For-Profit Vs. Not-For-Profit Communities:What Are the Differences and Why Do They Matter?

If you’ve ever typed “retirement communities” into a search engine, you probably noticed that the results fall into two major categories: for-profit and not-for-profit. Both offer ample services and amenities, attractive floor plans and tasty dining options. But there are some key differences based on how the communities are run and why they were established in the first place.

Understanding the distinction between for-profit and not-for-profit senior living communities—like St. James Place in Baton Rouge—will help you make the right choice as you plan for an active, fulfilling retirement. And that includes getting the most value for your dollar.

Where Does the Money Go?

For-profit communities are run by individuals and private companies, including national chains. And like the name suggests, they’re in business to make money. Not-for-profit communities are run by not-for-profit organizations and charitable groups, so they don’t answer to investors, stockholders or outside corporations. That means all funds go directly into improving the experience of everyone who lives there.

A few years ago, for example, folks began to notice that the St. James Place Square—the heart of our community’s vibrant social scene—needed some revitalization. What followed was a massive 14-month effort to make The Square grander and more elegant than ever. So how did we know that the new Square would meet resident expectations? We asked for their input about everything from color schemes to which style of chair was most comfortable.

Today, The Square is bustling with activity as neighbors enjoy an abundance of markets, dining options, gathering places and other amenities. What’s more, residents feel a sense of ownership in the project, because they worked hand-in-hand with the artisans, interior decorators and others who made the dream a reality.

What’s the Community’s True Mission?

Both for-profit and not-for-profit senior living communities offer abundant services, amenities and levels of care. But because non-profit communities are driven by a mission statement, not a desire to maximize revenue, they’re more likely to offer a full continuum of care.

St. James Place is no exception. In fact, our Life Plan is a key part of our mission. Once you move here, you can seamlessly transition among independent living, assisted living, memory care and skilled nursing if your needs change. All with predictable monthly costs and without leaving the community and friends you’ve come to love.

Nonprofit senior living communities also have the advantage of receiving generous contributions from folks who embrace their missions. At St. James Place, we’ve established a Foundation to help residents who, due to circumstances beyond their control, can no longer cover their monthly expenses. (Try finding that at a for-profit community!) The Foundation also provides financial resources to enhance our vibrant 52-acre campus and provide our residents with the quality of life they deserve.

How Engaged Are the Residents?

Building and maintaining social connections is critical to our physical and mental health, particularly as we age. And make no mistake, for-profit senior living communities do invest time and resources into giving residents opportunities to interact with their neighbors. After all, they wouldn’t succeed if they didn’t.

However, not-for-profit Life Plan Communities like St. James Place understand that simply providing activities to keep residents entertained isn’t enough to promote social wellness. Residents also have to be involved and engaged in lifelong learning, volunteering and other fulfilling pursuits.

We’ve already pointed out how our newly renovated Square has become a magnet for all sorts of happenings like art shows, concerts and an abundance of clubs dedicated to music, fitness, books and more. What we didn’t mention, though, is how these activities are driven and inspired by the folks who call our energetic community home.

For example, St. James Place residents play a big role in suggesting topics and presenters to Emily Bozeman, the Independent Living Life Enrichment Manager.  Many even have direct connections to experts like “Bone Lady” Mary Manhein and LSU Retired Coach Paul Mainieri.  Folks also put their skills to use by volunteering for one of several resident committees that focus on activities, groundskeeping and dining, just to name a few. It’s all about building a sense of communal purpose and connection that you’d be hard-pressed to find in a for-profit community.

What’s the Staff-to-Resident Ratio?

When a community doesn’t have to worry about maximizing a company’s bottom line, it can put more money toward hiring dedicated, caring staff members. That’s probably why non-profit senior living communities often have a higher staff to resident ratio than their for-profit counterparts.

St. James Place is brought to life by talented people committed to providing residents with top-tier service and a vibrant lifestyle. And while we believe in doing right by our team members in terms of opportunity and compensation, most will tell you they’re here for much more than just a paycheck.

“The mission and people are what I love most about St. James Place,” says Senior Vice President and Chief Financial Officer Thom Melancon. “I’ve come to know so many wonderful and fascinating residents over the past 20 years, from whom I’ve learned much—and with whom I feel a ‘family’ connection.”

When people find joy in what they do, they also tend to stick around. One of our greatest points of pride is how many of our employees have been with us for 20, 30 and even 40 years. Dining Services Utility Aide Supervisor, Donald Ross, who will soon celebrate his 40th anniversary at St. James Place, sums it up: “It’s just a nice place to work, the surroundings and the residents. From day one I just loved it!”

Come Experience the Difference for Yourself

Non-profit senior living communities like St. James Place offer more than just a spacious, well-appointed home. They also provide a supportive, engaging environment that centers around shared values, a continuum of care and vibrant community life. So, you can live each day to the fullest.

To schedule a tour of Baton Rouge’s premier senior living community, call 225-215-4510.