Chairman Scott Urges Education Department to Review Nonprofit Status of Everglades College

Owner Found to be Receiving Millions in Profit from For Profit to Nonprofit Conversion

WASHINGTON – This week, Education and Labor Committee Chairman Robert C. “Bobby” Scott (VA-03) sent a letter urging the Department of Education to reconsider the nonprofit status of Everglades College after the Committee found that insiders at Everglades College and its subsidiary, Keiser University, have received millions of dollars in income from services provided to those institutions.

The letter describes how the sale of Keiser University to Everglades College, both owned by the Keiser family, and the subsequent conversion of Keiser University to nonprofit status has allowed Dr. Arthur Keiser, the Keiser family, and their related businesses to substantially benefit from Everglades College. The letter further explains why the continued profits that Dr. Keiser, the Keiser family, and their related businesses earn from the operation of Everglades College necessitate a review of the institution’s nonprofit status.

“In the case of Everglades College, the owner and the owner’s family, substantially benefit from the earnings of the institution in violation of the principles of what makes an institution a nonprofit,” Chairman Scott wrote“Dr. Keiser, his family members, and related businesses have received millions of dollars since 2011 from loan payments, rental properties, and contracts to provide goods and services to Everglades College, including at above fair market values.  We request the Department review its previous recognition of Everglades College as a nonprofit institution.”

The letter comes after the Government Accountability Office issued a report in December 2020, which Chairman Scott requested, that found significant concerns with insider involvement in for-profit conversions and urged the Department of Education to provide better oversight of for-profit institutions that convert to nonprofit.

To read the letter, click here.


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