Religious institutions are legally treated as private institutions because the United States recognizes no state religion. Institutions as Corporations Postsecondary institutions and private schools are corporations under U.S. law. Increasingly, state authorities are requiring approved and chartered educational providers to apply for and receive accreditation as a condition of final and continued approval.
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. 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.