Role of Non-profits in Education
Non -profit in education states that an organization or institution gets incorporated under the state law. This incorporation suggests that it is federally tax-exempt, and it must become a corporation. To qualify as a nonprofit, the organizational test, public benefit test, lobbying restriction, operational test, public policy test, and inurement test should get passed by the educational organization (Pressgrove & Waters, 2019). In these circumstances private interests can get but only incidentally, where the principal beneficiary of the institution’s activities must be adequately numerous and well defined in that the society is served in some way. Public schools are the precise depiction of educational nonprofits at play.
Chapter 7 covering education relates to my academic work and my possible career interest.it is estimated that Americans spent $1.13 trillion in the 2007/2008 academic year on education, which is a significant percentage (8%) of the gross domestic product in the country. Most of the spending in the educational sphere gets originated from the government (60%). These figures clearly show the rate at which the government plays an essential role in the financing of education in the United States (Salamon, 2012). The education sector is highly dependent on government funding. Nonprofit organizations take in 22% of all spending on education, one dollar in every five dollars spent.
The subfields of education paint a more vivid picture of the role nonprofit organizations play in it. In higher education, a subfield of learning has nearly 56% of four-year universities and colleges that are nonprofits. These institutions are mostly private entities in the United States although smaller in size than their public counterparts (Zimmerman & Hill, 2017). Their roles as nonprofits are more significant in that public universities are two years and do not offer degrees. On the other hand, they provide active programs at graduate and professional levels. Funding mostly comes from government (12%), grants, private gifts, endowment earnings, and contracts.