When researching retirement options, many people are curious as to the difference between a not-for-profit and a for-profit retirement community. This is an essential question among those who are considering Life Plan or continuing care retirement communities (CCRCs).
What Are For-Profit Retirement Communities?
In the past several decades, for-profit retirement communities have become increasingly popular. In a for-profit retirement community, the community is run like a business and regularly reports to a board and/or shareholders. Profits are generated from entrance fees in addition to rental costs from residents and, typically, outside investors. Even though for-profit communities focus on generating revenue, they can also invest time and money into desirable amenities and care for the residents of their communities.
What Are Not-For-Profit Retirement Communities?
Not-for-profit retirement communities are registered as 501(c)(3) charitable organizations, which means that any “profit” that was not spent on necessary expenses must be reinvested into the community, helping to develop improved services, care and amenities for the residents of the community. These not-for-profit communities also must follow strict government guidelines to ensure that they are exhibiting sound fiscal practices.
As a non-profit, such as The Buckingham, communities are guided by a mission-centric focus. At The Buckingham, our mission is to create exceptional senior living experiences. For us, this means a vibrant community for older adults that inspires wellness, independence, joy, security and enriches the lives of those around them.
An added benefit of not-for-profit retirement communities is that they typically have a benevolent fund, which can help support your time in the community should you lose your assets through no fault of your own. Not-for-profits are also required to disclose their financials publicly each year, which ensures financial transparency and peace of mind. You can rest easy knowing that your money is going to a healthy, enduring organization.
Which Is Right for Me? A Not-For-Profit or For-Profit Community?
There is no one-size-fits-all answer for which type of community is right for you. This decision is a highly personal one and will depend on your individual preference along with what communities are available in your area. Research has shown that operating costs-per-resident tend to be similar at for-profit versus not-for-profit communities, and as such, you can feel confident in relying on your initial instincts about a community. If you visit a retirement community and can see yourself feeling at home there, the question of not-for-profit versus for-profit doesn’t need to automatically rule a community in or out. What’s important is that you ask your contacts pertinent questions and learn about the community’s operating structure and financial health. Choosing a retirement community is a deeply individual experience.
The Buckingham, a Not-For-Profit Life Plan Community
As the premier retirement community in the Houston area, The Buckingham offers the benefits of a Life Plan community, which includes independent living, assisted living, memory care, skilled nursing, rehabilitation, and more. Also known as a continuing care retirement community, The Buckingham is a place where you will find refined and distinct elegance coupled with a friendly environment. Our mission is to provide our residents with the best living experience that retirement has to offer.
Learn more about The Buckingham’s non-for-profit independent living community by contacting us online or calling 713-730-2633.