Choosing a senior living community for yourself or a loved one is a life-changing decision. When comparing one community to another, one factor that’s often overlooked is whether the organization that owns the community is for-profit or not-for-profit.
For-profit communities are accountable to owners and investors who want a return on their investment. While they may provide quality services and amenities, a portion of their profit margin goes to shareholders and equity partners. For-profit organizations, by definition, exist primarily to generate profits for stakeholders.
Not-for-profit communities, on the other hand, operate for the benefit of residents and all “profits” are reinvested in the community and its services to benefit residents. Not-for-profit communities manage their resources in accordance with their mission. They aren’t driven by daily pressure to increase their bottom line for owners and investors.
More personalized care
Not-for-profit senior living organizations typically have a higher staff-to-resident ratio. With more team members responsible for fewer residents, staff can take the time to provide more personalized care. This benefits residents as well as team members who can find greater fulfillment and satisfaction in their work.
When staffing levels are cut, it’s difficult for team members to provide quality, personalized care. In a study of the five largest for-profit U.S. nursing home chains that include assisted living, rehabilitation, home health and other services in their portfolios, all had lower staff-to-resident ratios than the national average. The communities that reported the highest profit margins received the lowest quality ratings.
Numerous other studies show similar findings:
- A May 2024 review found that non-profits were more likely than for-profits to staff at or above the minimum and total requirements for nurse hours per day.
- A 2018 study found that residents in for-profit nursing homes were almost twice as likely to experience adverse health problems compared to not-for-profit homes.
Benevolent Care
Many not-for-profit senior living communities offer benevolent care. As part of their charitable mission, a not-for-profit community may offer financial support to residents who have outlived their resources through no fault of their own. Secure in the knowledge that they’ll never be forced to move from their home for financial reasons provides lasting peace of mind for residents and their families. In addition, many residents of not-for-profit communities appreciate living in a place that embodies a culture of generosity and goodwill.
Local Oversight
Not-for-profit communities are overseen by a board of directors who volunteer their time and talents. Board members are recruited for their expertise in a variety of disciplines such as finance, business, law, hospitality, healthcare and theology. They’re also familiar with local community needs.
With no expectation of financial gain, board members are committed to ensuring the community remains true to its mission, plans thoughtfully for the future and manages financial resources effectively.
Freedom to innovate
Spared from shareholder pressure to increase profits, not-for-profit organizations are free to innovate. As a result, not-for-profit communities are often the drivers of change in the industry — embracing holistic wellness programs, pioneering intergenerational initiatives, incorporating biophilic design and creating more home-like environments for assisted living and memory support.
At The Baldwin, our small-home approach to assisted living and memory support is unique in southern New Hampshire. Orchard Inn at The Baldwin features four specialized households accommodating just 10 residents each. The intimate size and design of our households encourages friendship and connection. Rather than having to adapt to prescriptive schedules, residents enjoy greater autonomy to follow their own schedules and pursue their interests, knowing help is always available and nearby.
Discover the not-for-profit difference for yourself.
As a not-for-profit organization, The Baldwin’s top priority will always be doing what’s right for residents. To learn how we bring that promise to life, visit the About page on this website, use the Contact Us form, or call us at 603.699.0100.