On Its 2nd Try, Grand Canyon U. Gets the Green Light to Become a Nonprofit

Grand Canyon University will revert to a nonprofit institution after 14 years as a for-profit. The university announced on Tuesday that the Higher Learning Commission, its accreditor, had approved its proposal to become a nonprofit.

“This is consistent with GCU’s history and puts us on a level playing field with other traditional universities with regard to tax status and, among other things, the ability to accept philanthropic contributions, pursue research-grant opportunities, and participate in NCAA governance,” Brian Mueller, the university’s president, said in a news release.

The move has been in the works for years. In 2016 the university temporarily abandoned the effort when the commission said Grand Canyon had not met requirements to make the transition, noting that the rules did not allow “for the separate school-corporation and service-corporation model.” The university said in a corporate filing that the proposal had been rejected because it would have leaned too heavily on a for-profit entity for academic services.

But in January the university announced it was renewing the effort to become a nonprofit. At the time the university said it was heartened by the news that Purdue University would buy Kaplan University, a for-profit institution, because that model was similar to what Grand Canyon was seeking to do.

The commission also approved Purdue’s acquisition of Kaplan this week, Purdue announced on Monday.

Andy Thomason oversees breaking-news coverage. Send him a tip at andy.thomason@chronicle.com. And follow him on Twitter @arthomason.