The Not-For-Profit Difference.

Sommerset Neighborhood has benefits as a not-for-profit community and as such keeps earnings in the organization.

• Sommerset Neighborhood falls under section 501(c)(3) of the Internal Revenue Code. According to the IRS, a 501(c)(3) organization, “must be organized and operated exclusively for exempt purposes” and, “none of its earnings may inure to any private shareholder or individual.” Our residents are attracted to the idea that earnings stay in the organization.
• Sommerset Neighborhood is owned by a faith-based group that serves as the foundation for a strong mission-based culture that is attractive to many seniors.
• Sommerset Neighborhood’s management team is professionally suited to manage the organization.

For-profit communities have a responsibility to investors and/or shareholders.

• For-profit assisted living communities are responsible to corporate investors and/or shareholders who are interested in making money on their investment. According to James M. Moloney, Head of Real Estate and Co-Head of Tax-Exempt M&A at Cain Brothers in San Francisco, for-profits are, “run from a financial return perspective, as opposed to the mission-in-perpetuity perspective of the not-for-profits.”