Its important that everyone who desires to have a vote for the hospital board be able too. If Lee’s going to be a private-for-profit hospital and continue to expand on every corner, maybe they should no longer have a 301c status.
You raise an interesting point.. Regarding 501 (c)(3) rules: "The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction."
Further, If they change governance and want the charitable status of 501, how will their present charity change. In order for donations to be tax deferred donations, there must be charity provided in exchange. How will a private board provide transparent information on the charitable works?
Its important that everyone who desires to have a vote for the hospital board be able too. If Lee’s going to be a private-for-profit hospital and continue to expand on every corner, maybe they should no longer have a 301c status.
You raise an interesting point.. Regarding 501 (c)(3) rules: "The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction."
Further, If they change governance and want the charitable status of 501, how will their present charity change. In order for donations to be tax deferred donations, there must be charity provided in exchange. How will a private board provide transparent information on the charitable works?