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To: rlmorel
Commonly hospitals have a not-for-profit status as a way to run their business and have certain tax-exempt privileges and also some legal liability protections. Tax-exempt does not mean that when people give the hospital money that it is deductable from that person's income taxes. It just means that the hospital does not have to pay taxes on its "profits," such as they are.

Those same hospitals may have nonprofit "foundations" that fundraise like a charity with the donations being tax-deductable for people who donate to that foundation. These are often directed at purchases of equipment and facilities.

You may be farther away from working for a nonprofit than you realize.

I think the distinction is important because I happen to know some really rich people who run, IMO, phony-baloney foundations that I'd term "vanity charities." I rather despise the way they've turned a self-serving hobby enterprise into a fatuous "philanthropy."

50 posted on 08/14/2011 12:04:09 PM PDT by Mamzelle
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To: Mamzelle

All you say is true, but the truth is, that my organization is officially a nonprofit corporation and any donations to the foundation are tax deductible. Actually, the majority of American hospitals are 501c organizations.

I don’t see anything inherently good or bad in that, it is simply a way of organizing the hospital’s operations. It doesn’t mean we help poor people or underprivileged people to a greater or lesser degree, or that we are in some way better than one of the big for-profit hospital organizations. I feel that if they can make a profit, give it back to their shareholders and provide quality care that patients are happy with, then I think that is great.

What it means is we do not have shareholders, and all of our “profits” must be re-invested into the organization in some way, not paid out to individuals of any kind.

Personally, I don’t get any kind of lift or feeling of superiority by saying I work for a nonprofit. It is not relevant or important to me, except in the key way that the organization is focused on its own perpetuation by being forced to invest profits in itself, so I feel that it makes our perpetuation more likely and our institution more viable.

We are also a non-union hospital, and THAT gives me a great deal of satisfaction.


52 posted on 08/14/2011 7:45:10 PM PDT by rlmorel ("When marching down the same road, one doesn't need 'marching orders' to reach the same destination")
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