2015-05-08T15:39:58-05:00 2014-06-30 861065772 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2013-07-01 363297853 Sanford Health Foundation SANF 6053285700 101 S Reid Street No 202 Sioux Falls SD 57103 JoAnn Kunkel Chief Financial Officer 6053331000 2015-05-08 1 Anne Fulton P00941863 6123974000 2013 2016-02-25 16:41:14Z Kelby Krabbenhoft 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 253040804 0 X www.sanfordhealthfoundation.org X 1983 SD Dedicated to raising funds in support of Sanford Health's mission to improve the human condition through the work of health and healing. 15 6 0 500 0 0 20150514 21292065 0 84516 26461485 25246870 17236 16788 46629235 46640239 39186827 32316005 0 0 1970493 1471434 0 0 1443664 1084598 926817 42241918 34714256 4387317 11925983 605215311 642430597 6401958 4419212 598813353 638011385 Sanford Health Foundation exists to encourage philanthropy in support of Sanford Health and other exempt entities associated with Sanford Health in providing health care, medical and educational services as well as supporting research activities and initiatives. 0 0 3360512 3360512 84516 The Foundation continues its proud tradition of supporting the local healthcare-related programs, services, and operations of Sanford Health while also seeking regional, national and international support for research and initiatives. Specifically, grants helped provide patient care and family support ($2,117,930), equipment and facility improvement projects ($1,167,267) and other internal programs ($75,315). 463499 463499 Additional grants helped support healthcare education and research programs. Sanford Health is dedicated to providing continuing training and education for its employees, ensuring that patients have the benefit of the most current protocols in care delivery. 28491994 28491994 Grants help support the Sanford Initiatives and collaborations with healthcare organizations such as the Children's Oncology Group and nursing and medical schools affiliated with Sanford Health. 32316005 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 9 0 1 0 0 0 0 0 0 0 0 0 0 0 0 X 15 6 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MN OR X JoAnn Kunkel CFO 6053331000 1305 W 18th Street Sioux Falls SD 571175039 Barb Everist Trustee 0.10 5.30 X 0 0 0 Barbara Stork Trustee (thru Dec 13) 0.10 5.30 X 0 0 0 Brent Teiken Trustee 0.10 5.30 X 0 0 0 Christopher Meeker MD Trustee 0.10 59.90 X 0 393696 30403 David Beito Trustee 0.10 5.30 X 0 0 0 Don Morton Trustee 0.10 5.30 X 0 0 0 Jerome Feder Trustee 0.10 5.30 X 0 0 0 Jim Entenman Trustee 0.10 5.30 X 0 0 0 Lauris Molbert Trustee 0.10 5.30 X 0 0 0 Maria Bell MD Trustee 0.10 59.90 X 0 776820 40322 Mark Paulson MD Trustee 0.10 59.90 X 0 221733 29828 Patrick Durick Trustee 0.10 5.30 X 0 0 0 Richard Hardie MD Trustee 0.10 59.90 X 0 760534 40425 Ronald Moquist Trustee 0.10 5.30 X 0 0 0 Thomas Hruby Trustee 0.10 5.30 X 0 0 0 Kelby K Krabbenhoft Sanford Health President & CEO 0.10 59.90 X X 0 1320464 22992 Kelby K Krabbenhoft Deferred Comp Sanford Health President & CEO 0.10 59.90 X X 0 0 608477 JoAnn L Kunkel Chief Financial Officer Corp 0.10 59.90 X 0 463362 39674 Brian Mortenson thru Sept 13 President - Sanford Health Foundation 20.00 40.00 X 298145 0 35000 Deborah Koski COO - Sanford Health Foundation 20.00 40.00 X 194951 0 34613 Christine McDonald-Dockter Chief Development Officer 20.00 40.00 X 0 234585 34433 Marlin Van Peursem Director of Finance (thru Oct 13) 60.00 0.00 X 175951 0 30829 Chad Rohlfs Director of Development 60.00 0.00 X 117529 0 32965 Lisa Carlson Former Chief Financial Officer Corp 0.10 59.90 X 0 1614478 21738 786576 5785672 1001699 4 1 1 0 0 21292065 40837 21292065 Purchased Services 541900 84516 84516 84516 23965920 23965920 207681515 206400565 1280950 1280950 1280950 Non-operating interest 525990 14396 14396 Donor CSV Adj 525990 2392 2392 16788 46640239 84516 0 25263658 32316005 32316005 378185 378185 794884 60821 734063 36453 3502 32951 179109 80994 98115 82803 31148 51655 21742 21742 15401 9124 6277 111 111 69083 13816 55267 1260 1260 184171 178972 5199 19504 499 19005 1238 1238 60821 60821 7554 7554 Uncollectible Pledges 276174 276174 Professional Dues 101622 365 101257 Fundraising Materials 48037 48037 Donor Stewardship 13055 13055 107044 107044 34714256 32316005 954587 1443664 200500 530983 9668720 22459758 21596 11555 673423 268072 405279 405351 594181504 618266211 737712 756739 605215311 642430597 36637 22029 5734193 3876864 631128 520319 6401958 4419212 X 434818575 476855312 131256331 127393724 32738447 33762349 598813353 638011385 605215311 642430597 X 11925983 15685570 11586479 X 0 1 X 1 0 X X X 0 0 0 Sanford USD Medical Center 460227855 3 1 28135119 1 28135119 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 32738447 952641 71261 33762349 30885249 1773556 79642 32738447 29250489 1604392 30368 30885249 26563483 2527154 159852 29250489 23816626 2689481 57376 26563483 1.00000 0 0 105632 24189 81443 567791 243883 323908 405351 Annuities payable 520319 520319 X Part IV, Line 2b: The organization manages custodial accounts owned by related organizations of Sanford Health with the funds balance co-mingled with other investment assets of the organization. The use of the funds balance will be overseen and expended by the owner. Part V, Line 4: The organization's use of the endowment funds is to meet the donors intent in providing health care, medical, or educational services to Sanford Health. Part X, Line 2: Certain controlled organizations are subject to income taxes. Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting basis of assets and liabilities based on enacted tax rates and laws. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year. The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. Sanford Health Foundation did not have an income tax liability at June 30, 2014; however, some related organizations have established reserves. 1 Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 501(c)(3) 28135119 See Form 990, Page 2, Part III Edith Sanford Breast Cancer Foundation 101 S Reid Street Sioux Falls SD 57103 450404126 501(c)(3) 4180886 See Form 990, Page 2, Part III 2 0 Part I, Line 2: Grants are disbursed by supporting organization only after the expenditure has been made and properly authorized by the supported organization along with related documentation indicating the fulfillment of donor wishes. 1 1 0 0 0 0 1 1 0 Christopher Meeker MD Trustee 0 393696 0 0 0 0 0 10000 0 20403 0 424099 0 0 Maria Bell MD Trustee 0 695606 0 0 0 81214 0 17152 0 23170 0 817142 0 0 Mark Paulson MD Trustee 0 207989 0 0 0 13744 0 11296 0 18532 0 251561 0 0 Richard Hardie MD Trustee 0 754303 0 0 0 6231 0 20400 0 20025 0 800959 0 0 Kelby K Krabbenhoft Sanford Health President & CEO 0 1117709 0 0 0 202755 0 0 0 22992 0 1343456 0 0 Kelby K Krabbenhoft Deferred Comp Sanford Health President & CEO 0 0 0 0 0 0 0 608477 0 0 0 608477 0 0 JoAnn L Kunkel Chief Financial Officer Corp 0 408018 0 0 0 55344 0 19176 0 20498 0 503036 0 0 Brian Mortenson thru Sept 13 President - Sanford Health Foundatio 216628 0 50000 0 31517 0 18020 0 16980 0 333145 0 0 0 Deborah Koski COO - Sanford Health Foundation 173446 0 0 0 21505 0 14316 0 20297 0 229564 0 0 0 Christine McDonald-Dockter Chief Development Officer 0 212451 0 0 0 22134 0 16342 0 18091 0 269018 0 0 Marlin Van Peursem Director of Finance (thru Oct 13) 123162 0 0 0 52789 0 10445 0 20384 0 206780 0 0 0 Chad Rohlfs Director of Development 117529 0 0 0 0 0 10113 0 22852 0 150494 0 0 0 Lisa Carlson Former Chief Financial Officer Corp 0 243062 0 0 0 1371416 0 12153 0 9585 0 1636216 0 0 Part I, Line 1a Certain items listed on Line 1a are provided by related organizations. Part I, Line 3: The Executive Compensation Committee of the Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm annually to review the total compensation arrangements of the officers