A closer look: Profiling foundations created by health care conversions

Health Affairs

Volumn 19, Issue 2, 2000, Pages 257-259

  Williams, Malcolm V ^a   Brelvi, Saba S ^a  

^a Grantmakers in Health   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ARTICLE; BOARD OF TRUSTEES; CONFLICT OF INTEREST; CONSUMER; FINANCIAL MANAGEMENT; HEALTH CARE FACILITY; HEALTH SERVICES RESEARCH; HOSPITAL ORGANIZATION; HUMAN; NON PROFIT HOSPITAL; NON PROFIT ORGANIZATION; ORGANIZATION; ORGANIZATION AND MANAGEMENT; QUESTIONNAIRE; UNITED STATES;

CONFLICT OF INTEREST; CONSUMER PARTICIPATION; FINANCIAL MANAGEMENT; FOUNDATIONS; GOVERNING BOARD; HEALTH FACILITY MERGER; HEALTH FACILITY PLANNING; HEALTH SERVICES RESEARCH; HOSPITAL RESTRUCTURING; HOSPITALS, VOLUNTARY; HUMANS; ORGANIZATIONAL OBJECTIVES; QUESTIONNAIRES; UNITED STATES;

EID: 0034146240     PISSN: 02782715     EISSN: None     Source Type: Journal    
DOI: 10.1377/hlthaff.19.2.257     Document Type: Article

References (14)

1. Health systems include entities comprising a number of health care organizations, whether integrated vertically or horizontally.
2. Health care conversion foundation is not a legal term, nor is it adequately descriptive. The Internal Revenue Service (IRS) classifies these entities as private foundations or public charities. Some transactions between two nonprofit organizations have also led to the creation of foundations.
3. This trend is supported by the cy pres doctrine, meaning "as close as possible." The doctrine supports an application of the assets to a mission as close as possible to that of the original nonprofit.
4. These were identified from several sources, including regional associations of grantmakers, the Council on Foundations, the Foundation Center, consumer advocacy organizations, newspapers, conversations with GIH funding partners, and the trade press.
5. Grantmakers In Health, Philanthropy's Newest Members: Findings from the 1999 Survey of New Health Foundations (Washington: GIH, March 2000).
6. Most foundations reported assets from their last financial audit; others reported assets as of the survey date.
7. The type of organization converted is based on the foundation's self-report.
8. Respondents were asked only about current assets, not about assets at the time of formation.
9. This calculation is illustrative. Foundations classified by the IRS as public charities and public welfare organizations do not have an annual payout requirement; private foundations are allowed some carryover of distribution requirements. Moreover, some foundations pay out more than 5 percent of their assets annually.
10. L. Renz and S. Lawrence, Health Policy Grantmaking: A Report on Foundation Trends (New York: Foundation Center, 1998).
11. See N.M. Kane, "Some Guidelines for Managing Charitable Assets from Conversions," Health Affairs (Mar/Apr 1997): 229-237; P.A. Butler, "State Policy Issues in Nonprofit Conversions," Health Affairs (Mar/Apr 1997): 69-84; and G. Claxton et al., "Public Policy Issues in Nonprofit Conversions: An Overview," Health Affairs (Mar/Apr 1997): 9-28.
12. See N.M. Kane, "Some Guidelines for Managing Charitable Assets from Conversions," Health Affairs (Mar/Apr 1997): 229-237; P.A. Butler, "State Policy Issues in Nonprofit Conversions," Health Affairs (Mar/Apr 1997): 69-84; and G. Claxton et al., "Public Policy Issues in Nonprofit Conversions: An Overview," Health Affairs (Mar/Apr 1997): 9-28.
13. See N.M. Kane, "Some Guidelines for Managing Charitable Assets from Conversions," Health Affairs (Mar/Apr 1997): 229-237; P.A. Butler, "State Policy Issues in Nonprofit Conversions," Health Affairs (Mar/Apr 1997): 69-84; and G. Claxton et al., "Public Policy Issues in Nonprofit Conversions: An Overview," Health Affairs (Mar/Apr 1997): 9-28.
14. Reference to converted organization encompasses both the organizations that were converted from nonprofit to for-profit and those transactions involving nonprofits and/or municipal organizations for which there has been a conversion of mission.