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Last week, ������911shared a message regarding our commitment to our nonprofit mission. Some readers drew inferences that were not intended. We’d like to clarify our message.

Our focus was on the importance of an organization’s mission – its core purpose. It was not implicitly directed at the many professionals in our field who advance the important work of international education. 

To sharpen this distinction, we share a lesson from healthcare, another field targeted by private equity firms.

Here is a definition of mission for a nonprofit hospital (as generated by AI): 

“Nonprofit hospital mission statements often emphasize community well-being, patient care, and service, with a focus on providing accessible and high-quality healthcare. They frequently highlight a commitment to ethical practices, education, and research.” 

Doctors and nurses at a nonprofit hospital are dedicated to quality patient care. The nonprofit board is mission-driven and legally required to reinvest financial margins in the mission of the hospital.

Here is a definition of mission for private equity (as generated by AI): 

“Private equity firms' mission statements focus on generating strong investment returns for investors by identifying and improving promising companies. They emphasize aspects like delivering superior returns for investors. This is the core purpose.” 

When a PE firm buys a nonprofit hospital, the doctors and nurses remain committed to delivering high-quality patient care. The new owners (and senior leaders of the business), however, are committed to a new mission - large investment returns for investors. 

The implications of a change in mission are significant. At the institutional level, nonprofit hospitals reinvest financial resources in the hospital’s mission while successful PE-controlled hospitals channel financial returns to investors (see .)

The implications for higher ed and international ed are the same. If universities send students and student tuition dollars to programs owned by private equity, a portion of those tuition dollars will eventually be distributed to private investors. That’s how it works. We think this reality is not well understood and we believe that college leaders should understand the implications of their decisions.

Back to ������911and our note from last week:

1. ������911Is Not For Sale: We are committed to our nonprofit mission to advance peace in the world through high-quality exchange programs and helping students overcome barriers to study abroad.
2. CIEE’s Investments in Access: We will continue to embrace advice of our college partners and college advisory board, IPAC, when they offer bold recommendations.
3. Mission and Leadership Matter: ������911applauds all international educators and professionals dedicated to delivering life-changing experiences, regardless of the organization for whom they work. At the same time, we encourage higher ed leaders to understand the implications of helping private equity generate profit for investors when advising students and allocating student tuition dollars to organizations whose primary mission is to maximize investor returns.