and executives of the organization, including the CEO, and to report the findings to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford Board of Trustees. The most recent study was completed in 2014. Part I, Lines 4a-b Part I, Line 4a: The following individuals participated in a severance arrangement and received payments during the year: Lisa Carlson $1,331,670 Marlin Van Peursem $52,789 Part I, Line 4b: Certain executives participate in a defined benefit SERP Plan. There were no individuals who received payments during the year. Part I, Line 6 Sanford physicians are compensated based on the professional services they perform within the clinic in which they provide care. Generally, the model is based on production. Part I, Line 7 Certain employees are eligible for a discretionary incentive bonus, based on financial targets and other goals. Form 990, Schedule J, Supplemental: Compensation reported on Schedule J includes: (B)(i) Base compensation - salaries are based on the experience and performance of each executive and benchmarked using independent compensation survey information. (B)(ii) Bonus & incentive compensation - as part of executive compensation, individuals may be eligible for incentive performance compensation, however if the organization does not meet its financial targets, incentive payments are not paid, regardless of performance. (B)(iii) Other reportable compensation - generally includes taxable executive benefits. (C) Deferred compensation - includes employer contributions to pension plans and the increase (or decrease) in the actuarial value (actuarial value factors include age, tenure and salary) of the defined benefit plans. (D) Nontaxable benefits - generally include health insurance premiums. A memo regarding executive compensation, written by the Chairman of the Sanford Board of Trustees, is on file and available upon request. Compensation paid to the Sanford Board of Trustees is for full-time professional responsibilities as physicians, administrators or employees of the organization. The total compensation paid to Kelby Krabbenhoft of $1,320,464 is comprised of Base Salary of $1,117,709, Incentive Compensation of $0 and Other Taxable Earnings of $202,755. In addition, an amount of $608,477 has been reported for the estimated amount of ratable increase in value of the defined benefit pension plan, defined benefit SERP and a Gift Agreement Management Continuity Retention plan. X 3 40837 Average high/low price 0 0 1 0 Part I, Column (b): The organization used the number of contributors method. Form 990, Part VI, Section A, line 2 The following officers, board members, and key employees are employees of Sanford or its related organizations. Many of these employees also serve on other related Sanford boards, or have business relationships with each other that span the organization as a whole: Christopher Meeker, Maria Bell, Mark Paulson, Richard Hardie, Kelby Krabbenhoft, JoAnn Kunkel, Brian Mortenson, Deborah Koski and Christine McDonald-Dockter. Form 990, Part VI, Section A, line 6 Sanford is governed by a Board of Trustees (BOT) that has ultimate strategic and decision making authority. The BOT delegates certain activities and responsibilities to Boards of each of Sanford's primary operating subsidiaries. The unique nature and complexity of the subsidiaries requires each to have a delegated Board with a singular entity focus. Such bodies, referred to as Boards of Directors and Boards of Governors, address matters such as credentialing, accreditation standards, developing budgets, programs and facilities on an entity-specific basis, and generally consist of individuals distinct from the BOT. These Boards function much like committees in a traditional corporate structure. The BOT then act as a holding company Board, synthesizing and reconciling each entity's programs and budgets into a system-wide strategic plan. This structure of governance produces