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In a community where spaces are scarce in educational institutions, may a Jewish institution refuse a child if the parents will not commit to letting the child continue in that group's separate privately funded school?

The institution will gain economically from each child that is there.

Let us assume the institution would take the parents' word for it and accept any losses, while the agenda is obvious: The groups wants to reserve any empty spaces are for its own children.

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I would assume they can do whatever they want with their resources, so long as they aren't using it for sin or just throwing it out. – Double AA Dec 24 '13 at 20:29
    
@DoubleAA Better? – Adám Dec 24 '13 at 20:38
    
Adderabba. Now it's a question of government policy, not just halacha. – Double AA Dec 24 '13 at 20:39
    
@DoubleAA Okay, added that tag too. – Adám Dec 24 '13 at 20:41
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I meant that the question is unclear. It starts off asking what an institution may do to a child and his or her parents, and then says "they would take your word for it". "[T]hey" I assume means the institution, but who are "you", and what is this "word" to which you refer? – msh210 Dec 25 '13 at 16:40

If money is given good naturedly to an institution on the understanding that it will be distributed evenly and good naturedly, and it isn't, then the instutution has embezzled the funds provided to it as they have not used the money for its intended purpose.

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How do you know this? – Double AA May 12 at 23:49

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