MN Hospital Assn. Trustee Conference 2011 presentation

1. Compliance 101: Scrutiny, Accountability, and Transparency Minnesota Hospital Association January, 2011

3. Supplemental Resource Download this pamphlet from the Minnesota Council on Nonprofits website: http://www.mncn.org/info/principles_and_practices.pdf

16. “ Intermediate Sanctions” The penalties imposed under Internal Revenue Code Section 4958 on persons involved in excess benefit transactions. Intermediate sanctions are an alternative to the revocation of an organization’s tax-exempt status when private individuals receive an excess benefit.

18. Individuals covered under IS  All voting board members and their family members  All CEOs/Executive Directors and their family members  All treasurers and CFOs and their family members  “ Persons with a material financial interest in certain healthcare provider-sponsored organizations if a hospital that participates in the provider-sponsored organization is an applicable tax-exempt organization.” (And their family members)  Generally, donors of more than $5,000 if their contribution exceeds 2% of the nonprofit’s revenue for any period of time, and their family members.

20. Excess benefit transactions -- general Any transaction between an exempt organization (nonprofit) and a disqualified person where the value of the benefit to the individual exceeds that provided to the exempt organization