen their traditions may seek these organizations and services that aren’t always available in for-profit communities.
2. A Governing Board of Directors
A non-profit is overseen by a board of directors, which is responsible for the organization’s legal, financial, and ethical governance, and the hiring of the CEO. Board members’ varied experience and skill sets help guide the organization’s success in alignment with its mission.
Board members of non-profit senior living communities will listen to residents’ feedback, develop relationships with local businesses and organizations on behalf of the community, and help keep the older adult community connected to the community at large.
Clermont Park’s parent organization, Christian Living Communities (CLC), is overseen by an all-volunteer Board of Directors, with each member being thoughtfully selected for their unique experiences, skill sets, and commitment to serving older adults today and in the future.
3. Varied Funding Sources
An organization’s non-profit status allows it to receive donations from various sources. Some non-profits may also be eligible to receive government grants related to their efforts to further a cause or public benefits. Through these various sources of funding, non-profit senior living communities may be able to provide additional support for residents, team members, and the community. For example, long-time residents who no longer have the financial resources to cover their care may receive a cost reduction through donors’ generous contributions.
In many ways, Clermont Park is able to pursue and sustain our mission and values because of such support. The gifts of CLC supporters have funded countless programs and projects that have enriched the lives of Clermont Park residents and team members. These enhancements include an Eldergrow Horticultural Therapy Garden, a variety of life-enriching and Active Minds learning classes, performances from the LaMont School of Music, and team member critical needs funding, scholarships, and respite retreats.
4. Staffing & Individualized Care
Another benefit of non-profit senior living communities is staffing. Staffing can play a significant role in the quality of care offered by assisted living, memory care, and skilled nursing communities. A for-profit organization looking to maximize profits may consider that employing fewer healthcare professionals will lower expenses. At a non-profit senior living community, the amount paid in monthly fees goes back to the community, including toward the salaries of care partners.
Understanding team member-to-resident ratios can be a helpful guide when researching communities. Better staff-to-resident ratios can provide care partners and residents opportunities to spend additional time together, building meaningful relationships and experiencing a greater sense of well-being. This additional time can also equate to more individual care that is centered around knowing residents on a deeper level.
5. Focus on Community
The culture and social fabric of a community is just as important to overall well-being as quality care. Mission-driven non-profit organizations can bring together residents, team members, and board members who are aligned in their personal values. These shared values can be a strengthening force, deepening connections and the culture of the community as a whole.
Non-Profit Senior Living at Clermont Park
Clermont Park is a non-profit senior living community that provides high-quality, compassionate care for older adults. We believe in the power of community, citizenship, and embracing each person’s unique contributions. Our communities offer an engaging lifestyle for all residents, where they can live with dignity and respect.
To learn more about Clermont Park, contact us today.
