The Century Foundation
Each year, more than half a billion tax dollars have been flowing to four educational institutions that were once for-profit colleges. However, their regulatory treatment as nonprofit schools may not be justified.
That is one of the central findings in The Century Foundation's latest report, The Covert For-Profit by TCF senior fellow Robert Shireman. The report's findings are based on previously undisclosed documents obtained under public records requests from the Internal Revenue Service and U.S. Department of Education.
Our investigation reveals a dangerous regulatory blind spot exists, with the IRS and Department of Education each assuming, wrongly, that the other is monitoring the integrity of the “nonprofit” claims by previously “for-profit” colleges.