My local action went nationwide!!!

[davsand]

HOLY COW!!! Something I worked on locally has gone nationwide! I was on the local board that started this action! I helped write the findings on this that made the Illinois Dept of Revenue take this action...

It has been all over the local media, the Wall Street Journal did an article on it a couple days ago-but today it hit the Chicago Trib and now the Miami Herald.


Hospital faces tax-break loss on charity care

By Bruce Japsen
Tribune staff reporter
Published February 20, 2004

Holding hospitals to their promise to provide charity care to the poor and uninsured, the state is moving to revoke the tax exemption of an Urbana hospital accused of being overly aggressive in its attempts to collect money from poor and uninsured patients.

The Illinois Department of Revenue is taking steps to revoke the property tax exemption given to Provena Covenant Medical Center. The perk, long enjoyed by nonprofit hospitals, is given in large part because of the hospitals' promise to provide charitable care to those who cannot afford to pay.

In the case against Provena Covenant, the state agreed with a Champaign County tax review board's assessment and its own subsequent investigation, which found the hospital "didn't prove that the property was being used in a charitable manner."

snip...

http://www.chicagotribune.com/business/chi-0402200198feb20,1,3807652.story?coll=chi-business-hed

Urbana, Ill., Hospital Loses Tax-Exemption Ruling

By Mike Monson, The News-Gazette, Champaign-Urbana, Ill. Knight Ridder/Tribune Business News


Feb. 19--URBANA, Ill. - The Illinois Department of Revenue has ruled that Provena Covenant Medical Center in Urbana is not a tax-exempt charitable organization a ruling that could force the hospital to pay $1.1 million annually in local property taxes.

Champaign County and Provena officials confirmed the ruling was handed down on Friday.

Illinois Department of Revenue officials did not return telephone calls Tuesday...

snip...

http://www.miami.com/mld/miamiherald/business/national/7991730.htm

You can fight, and it CAN have an impact. I knew very little about property tax code, IRS code or even community benefits statements when I picked this project up over a year and a half ago.

I sit here now, and I am firmly convinced that the only way we will see any change in medical billing and charity care policies is if we fight for them locally.

Stay active, and please do not give up--no matter what your issue is!

Laura

[quispquake]

1. Congrats!

That's awesome, and something I think we tend to forget when the 'big picture' is as messed up as it is...everyone can make a difference!!!

Kudos!!!
pp23

[HootieMcBoob]

2. Excellent Work!

Congratulations, on a job well done and for making a real positive impact in your community.

[davsand]

3. Thank you, both. Does it give you hope that your community can do it too?

THAT is my main reason for putting this up--anyone can make it happen.

Laura

[TacticalPeek]

4. Oorah!

Perseverance pays off.

:toast:

[slor]

5. Great Work!

Keep it up, I would have never even known about the charity care policy had you not done this.

[davsand]

7. Most people DON'T know!

The very idea that hospitals are supposed to offer charity care is a big surprise to most people. It is there--and they don't want you to know about it or ask for it. THAT behavior is so wrong--because your local community probably subsidizes that hospital in the form of property tax exemptions. If you rent or own property you are PAYING to have that hospital there!!!

Go get them--stand up and fight! You can win.


Laura

[denverbill]

6. Congrats!! Big-time. That's a really good thing too.

[sonias]

8. Way to go davsand!

Good job!

I may get flamed for this, but I think some churches should get the same treatment. I know of one here in Austin, that does little in the area of social services, except those that benefit their rich church members. Plus they have the audacity to get involved in local politics. Those aren't churches they're little tax shelters.


Sonia

[davsand]

9. There is a very clear line churches can't cross.

If that local church IS doing anything in the political arena, that is a big no-no for the IRS 501 (C)3 holders. You may want to look into it.

"The exempt purposes set forth in IRC Section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening of neighborhood tensions; elimination of prejudice and discrimination; defense of human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

To be organized exclusively for a charitable purpose, the organization must be a corporation, community chest, fund, or foundation. A charitable trust is a fund or foundation and will qualify. However, an individual or a partnership will not qualify. The articles of organization must limit the organization's purposes to one or more of the exempt purposes set forth in IRC Section 501(c)(3) and must not expressly empower it to engage, other than as an insubstantial part of its activities, in activities that are not in furtherance of one or more of those purposes. This requirement may be met if the purposes stated in the articles of organization are limited in some way by reference to IRC Section 501(c)(3). In addition, assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. To establish that an organization's assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision insuring their distribution for an exempt purpose in the event of dissolution. Although reliance may be placed upon state law to establish permanent dedication of assets for exempt purposes, an organization's application can be processed by the IRS more rapidly if its articles of organization include a provision insuring permanent dedication of assets for exempt purposes. For examples of provisions that meet these requirements, download Publication 557, Tax-Exempt Status for Your Organization."

They are most specific about political activities for churches and this section may be of some interest to you:

An IRC Section 501(c)(3) organization may not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. Whether an organization is engaging in prohibited political campaign activity depends upon all the facts and circumstances in each case. For example, organizations may sponsor debates or forums to educate voters. But if the forum or debate shows a preference for or against a certain candidate, it becomes a prohibited activity..."

I'd suggest a reading of this entire advice memo cited here (link follows)--it can help you a lot in looking at these organizations and determining if they need a longer look.

http://www.irs.gov/charities/article/0,,id=96099,00.html

Best of luck, and I don't think you should worry about wanting charities to follow the laws. I'll not flame you for that at all--I've gotten enough crap for taking on the local Catholic hospital to understand your point fully.

Laura

[alittlelark]

10. You go girl!!!!

Awesome....I'll bet it feels good!!!:toast:

:yourock:

[ninkasi]

11. Bravo!

You should be proud, and the rest of us should be inspired. You did good.

[proud patriot]

12. Smiling from ear to ear

:D

[Wapsie B]

13. Way to go!

Hospitals that hide behind the cross just make my blood boil. Not-for-Profit institutions should take this as a warning that the public is watching.

[Kanary]

14. David took on Goliath, and WON!

Such good news, and an inspiration. I'm going to share this, along with the links.

So, this actually means that they can't go after uninsured poor folk? Because that's what's been happening.

Bet you're flying high right about now!

:toast:

Kanary

[kiahzero]

15. Congratulations (n/t)

[dmr]

16. davsand, you rock

Congratulations! You have done great work, but have also given us a lot of wonderful and useful information. Thank you!
:)

[unfrigginreal]

17. Whoa! Big Congrats!

Best thing I've read on this board in a long time!!

:yourock: