Home News Bryant & Stratton Pursues Nonprofit Conversion – Inside Higher Ed

Bryant & Stratton Pursues Nonprofit Conversion – Inside Higher Ed

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The for-profit college’s owners are donating it to their family foundation, and it will maintain an independent governing board, per New York State law.

Bryant & Stratton College, a private for-profit institution based in Buffalo., N.Y., plans to convert to a nonprofit, the college confirmed Thursday.

The college’s owner, Bryant H. Prentice III, 80, donated the college to his family foundation, the Prentice Family Foundation. The foundation is a nonprofit that aims to stimulate economic growth and employment in western New York.

For-profit conversions are often scrutinized. Critics argue for-profit institutions fail to see students through to graduation or leave them with high debt levels. They argue some for-profits seek nonprofit status to avoid tougher tax burdens or regulatory scrutiny but simultaneously sign consulting or outsourcing agreements to keep cash flowing to their former owners.

In a statement, Bryant & Stratton called its conversion an “outright benevolent and unrestricted donation” and addressed its financial relationship with the Prentice family.

“Different than any other transaction leading to a change in status from for-profit to not-for-profit college that we are aware of, the College has not taken out a loan or entered into management or consulting agreements to pay money to the Prentice family,” the statement said.

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