Business Sense Makes Nonprofits Successful
What comes to your mind when you are reminded that Cornell Trace’s parent company, Baptist Homes Inc., is a nonprofit corporation? Research done at the Standford Graduate School of Business shows that “consumers frequently assign stereotypical views to nonprofits…that brand them as warm, generous and caring organizations, but lacking the competence to produce high-quality goods or services and run financially sound businesses. In contrast, for-profit companies are seen as more competent from a balance sheet perspective, but are not necessarily socially aware.” While overblown stereotypes may develop from grains of truth, making a life-changing decision about a move to a senior living community based on such a broad and unreliable basis can result in disappointment and unnecessary expense.
In the senior housing industry consumers have the opportunity to find among a great diversity of business models one that comfortably matches their personality. Non- and for-profit traits are among those you will want to consider. Simply stated, the differences between for-profit and nonprofit organizations are their aims. For-profit organizations aim to maximize profits for the company’s owners and shareholders. Nonprofit organizations aim to address society’s needs. Their concern is ensuring that the cost of their business is covered by its revenue. If a nonprofit produces a benefit to society, the government affords that organization a tax-exempt status.
Cornell Trace grew from roots of compassion, but it also delivers goods and services of the highest quality founded on financially sound business practices. Since 1966 BHI has been a successful, growing, senior housing concern from its beginnings on South Third Street as a housing provider for indigent men. Most recently a new wing of 40 private rooms opened at Springhurst Health and Rehab on the Springhurst Senior Campus of which Cornell Trace is a part. Now every room at SHR is a private room, including those for Medicaid patients.
Are You the Cornell Trace Type?
Louisville is home to the corporate offices of an unusually large number of for-profit senior living companies. These giants have many layers of policy makers striving to eliminate business risks, ensure maximum occupancy and streamline operations. They furnish their managers and staff with quotas, regulations and instructions based on research conducted in departments filled with highly-trained marketing specialists, statisticians and legal experts. I have colleagues for whom I have the utmost respect who thrive on the driving rhythms created by these well-oiled machines. Their facilities are certainly showplaces, and I know there are plenty of prospective residents that will find their personalities happily attuned to them.
Personally, I know I am working in the right place because Cornell Trace is exactly the kind of community into which I would like to retire. BHI has its corporate offices located on the same campus as the facilities it manages:Cornell Trace independent living patio homes, Parr’s at Springhurst personal care, and Springhurst Health and Rehab skilled care. This gives BHI a wonderful range of flexibility and responsiveness. BHI management and local business and professional members of the Board of Directors shape policy with the unique needs in mind of individual residents they see regularly. While Baptist Homes Inc. is dedicated to providing quality care to all regardless of their religious affiliation, prayers are offered at the beginning of each monthly board meeting for the mission of the organization and the seniors whose lives are lived in our communities. It is only then BHI commences the business of of making safe, healthy, financially secure homes for seniors.