a significant number of trustees, governors and directors. Form 990, Part VI, Section A, line 7a The Sanford Board of Trustees appoints the board members for the Board of Directors of Sanford Health Foundation. Form 990, Part VI, Section A, line 7b The Sanford Board of Trustees approves the actions approved by the Board of Directors of Sanford Health Foundation. Form 990, Part VI, Section B, line 11 The Form 990 is prepared internally by the finance department and reviewed by executive management. An external accounting firm reviews the return and prepares return highlights and key disclosures for the Board of Trustees meeting prior to the return filing date. Before the return is filed, a complete copy is provided to the current Board of Trustees. Form 990, Part VI, Section B, line 12c The annual Conflict of Interest disclosure process is managed by the Chief Compliance Officer (CCO). The CCO is responsible for assuring that all completed forms are returned in a timely and complete manner. Conflict of Interest questionnaires are sent to System Trustees, members of the governing boards of subsidiary entities, officers, and key employees for all entities subject to the IRS Form 990 filings. The disclosures are summarized for review by the executive committee of the Board of Trustees, pursuant to policy. This review allows: 1) The Board to acquire an awareness of financial relationships of board members and key management employees and can invoke the recusal process on a case-by-case basis when potential conflicts are implicated in Board decisions and deliberations, and, 2) Gives the Board the opportunity to seek additional information and clarification about disclosures to determine potential conflicts of interest, and how to manage them. Form 990, Part VI, Section B, line 15 The Executive Compensation Committee of the Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm annually to review the total compensation arrangements of the officers and executives of the organization, including the CEO, and to report the findings to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford Board of Trustees. The most recent study was completed in 2014. Form 990, Part VI, Section C, line 19 Although the organization does not maintain a website where the public can access these documents, it would respond individually to any requests or inquiries from the public for these documents. Form 990, Part XI, line 9: Change in value of split-interest agreements 50,848. Transfer from related tax-exempt org for payroll and operating expenses 11,535,631. Sanford 801 Broadway Drive Fargo ND 58122 271218956 Supporting Organization ND 501(c)(3) 11-II 0 Sanford Health 1305 West 18th Street Sioux Falls SD 57117 311527032 Supporting Organization SD 501(c)(3) 11-II Sanford 1 Sanford USD Medical Center 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460227855 Hospital SD 501(c)(3) 3 Sanford Health 1 Edith Sanford Breast Cancer Foundation 2301 60th Street N Sioux Falls SD 57104 450404126 Foundation ND 501(c)(3) 11-II Sanford Health 1 Sanford Clinic 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460447693 Clinical Services SD 501(c)(3) 3 Sanford Health 1 Sanford Home Health 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460282134 Home Health Services SD 501(c)(3) 9 Sanford Health 1 Sanford Health Network 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460388596 Hospitals/Clinics SD 501(c)(3) 3 Sanford Health 1 Sanford Research 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460450378 Research SD 501(c)(3) 3 Sanford Health 1 Sanford World Clinics 1305 West 18th Street Sioux Falls SD 57117 262707628 Healthcare SD 501(c)(3) 3 Sanford Health 1 Sanford North PO Box 2010 Fargo ND 58122 450385890 Supporting Organization ND 501(c)(3) 11-II Sanford 1 Sanford Medical Center Fargo PO Box 2010 Fargo ND 58122 450226909 Hospital ND 501(c)(3) 3 Sanford North 1 F-M Ambulance Service Inc 2215 18th Street