Public and Private Institutions

The U.S. education system recognizes both public (state) and private education and makes no distinctions between them as to restrictions or limitations. Religious institutions are legally treated as private institutions because the United States recognizes no state religion. If a religious institution is chartered and accredited it is regarded as a recognized private institution (the religious affiliation is ignored).

There are over 27,000 private primary and secondary schools, accounting for over 23 percent of all schools; and over 7,000 private postsecondary institutions, around 70 percent of all institutions. Private schools and postsecondary institutions tend to be smaller in enrollments than public institutions, so that the percentages of students enrolled in private education are smaller than the percentage of private institutions might indicate (just over 10 percent primary and secondary and around 30 percent postsecondary).

Institutions as Corporations

Postsecondary institutions and private schools are corporations under U.S. law. They are approved to operate by the state government in whose jurisdiction they are founded and are issued a charter as a non-profit, for-profit (proprietary), or public corporation providing education and training. Increasingly, state authorities are requiring approved and chartered educational providers to apply for and receive accreditation as a condition of final and continued approval.

As corporate entities, U.S. institutions are internally self-governing and are able to make property, facilities, equipment, and utilities transactions; make their own personnel decisions; decide whom to admit to study and to graduate; raise their own funds from outside sources; enter into contracts and compete for grants; and do most of the other things that corporations do. Institutions compete with one another for students, research funding, faculty, and other benefits. Public institutions may compete within the same state or territory for budget appropriations. It is the corporate nature of institutions and the competition within the system that causes Americans to refer to the concept of the educational or academic marketplace - an important distinctive element of the way U.S. education is organized.

Some institutions are governed collectively under system, or multi-campus, arrangements. These include most local public schools (governed by school districts) and many state community college and university systems. Whether single- or multi-campus, institutional corporations are controlled by boards of citizens, both alumni and non-alumni, who are ultimately responsible for all operations. They appoint senior leaders, such as principals, headmasters, presidents, and deans; and approve the actions taken their name by these administrators (including the hiring and promotion of faculty and staff).

National Association of State Boards of Education (NASBE) is the association representing the boards responsible for overseeing state and territorial educational operations and policy.

National School Boards Association (NSBA) is the association representing the local school boards that govern U.S. public school districts.

Association of Governing Boards of Colleges and Universities (AGB) is the association representing the boards that govern U.S. postsecondary institutions.

Association of Community College Trustees (ACCT) is the association representing the specialized governing boards for community colleges.

Public Institutions

Public institutions are chartered educational systems or individual campuses whose governing boards are appointed by the state legislature or governor (or a local official or council) or elected. They generally receive an annual budget allocation from the state, county, or municipality. Public institutions may be restricted in respect of their freedom to dispose of property paid for by public funds or in respect of hiring and promotion by laws and regulations governing employees on the state payroll. The degree to which public institutions are controlled by state or local requirements varies widely. Aside from whatever limitations may exist in state or local law, however, most public institutions are internally self-governing and operate and compete in much the same manner as do private institutions.

American Association of Community Colleges (AACC) is the national association representing the public community colleges across the United States.

American Association of State Colleges and Universities (AASCU) is the national association representing the designated state universities and many public 4-year colleges, including institutions that are state-related (independent institutions having some affiliation with the state system and receiving some support).

National Association of State Universities and Land-Grant Colleges (NASULGC) is the national association representing all state institutions and multi-campus systems, including the institutions founded via the Morrill Acts to receive federal support via land grants and funds for agricultural education.

Private Institutions

Private institutions are chartered educational systems or individual campuses which are independent of state affiliation and whose governing boards are self-appointed or appointed by the private owner (such as a religious group, foundation, or business). They do not receive annual regular funding from a state or local government, but they may request and receive special funding for specific purposes if the law permits. Private institutions are not restricted in their freedom to dispose of property, personnel matters, or other issues unless they have entered into agreements or commitments with government agencies to which conditions are attached. Most degree-granting private institutions of higher education, and most private schools, are chartered as non-profit corporations.

Among the associations representing large numbers of U.S. private non-profit institutions are:

American Association of Bible Colleges (AABC)

American Association of Christian Schools (AACS)

Association of American Colleges and Universities (AACU)

Association of Catholic Colleges and Universities (ACCU)

Association of Christian Schools International (ACSI)

Association of Jesuit Colleges and Universities (AJCU)

Association of Southern Baptist Colleges and Schools (ASBCS)

Council for Christian Colleges and Universities (CCCU)

Council of Independent Colleges (CIC)

Jesuit Secondary Education Association (JSEA)

Jewish Community Day School Network (JCDSN)

Jewish Education Service in North America (JESNA)

National Association of Independent Schools (NAIS)

National Catholic Education Association (NCEA)

University Senate of the United Methodist Church

Proprietary Institutions

Proprietary institutions are a special class of private institutions chartered as for-profit corporations or businesses. While some proprietary institutions offer degree programs, the majority offer specialized occupational training programs of short duration aimed at supplying workers for specific industries or retraining workers. The concept of a proprietary educational or training institution is well-established in the U.S. education system, and these institutions are considered to fulfill a demand that other types of providers do not.

Among U.S. associations representing large numbers of proprietary schools, as well as non-profit institutions, are: