Aim To investigate the relationships between demographic characteristics of the elderly, type of long‐term care (LTC) facilities, and the reasons for moving into LTC facilities. Methods Research participants included people aged over 65 years, living in LTC facilities. A total of 1280 questionnaires were distributed to 111 LTC facilities in Taiwan; 480 questionnaires were retrieved, and 232 were included in the valid sample. The study used a non‐linear canonical correlation analysis, which assesses the relationships among similar sets of categorical variables. Results The results showed that the older adults in quadrant I were characterized by being involved in the decision‐making regarding the choice of LTC facilities and received economic support from their children. The older adults in quadrant II mainly lived in LTC facilities to receive medical care, whereas those in quadrant III typically included individuals with low income, who did not choose to live in LTC facilities. Furthermore, those in quadrant IV had positive cognitions associated with LTC facilities. Conclusions We believe that the results of the present study will facilitate policy‐making in the field of LTC, provide reference to the practitioners and the older adults, and identify the types of decisions older adults make when moving into LTC facilities, thus assisting older adults to improve their strategies regarding staying in LTC facilities. Geriatr Gerontol Int 2017; 17: 1319–1327.