Social and Behavioral Sciences Commons^™

Elite colleges are non profit institutions with limited capacity. An excess of receipts over costs due to higher demand for admission produces a surplus that could destroy their non profit status. To prevent this, elite colleges raise costs in the form of increased payments to their administrators and other favored recipients. This creates a commensurate higher cost by enough for elite colleges to maintain their non profit status. Nonprofit Organizations JEL L30, Economic Science JEL B30