When it comes to Life Plan communities, formerly known as Continuing Care Retirement Communities, future residents generally have the option of two business models: for-profit organizations and non-profits.
Related Blog: Life Plan Community: Experience the Benefits of an Active Retirement Lifestyle
Our Vice President of Resident Services, Steve Brinkert, Discusses the Benefits of Being a Non-Profit
The Differences Are Clear
For-profit retirement communities are required to pay taxes and operate as a commercial business, designed to achieve revenues in excess of expenses, which are then distributed to owners and shareholders. There are countless successful for-profit companies in this world, many of which are well-known household names including Wal-Mart, Apple, Exxon Mobil, Verizon, and United Health.
On the other hand, a non-profit organization with a tax-exempt status, is dedicated to furthering a social cause and using surplus revenues to achieve its mission, by seeking ways to increasingly serve a chosen audience. Well-known national non-profits include United Way, Salvation Army, YMCA, The Red Cross and Habitat for Humanity.
The most obvious difference between the two business models is where the excess revenues go at the end of a fiscal year. In the case of Life Plan Communities, profits can generally be distributed or spent in three ways: enhancing the lifestyle of its residents, expanding the amenities of the community, and possibly, to aid and support other non-profit organizations. Why would a non-profit give money to another non-profit, you ask? Because these organizations provide services to families and other seniors which as a result, helps strengthen the overall community.
Enhancing Retirement Living
Non-profit Life Plan communities will often use excess end-of-year funds to construct additional campus amenities designed to enhance the lives of its residents. For example, enhanced dining rooms or perhaps the addition of a new restaurant might fall into this category. The addition of a fitness center might be another example, as a way to help residents stay fit and active. Non-profit communities might also elect to add medical services such as a Memory Care Center to enhance the lives of those residents with dementia or Alzheimer’s.
For-profit organizations, with a focus on the bottom line for their shareholders, may not be able to afford the costs of new campus amenities without increasing entrance fees or charging higher monthly fees.
Expanding Existing Amenities
For Life Plan communities that have a non-profit status, making improvements to existing amenities is yet another way for them to put their money to good use. Enlarging common areas such as a community’s clubhouse or outdoor amenity areas are examples of expansion.
Supporting Other Organizations
Some non-profit Life Plan communities – though not all – take great pride in supporting the communities in which they call home. And while these communities are truly non-profit, because there may be excess funds available at year’s end, donating to other philanthropic causes makes them a good neighbor and a good friend.
The Moorings Park Difference
We take our mission seriously. Providing “Simply the Best” amenities and services for successful aging in Naples. Our core values are designed to reflect our mission statement in each and every thing we do. It is for this reason that we proudly note of the ways in which we have enhanced our residents’ lives by constructing a 37,000 sq. ft. Center for Healthy Living, as well as by opening a restaurant on our main campus that reflects the resort casual lifestyle revered by our residents.
We’ve expanded numerous amenities such as the complete redesign of our clubhouse, completed in late 2017, and Lyon Park which now includes putting and chipping greens, tennis and bocce ball.
And lastly, our social accountability includes the likes of such worthwhile organizations as the American Heart Association, the American Cancer Society, the Alzheimer’s Association and the Neighborhood Health Clinic, to name a few.
Choose the Retirement Community That’s Right for You
There are many factors involved in making a choice of where to live out your retirement. Certainly, choosing between a for-profit Life Plan Community versus a non-profit community is just one of them. But it’s a big one. Take your time, ask questions and compare for “Simply the Best”® decision you will ever make.