S Fargo ND 58103 450344371 EMT ND 501(c)(4) Sanford North 1 Sanford Health Foundation North PO Box 2010 Fargo ND 58122 450398104 Foundation ND 501(c)(3) 7 Sanford North 1 Sanford Clinic North PO Box 2010 Fargo ND 58122 911770748 Clinics ND 501(c)(3) 9 Sanford North 1 Sanford Health Network North PO Box 2010 Fargo ND 58122 450409348 Hospitals/Clinics ND 501(c)(3) 11-II Sanford North 1 Sanford Hillsboro PO Box 609 Hillsboro ND 58045 450230400 Hospital ND 501(c)(3) 3 Sanford Health Network North 1 Sanford Health Foundation Hillsboro PO Box 609 Hillsboro ND 58045 363542187 Foundation ND 501(c)(3) 7 Sanford Hillsboro 1 Sanford Medical Center Mayville 42 6th Avenue SE Mayville ND 58257 450228899 Hospital ND 501(c)(3) 3 Sanford Health Network North 1 Sanford Medical Center Thief River Falls 120 Labree Avenue S Thief River Falls MN 56701 410709579 Hospital MN 501(c)(3) 3 Sanford Health Network North 1 Sanford Medical Center Wheaton 401 12th Street N Wheaton MN 56296 272042143 Hospital/Clinic MN 501(c)(3) 3 Sanford Health Network North 1 Sanford Health of Northern Minnesota 1300 Anne Street NW Bemidji MN 56601 411266009 Hospital MN 501(c)(3) 3 Sanford North 1 Sanford Health Foundation of Northern Minnesota 1300 Anne Street NW Bemidji MN 56601 411389317 Foundation MN 501(c)(3) 11-II Sanford Health of Northern Minnesota 1 Baker Park Inc 803 Dewey Avenue NW Bemidji MN 56601 411372480 Low Income Senior Housing MN 501(c)(3) 9 Sanford Health of Northern Minnesota 1 North Country Medical Clinic 1300 Anne Street NW Bemidji MN 56601 411753855 Family Practice Medical Clinic MN 501(c)(3) 3 Sanford Health of Northern Minnesota 1 Sanford West 300 North 7th Street Bismarck ND 58501 450397195 Supporting Organization ND 501(c)(3) 11-II Sanford 1 Sanford Bismarck 300 North 7th Street Bismarck ND 58501 450226700 Hospital ND 501(c)(3) 3 Sanford West 1 Sanford Living Centers 1000 18th Street NW Suite 1 Bismarck ND 58554 450416454 Long-term Care Facility ND 501(c)(3) 9 Sanford Bismarck 1 Sanford Health Foundation West 300 North 7th Street Bismarck ND 58501 450397196 Foundation ND 501(c)(3) 7 Sanford Bismarck 1 Medcenter One Inc Auxiliary 300 North 7th Street Bismarck ND 58501 237293043 Supporting Organization ND 501(c)(3) 11-I Sanford Bismarck 1 Sanford Heart of America Health Plan 810 South Main Rugby ND 58368 450346132 Insurance ND 501(c)(4) Sanford Health Plan 1 National Student Housing-South Dakota LLC 100 S Phillips Ave Sioux Falls SD 57104 202129839 Investment SD N/A RAC Rentals LLC 100 S Phillips Ave Sioux Falls SD 57104 261961077 Investment SD N/A Southwest MN Radiation Center LLC 1018 6th Avenue Worthington MN 56187 460447693 Radiation Services MN N/A Sanford Home Medical Equipment Inc 2710 W 12th Street Sioux Falls SD 57105 460388597 Healthcare Equipment SD N/A C 1 Sanford Health Plan 300 Cherapa Place Sioux Falls SD 57103 911842494 Insurance SD N/A C 1 Sanford Health Plan of MN 300 Cherapa Place Sioux Falls SD 57103 460445852 Insurance MN N/A C 1 Bemidji Medical Equipment Inc 1300 Anne Street NW Bemidji MN 56601 411551725 Retail Sales of DME MN N/A C 1 North Country Management Inc 1300 Anne Street NW Bemidji MN 56601 411820025 Management Services MN N/A C 1 Sanford Frontiers 1305 W 18th Street PO Box 5039 Sioux Falls SD 571175039 455436599 Weight Loss/Fitness SD N/A C 1 SOB Inc 2701 S Minnesota Avenue Suite 2 Sioux Falls SD 57105 460442628 Air Transportation SD Sanford Health Foundation C -1552865 2333191 1.00000 1 Sanford Affiliated Services Inc 300 N 7th Street Bismarck ND 58501 450403146 Investment Activity ND N/A C 1 Sanford World Clinics - Ghana Sarbah Road Tantri Lorry Station Cape Coast GH Healthcare GH N/A C 1 Shanghai Sanford Healthcare Management Consulting Co Ltd 188 Yesheng Road Room A-862 Guoma Shanghai CH Healthcare CH N/A C 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sanford USD Medical Center B 28135119 Cash Method Edith Sanford Breast Cancer Foundation B 4180886 Cash Method