Federal Government Recognizes Grand Canyon University as Nonprofit

December 15, 2025

The U.S. Department of Education has formally acknowledged Grand Canyon University (GCU) in Phoenix as a nonprofit institution, ending a long-running battle over the school’s status.

For years, GCU operated as a for-profit university before transitioning to nonprofit status in 2018. While the university itself and the Internal Revenue Service recognized the change, the Department of Education resisted, arguing that GCU’s financial ties to its former parent company blurred the lines between nonprofit and for-profit operations.

This new federal recognition marks a significant victory for GCU, which has consistently maintained that its nonprofit designation better reflects its mission and governance structure. University leaders have argued that the change allows them to reinvest resources into student programs, faculty, and campus improvements rather than distributing profits to shareholders.

The decision also has broader implications for students. As a nonprofit, GCU is now eligible for certain federal programs and benefits that were previously restricted. It may also strengthen the university’s reputation among prospective students and families who often view nonprofit institutions as more mission-driven and less commercially focused.

GCU officials celebrated the announcement, noting that the recognition validates years of effort to align the university’s operations with its educational mission. The school has grown rapidly in recent years, becoming one of the largest Christian universities in the country, with tens of thousands of students enrolled both on campus and online.

This resolution closes a contentious chapter in GCU’s history and positions the university to continue expanding its role in higher education as a recognized nonprofit.

Source: This story is based on reporting from Arizona’s Family (azfamily.com).