“Kirkwood began as a not-for-profit created by the Independent Presbyterian Church to offer continuing care retirement to seniors.”
Not-for-profit: What are the benefits or advantages of choosing a not-for-profit (NFP) retirement community?
In part one of our blog series, we defined an NFP retirement community as an organization that keeps all of its earnings within the organization. Once the community’s operational budget has been met, any other revenue is invested back into the organization to improve its programs and services, enhance the community’s campus, and ultimately benefit residents. For-profit (FP) organizations have obligations to investors and shareholders before using funds to invest in the community. A non-profit community’s primary commitment is to its residents. This priority defines the organizational and motivational structure.
Kirkwood by the River’s not-for-profit organizational structure begins with the church that founded our organization 40 years ago. We are an independent community rather than a conglomerate governed by a larger company. Our governing board of directors is 100% local to Birmingham. Many of the board members have invested interest in the community, such as a parent or relative. Our CEO, CFO, and Health Administrator who oversee the community’s day-to-day decisions are all onsite. This organizational structure benefits Kirkwood residents because the people who make decisions for the present and future well-being of this organization all reside in town and are focused on our singular community and its residents.
An NFP organization’s motivations and its governing body differ from those of an FP organization because there is no financial investment at stake. The board and president want what is best for the community without a profit-at-all-costs interest in the financial outcome. Governing heads of an FP organization are motivated by paying their investors and proving worth to shareholders.
The last benefit of choosing a not-for-profit retirement community is that residents have a voice. Residents’ needs and wishes figure prominently into the vision and how it is carried out daily. Our Kirkwood Residents Association meets to discuss various aspects of the community and work with the administration to develop solutions and ways to better the organization as a whole.
As we continue to take a more in-depth look into not-for-profit retirement communities and what sets us apart when it comes to choosing a new home for yourself or your loved one, we hope you will join us! If there are any specific questions you have or topics you would like us to cover – please feel free to drop in the comments or email email@example.com!