An education management organization (EMO) is a term of art describing a for-profit entity that manages schools. It provides a distinction from charter management organization which is a non-profit manager of charter schools. The terms are often used interchangeably, with resulting confusion.
Other and older usages of the term describe an organization that develops and distributes school curricula. These organizations in the United States provide the curricula for public schools, charter schools, virtual schools, and homeschooling parents. [1]
In 1991, Minnesota enacted legislation that enabled charter schools. Other states followed.
The state or its delegate issues a charter to a school. In most states, the charter-holder has the privileges and responsibilities of a school board, but not the taxing authority. Many states have adopted laws that require that the holder of the school charter be a non-profit organization. As a result, the most common form of a charter management organization is a 501(c)(3) non-profit organization. The charter holder may contract all aspects of school operation to an education management organization. The EMO accepts the full amount of state subsidy per student. If it can operate at a lower cost, the difference is profit for the EMO. The school may advertise that it is a non-profit, which it is, even if there is a for-profit entity operating in the background.
Wisconsin, California, Michigan, Massachusetts, and Arizona allow for-profit corporations to manage charter schools. [2]
Examples include:
In some cases a school's charter is held by a non-profit that chooses to contract all of the school's operations to a third party, often a for-profit CMO. This arrangement is defined as a vendor-operated school, (VOS). [3]
One authority on schools, Stanford University's Center for Research on Education Outcomes makes no distinction between terms. In its recent reports it describes CMO -- non-profit and CMO -- for-profit. [3] : 2
The National Alliance for Public Charter Schools makes a clear distinction. CMOs are non-profit; EMOs are for-profit. [4]
School choice is a term for pre-college public education options, describing a wide array of programs offering students and their families voluntary alternatives to publicly provided schools, to which students are generally assigned by the location of their family residence. In the United States, the most common—both by number of programs and by number of participating students—school choice programs are scholarship tax credit programs, which allow individuals or corporations to receive tax credits toward their state taxes in exchange for donations made to non-profit organizations that grant private school scholarships. In other cases, a similar subsidy may be provided by the state through a school voucher program.
Business is the activity of making one's living or making money by producing or buying and selling products. Simply put, it is "any activity or enterprise entered into for profit."
A chief executive officer (CEO), chief administrator officer, central executive officer, or just chief executive (CE), is one of a number of corporate executives in charge of managing an organization – especially an independent legal entity such as a company or nonprofit institution. CEOs find roles in a range of organizations, including public and private corporations, non-profit organizations and even some government organizations. The CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the business, which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission.
A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners. A nonprofit is subject to the non-distribution constraint: any revenues that exceed expenses must be committed to the organization's purpose, not taken by private parties. An array of organizations are nonprofit, including some political organizations, schools, business associations, churches, social clubs, and consumer cooperatives. Nonprofit entities may seek approval from governments to be tax-exempt, and some may also qualify to receive tax-deductible contributions, but an entity may incorporate as a nonprofit entity without securing tax-exempt status.
A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.
Charter schools in the United States are primary or secondary education institutions that are funded through taxation and operated by private organizations, rather than local school districts. They do not charge tuition, as they are funded with public tax dollars. Charter schools are subject to fewer rules than traditional state schools. Charter schools are meant to serve underserved communities that wish to have alternatives to their neighborhood school. There are both non-profit and for-profit charter schools, and only non-profit charters can receive donations from private sources. However, there are several ways that non-profit charters can profit.
A public–private partnership is an arrangement between two or more public and private sectors of a long-term nature. Typically, it involves private capital financing government projects and services up-front, and then drawing profits from taxpayers and/or users over the course of the PPP contract. Public–private partnerships have been implemented in multiple countries and are primarily used for infrastructure projects. They have been used for building, equipping, operating and maintaining schools, hospitals, transport systems, and water and sewerage systems.
The Knowledge is Power Program, commonly known as KIPP, is a network of free open-enrollment college-preparatory schools in low income communities throughout the United States. KIPP is America's largest network of charter schools. The head offices are in San Francisco, Chicago, New York City, and Washington, D.C.
For-profit education refers to educational institutions operated by private, profit-seeking businesses. For-profit education is common in many parts of the world, making up more than 70% of the higher education sector in Malaysia, Japan, South Korea, Indonesia and the Philippines.
EdisonLearning Inc., formerly known as Edison Schools Inc., is a for-profit education management organization for public schools in the United States and the United Kingdom. Edison is based in Fort Lauderdale, Florida.
Stride, Inc. is a for-profit education company that provides online and blended education programs. Stride, Inc. is an education management organization (EMO) that provides online education designed as an alternative to traditional "brick and mortar" education for public school students from kindergarten to 12th grade, as well as career learning programs. As of 2012, publicly traded Stride, Inc. was the largest EMO in terms of enrollment.
The South Carolina Public Charter School District is a school district based in Columbia, South Carolina that currently includes thirty four public charter schools across the state of South Carolina. The district has approximately 17,100 students.
Imagine Schools is a charter management organization in the United States, operating 55 schools in 9 states. They are K-8, for the most part. In 2015, Imagine schools had enrolled 29,812 students.
Privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector or common use to the private sector or to private non-profit organizations.
Mosaica Education, Inc. is an education management organization that operates preschool, elementary, middle and high school programs in the United States, United Kingdom and India in addition to other countries through Mosaica Online. Mosaica Education was founded in 1997. It acquired Advantage Schools, Inc., in 2001. Mosaica Education's primary focus is developing charter school programs in the United States that use its proprietary Paragon curriculum. Mosaica Education is co-headquartered in New York City and Atlanta, Georgia. The organization employs more than 1,800 people, primarily at the school-site level, and operates 104 programs for 25,000 students worldwide as of November 2013. Michael J. Connelly is Mosaica's chief executive officer.
Charter Schools USA (CSUSA) is a for-profit education management organization in the United States. It operates eighty-seven schools in seven states including sixty one charter schools in Florida. In 2019, Charter Schools USA managed charter schools enrolling approximately 70,000 students on a vendor operated school basis.
A charter school is a school that receives government funding but operates independently of the established state school system in which it is located. It is independent in the sense that it operates according to the basic principle of autonomy for accountability, that it is freed from the rules but accountable for results.
A charter management organization (CMO) is an educational organization that operates charter schools in the United States. Charter schools are public schools that operate independently of the local government school district.
Pansophic Learning is a for-profit charter management organization with schools in the United States, Switzerland, and the United Kingdom. Pansophic is based in McLean, Virginia. Its Accel Schools subsidiary is the largest charter school operator in Ohio.
The National Alliance for Public Charter Schools is a non-profit trade association serving the charter school industry.