Grand Canyon University

university's petition for conversion to nonprofit status in 2016, stating that the school's proposed strategy, particularly its plan to outsource some of its activities (such as curriculum development and student support services) to outside vendors, did not meet the criteria for such a conversion. In 2018, GCU submitted another application to HLC to change to nonprofit status. This application was accepted on July 1, 2018. Although several organizations, including the IRS and the HLC, approved the transition, the U.S. Department of Education still classifies the university as a for-profit university. The government specifically alleges that GCU is a captive client to Grand Canyon Education and operates for the benefit of a for-profit company's shareholders. Grand Canyon Education has also been accused of engaging in securities law fraud in relation to GCU.
Grand Canyon University was alleged to have switched from for-profit to nonprofit status due to its yearly $9.2 million property tax bill. Numerous school …