LERN

Members Oppose New U.S. Order

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The U.S. federal government is proposing a regulation to ban your ability to have a non-compete contract with your teachers. Of members who care, you oppose the regulation by 2:1 margin.

Programs opposing the new order were asked to comment and report how the order will affect the field negatively.

No nonprofit has ever posed a monopoly threat to competitiveness. Lifelong learning programs in the nonprofit sector, such as yours, are part of the solution, not the problem.

Some of the significant and negative impacts:
1.Eliminating classes for thousands of people.

Your classes run on a razor-thin financial edge, with many just breaking even or making only a small surplus with which to support your nonprofit mission.

By having your teachers also offer the same class with your competitors, the market share is divided and made smaller.

2.Your costs go up.

When you promote a class, you spend staff time and thousands of dollars on marketing, as every organization must to generate registrations. When you have a class with an instructor offered by a competitor, such as a for-profit organization, you will have to cancel more classes.

Cancelled classes cost you money in staff time and promotion.

3.Support for mission-central classes hurt.

The order hurts your nonprofit mission in at least two ways.
-You depend on popular classes to subsidize your ability to offer mission-central and community service classes that the for-profit sector doesn’t do in your community. The order will hurt your most popular classes, meaning you will have less or little resources to provide valuable community service classes.
-Most members generate local taxpayer support for your publicly supported institution. Your institution needs more support, not less. When you reduce the number of people taking your classes, you reduce the number of taxpayers benefiting from your institution and thus voting to support it.

LERN, which will also be seriously financially hurt by the order, will keep you updated.