The Key Differences Between For-Profit and Nonprofit Continuum of Care Organizations

As you explore your options, you may notice that there’s more to your decision than meets the eye.

One of the most common questions we receive at Knute Nelson involves our 501(c)3 nonprofit status. Mainly, what are the differences between for-profit and nonprofit continuum of care organizations? That’s why we have laid out the need-to-know below.

Quality of Care

One of the key differentiators between for-profit and nonprofit organizations is quality of care. While for-profit organizations are focused on maximizing revenue, the primary goal for nonprofits rests in their mission.

For example, our mission at Knute Nelson is to enrich the lives of everyone we serve. To accomplish this, we reinvest in our world-class staff, innovative technologies, and state-of-the-art facilities. In 2021 alone, we provided over $202,000 to employee scholarships, directly elevating the proficiency of our compassionate team.

Additionally, our 501(c)3 status lends way to crucial tax exemptions that enable us to further support our mission. The reduced financial burden allows us to allocate more resources toward what matters most: the wellbeing of our residents.

In addition, Knute Nelson’s 501(c)3 nonprofit status allows the Knute Nelson Foundation to work with the generous donors to maximize the impact of their charitable gift. Donors who give to the Knute Nelson Foundation, whether it be through gifts of cash, appreciated stocks, IRA required minimum distributions, or through an estate gift, are able to receive tax benefits because they are giving to a qualified nonprofit organization. This allows donors to experience the joy of giving to an organization they care deeply about, while also reducing their potential tax impacts.

Investments in Innovation

For growing continuum of care organizations like Knute Nelson, innovation is paramount. Ultimately, our communities are expanding, and the needs of our residents are evolving. In turn, technological and process improvements are a prerequisite to growth.

While for-profit companies have a tendency to stay the course while focusing heavily on metrics such as Net Patient Revenue (NPR), nonprofits have a moral commitment to offer the highest possible care. As a result, our top priority is enhancing the resident experience.

Community Stakeholders vs. Profit-Oriented Shareholders

As a nonprofit organization, Knute Nelson’s main focus is to engage and serve our community stakeholders. Local partnerships and a commitment to the older adults and families we serve is our utmost priority. This is a key difference between nonprofit organizations and for-profit organizations that answer to a group of shareholders who are focused on increasing the value of the company’s stock.

With a unique governance structure, nonprofits and the communities they serve benefit from a mosaic of perspectives. For example, our Knute Nelson family features a local board of directors with cross-industry expertise.

These trusted leaders bring a diverse wealth of knowledge that is oftentimes missing from specialized for-profit organizations. As a result, we offer a broader range of services for our residents and a more relevant array of opportunities for our staff.

Is Knute Nelson the Right Fit for You?

While there are countless operational and administrative differences between for-profit and nonprofit continuum of care organizations, quality of care, investments in innovation, and multifaceted expertise are especially pertinent for residents and their loved ones.

For more information on Knute Nelson’s services, we invite you to explore our website or give us a call at (320) 421-0242. From there, you can determine if Knute Nelson is the right fit for your unique needs.