Published: June 21, 2008 11:19 pm            

Integris restructures to protect its status

Integris Northwest Health Foundation is taking action to protect its donors and safeguard its ability to raise funds in support of Integris Bass Baptist Health Center.

Pension Protection Act of 2006 increased the ability of the IRS to scrutinize those who donate to specific classifications on non-profit organizations. This act was written with the intent to curb abuses by individuals who unlawfully use non-profit organizations for their own benefit.

Under the new rules, if the IRS determines a particular gift is too large for an organization, or if a gift is received from the wrong type of donor, the organization’s tax exempt status can be jeopardized. Furthermore, the donor can suffer repercussions. For example, a donor who makes a gift to an organization that loses its tax-exempt status can find the tax deductibility of their gift being questioned.

“Unfortunately for us, those types of organizations being scrutinized include organizations like the Integris Northwest Health Foundation,” said Jeff Tarrant, president of Integris Bass Baptist Health Center, who is familiar with the ruling. “In particular, the IRS is beginning to scrutinize large donations. We do not want the generosity and intent of our donors to be questioned by the IRS.”

To protect its donors and its own tax-exempt, non-profit status, Integris Northwest Health Foundation is restructuring its corporation and becoming a designated fund within Integris Rural Health Foundation. This Foundation is a 501(c)3, non-profit organization that is not subject to the same extreme IRS scrutiny as the current entity.

“This move protects our ability to raise funds locally for our hospital and our community. We will not worry that the IRS might question the intent of our donors,” said Joel Champlin, chairman of Integris Northwest Health Foundation board.

“This move is a proactive response to the changing tax regulation landscape. By working through the Integris Rural Health Foundation, we are gaining the security of a larger organization, without changing the way we do business. Our name will stay the same. Donations made to our foundation will remain tax deductible. Most importantly, all donations will be used locally, to improve the health of our community,” Champlin said.