GAO report looks at prevalence of ‘insiders’ in nonprofit conversions
Education Dive
Hallie Busta
January 27, 2021
Dive Brief:
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A new report from the U.S. Government Accountability Office highlights concerns about conflicts of interest in transactions through which for-profit colleges become nonprofit institutions.
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The GAO counted 59 such conversions between January 2011 and August 2020. In about a third of those, for-profit college officials were “insiders,” meaning they had a relationship with the nonprofit purchasing entity that could influence its financial decisions.
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Several for-profit colleges have sought nonprofit status to circumvent heightened regulations, something the U.S. Department of Education has largely granted.