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How to Count Sponsorships and Donations

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    Posted by: Rose Hesselbrock, GROUP HEALTH COOPERATIVE

    Date: February 09, 2015 11:48 AM

    Group Health sponsors many different activities hosted by non-profit organizations that encourage participation in physical activity/healthy eating; support organizations that provide access to care; and educate people about and support research in diabetes/cardiovascular disease management and prevention. Examples are sponsorships to the American Heart Association, the Juvenile Diabetes Research Foundation, the Cascade Bicycle Club and others. At first glance, these sponsorships and donations seem to fit into CBISA under E1 Cash Donations. However, the CHA Guide cautions that “only those donations to organizations and programs that are for the same type of activities and programs that would count as community benefit provided by the hospital should be counted”.

    I’m curious to know how other organizations categorize such donations in CBISA. ________________________________________________________________________________________________________________________________________________________________________________

    Response: Michelle Leak, Mayo
    Date: February 09, 2015 11:57 AM
    Hi. It is my understanding that if such program support is primarily for marketing purposes it should not be counted as community benefit. Here in Jax we sponsor a lot of events that I do not count as community benefit for this reason. Examples include: AHA Heart Walk; Katie Ride for Life (organ donation); United Way contributions (have not traditionally included in my community benefit but am now rethinking this; what do you all do with united way contributions from the organization not the funds contributed by employees?); 26.2 Marathon to finish breast cancer; AHA Heart Ball and Go Red for Women Luncheon; Light the Night Walk for Leukemia and Lymphoma Society’s; etc.

    Response: Roxanne Hull, Yavapai Regional Medical Center

    Date: February 09, 2015 12:30 PM

    We sponsor them anonymously so that we don’t get credit for marketing. That way we are able to include in CBISA.
    Response: Crystal Conner, Shannon Health & Wellness
    Date: February 09, 2015 12:32 PM
    Hi Michelle,
    We participate in many similar activities and have determined that we will count 50% of the costs towards community benefit. There is an aspect of marketing, but we also provide education and services that further the goals of our CHNA Implementation Strategy. I’m curious to hear how others might track this as well. __________________________________________________________________________________________________________________________________________________________________________
    Response: Rose Hesselbrock, GROUP HEALTH COOPERATIVE
    Date: February 09, 2015 1:25 PM
    Hi, Crystal,

    An interesting compromise. Agree that there is an aspect of marketing in that our logo is displayed along with the other sponsors of the event, but we do not promote our health plan products or our care services as a return for sponsoring the activity. The events are fundraisers for the organization and the dollars raised help with the costs of the event, but also with the work of the organization. Like you, we target our sponsorships toward activities and organizations which tie to our CHNA implementation strategies.
    Posted by: Jo Anne Leslie, Henry Ford Health System
    Date: February 09, 2015 1:56 PM
    To all the other great responses, I would like to add the following…instructions for the IRS 990 Schedule H:
    “Cash and in-kind contributions” means contributions made by the organization to health care organizations and other community groups restricted, in writing, to one or more of the community benefit activities described in the table in Part I, line 7 (and the related worksheets and instructions). “In-kind contributions” include the cost of staff hours donated by the organization to the community while on the organization’s payroll, indirect cost of space donated to tax-exempt community groups (such as for meetings), and the financial value (generally measured at cost) of donated food, equipment, and supplies.
    Do not report as cash or in-kind contributions any payments that the organization makes in exchange for a service, facility, or product, or that the organization makes primarily to obtain an economic or physical benefit; for example, payments made in lieu of taxes that the organization makes to prevent or forestall local or state property tax assessments, and a teaching hospital’s payments to its affiliated medical school for intern or resident supervision services by the school’s faculty members.
    Report cash contributions and grants made by the organization to entities and community groups that share the organization’s goals and mission. Do not report cash or in-kind contributions contributed by employees, or emergency funds provided by the organization to the organization’s employees; loans, advances, or contributions to the capital of another organization that are reportable in Part X of the core Form 990; or unrestricted grants or gifts to another organization that can, at the discretion of the grantee organization, be used other than to provide the type of community benefit described in the table in Part I, line 7. ________________________________________________________________________________________________________________________________________________________________________________

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