For profit schools have shareholders/members who are privately entitled to the equity that accumulates. They generally will have to pay some form of taxes (inco

For profit schools have shareholders/members who are privately entitled to the equity that accumulates. They generally will have to pay some form of taxes (income, capital gains, etc.) on that leftover. Non-profit institutions like Harvard have received a federal exemption from most US taxes, provided that they continue to pursue their stated purpose and jump through some hoops. No individuals are legally entitled to Harvard's endowment.