Grand Canyon University Eyes Return To Nonprofit Status
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The head of Grand Canyon University told investors in a Wednesday conference call that the school could return to nonprofit status by the middle of this year.
The announcement comes as the university seeks to grow the number of on-campus students by about 10,000 over the next five years.
The current proposal would have a yet-to-be-named nonprofit organization buy assets from Grand Canyon Education Inc., the school’s publicly traded company, said GCU President and CEO Brian Mueller. GCE would then transition to a service technology company, and GCU would be governed by a board of trustees.
“We have provided extensive information to the IRS and HLC about this type of structure and are hopeful that we will receive necessary approvals,” Mueller told investors.
GCU avoided bankruptcy by switching to for-profit status in 2004. With the school now financially stable, Mueller believes returning to a nonprofit is best for students, faculty, staff and investors.
“Please keep in mind that there is a great deal of work yet to be done, so no definitive agreements have been signed and significant regulatory approvals remain to be obtained,” Mueller said.
