For-Profit Versus Not-For-Profit International Schools

The number of international schools continues to grow, especially For-Profit schools. What is the difference? How can we compare For-Profit and Not-For-Profit schools?

I went to Gemini and a search engine to gather information and resources. I also accessed my bookmarks to find a few articles. Here is my editing of a Gemini-provided framework with categories that ring true to me to help with the comparison. It is just a starting point to grow your understanding. Look also to read the articles following the framework as they provide more insights and perspectives.

Governance and Ownership:

For-profit: These schools are owned and operated by individuals or corporations with the primary goal of making a profit. Profits can be reinvested in the school or distributed to shareholders. A board of directors, a CEO, or both can manage the school.
Not-for-Profit: No individual(s) or entity owns the school, and it doesn’t aim to generate profits. A board of trustees governs and is usually composed of volunteers who focus on the school's mission and educational goals. Any surplus funds typically go into the school's facilities, programs, or scholarships.

Financial Priorities:

For-Profit: Focus on generating revenue through tuition fees, additional charges for activities or resources, and attracting students who can pay high fees. They might prioritize facilities and resources that attract students and parents, potentially impacting class sizes or teacher salaries.
Not-For-Profit: Tuition fees are often the primary source of income, but they might seek donations or grants to supplement funding and offer financial aid to students. They focus on educational quality and may prioritize smaller class sizes and competitive teacher salaries to attract and retain qualified staff.

Transparency and Accountability:

For-Profit: Less obligated to disclose financial information compared to not-for-profits. Decision-making can sometimes be focused on profitability rather than educational benefits.
Not-For-Profit: They generally are more transparent with finances. They often must demonstrate responsible use of funds to donors and parents. Decisions are typically made based on the school's mission and educational goals.

Here are some additional factors to consider when comparing:

Accreditation: A good starting point for comparing any international school to another is whether it is accredited by a well-established accreditation agency.
Curriculum and Educational Philosophy: Both for-profit and not-for-profit schools can offer a variety of curriculums and educational approaches.
Teacher Qualifications and Retention: Both types of schools can have strong faculty. However, not-for-profit schools might be more competitive in attracting and retaining qualified teachers due to potentially higher salaries and benefits.
Student Diversity: For-profit schools might prioritize attracting students from wealthy families who can afford high fees. Not-for-profit schools might have a more diverse student body due to the potential availability of financial aid.

Here is our growing collection of articles, blog posts, and other resources to help you better understand the nature of for-profit versus not-for-profit international schools. We include some dated resources that provide background on the change from mainly not-for-profit to for-profit schools over the past two decades.

For-Profit School Chains: Leading the Way in International Education?

International Headteacher | May 2024

Understanding the Distinction: For-Profit vs. Not-For-Profit International Schools

International Headteacher | April 2024

International School Ownership Models

Search Associates | May 2023

How to Choose an International School (Part 2)

Jaqueline Mallais | May 2022

To Profit or Not For Profit, That is the Question

TES Magazine | November 2020

For-Profit and Non-Profit Schools: A View from Singapore American School

William Scarborough | February 2015