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 * For-profit music schools

Much has been said from 2011 to 2014 about for-profit music schools. And there is no shortage of critics of for-profit colleges and universities. Former United States Senator Tom Harkin, a Democrat from Iowa and a prominent critic, cites, among other things, misguided priorities at the expense of students for publicly traded educational institutions.


 * Nonprofit vs. for-profit briefly defined

Nonprofits are some of the richest institutions in the world. The endowment at Harvard, as of June 2014, was $36.4 billion. The Met Opera, at year-end 2013, was $253 million. And compensation for employees of endowments is not always low. Wynton Marsalis, for example is paid over $2 million a year by Jazz at Lincoln Center, which owns its facilities valued at about $150 million, has an endowment of about $11 million, and annual income of about $32 million. These figures are in the stratosphere in comparison to prominent for-profit institutions related to fine arts.

McNally Smith College of Music a for-profit institution shares some traits with the Musicians Institute. Both were pioneers in contemporary music. Both are for-profit entities. And, both are privately held. Harry K. Chalmiers, Jr. (aka Rocky Chalmiers; born 1952) — president of the McNally Smith since 2010 and former academician at the Berklee College of Music — addressed the topic in 2014. He acknowledged that some of the criticism was warranted in the case of other institutions, but also pointed to moral hazards of nonprofit institutions. Chalmiers said that McNally Smith was mission-driven and privately held. He said that its founders spent much of their early professional careers in the nonprofit world; and, in that world, they experienced (i) a prevailing lack of respect and interest for contemporary music and (ii) layers of bureaucracy that blunted the creation of innovative music programs. The upshot was that the for-profit model, when McNally Smith was founded in 1985, gave more control, which in turn, was more conducive for and efficient, creative, no-nonsense organizational model. Chalmiers also pointed out that McNally Smith has never been highly profitable and certainly not as aggressive as some nonprofit institutions, in terms of fund raising and tuition.
 * Common traits of notable for-profit music schools

As parallel analogies, companies in the music instrument manufacturing and retail industry will aver that they are not getting rich. And, as evidenced by the closure of several famous music instrument retailers, particularly those that served professional musicians in jazz and rock and roll — Manny's, for instance — profitability has become more about survival, preservation, and restoration. In manufacturing, Gibson Guitar and Steinway & Sons, two leading brands, have faced declining sales and have endured iterations of cut-backs, reorganizations, and mergers to survive.
 * Comparing thin profit margins of music schools to those of the music trades

Critics of the for-profit music school model may point to the successes of nonprofit schools of contemporary music, namely the Berklee College of Music, founded in 1945 and the first institution to launch a formal guitar curriculum in 1962 under Jack Peterson, and more traditional institutes that were early adopters of jazz, including the University of North Texas College of Music, the first in the world to offered a degree in jazz (1947), and the New England Conservatory of Music, the first European styled conservatory to offer degrees in Jazz.
 * Arguments for converting from for-profit to nonprofit

Five Towns College is a for-profit university founded in 1972 and has a strong contemporary music school. Its board of trustees and founding president, Stanley Cohen, EdD, have argued that the college would be "better positioned to build an endowment if it were a nonprofit." Cohen, however, was removed from office in 2014 and shareholders have filed suit against the plan to make the college nonprofit.

Bullet points from a 2013 article in the The Chronicle of Philanthropy that criticize nonprofit models:
 * Criticisms of nonprofits
 * Tactics outweigh strategy. Challenging economic times expose a common problem among nonprofit leaders: that they often work hand-to-mouth, chasing the next donation or grant, focusing on program and day-to-day operations
 * Executives and boards are chasing money rather than meeting needs
 * Fear rules too many foundations — foundations are less inclined than ever to foster and promote innovation
 * Inertia rules most nonprofits

Critics of nonprofit institutions also aver that nonprofits are often more acquisitive than for-profits. They point-out that for-profits are more competitive on tuition pricing.


 * For profit music schools in Europe
 * Modern Music School Berlin (MMS Berlin)
 * Datenklang Berlin