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        <Fundraising>3763</Fundraising>
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        <ManagementAndGeneral>1445</ManagementAndGeneral>
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        <ManagementAndGeneral>21104</ManagementAndGeneral>
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        <ManagementAndGeneral>1023</ManagementAndGeneral>
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        <Fundraising>6627</Fundraising>
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      <OtherExpenses>
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        <ManagementAndGeneral>4341</ManagementAndGeneral>
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        <Identifier>DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS:</Identifier>
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        <Explanation>THE PRIMARY PURPOSE OF THE ST. LUKE'S FOUNDATION ENDOWMENT FUNDS IS TO MAKE GRANTS TO ST. LUKE'S HOSPITAL AND OTHER ORGANIZATIONS TO PURCHASE MEDICAL EQUIPMENT AND SUPPLIES AND TO PROVIDE HEALTHY LIFESTYLE EDUCATION TO BOTH PUBLIC AND HOSPITAL EMPLOYEES.</Explanation>
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        <ReturnReference>PART X:</ReturnReference>
        <Explanation>A NOTIFICATION LETTER HAS BEEN RECEIVED FROM THE INTERNAL REVENUE SERVICE STATING THAT THE FOUNDATION IS A TAX-EXEMPT ORGANIZATION UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE SECTION 501(C)(3). THE FOUNDATION HAS ELECTED TO ADOPT GUIDANCE IN THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE FOUNDATION FOLLOWS THE ACCOUNTING STANDARD FOR CONTINGENCIES FOR EVALUATING UNCERTAIN TAX POSITIONS. THE ADOPTION OF THIS STANDARD HAD NO EFFECT ON THE FINANCIAL STATEMENTS. THE FOUNDATION'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES. THE TAX RETURNS FOR THE YEARS 2009 TO 2011 ARE OPEN TO EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES.</Explanation>
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          <BusinessNameLine1>ST LUKE'S HOSPITAL OF DULUTH</BusinessNameLine1>
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      <NumberOf8283Received>0</NumberOf8283Received>
      <AnyPropertyThatMustBeHeld>0</AnyPropertyThatMustBeHeld>
      <ReviewProcessUnusualNCGifts>1</ReviewProcessUnusualNCGifts>
      <ThirdPartiesUsed>0</ThirdPartiesUsed>
      <Form990ScheduleMPartII>
        <Identifier>THIRD PARTY USE:</Identifier>
        <ReturnReference>PART I, LINE 32B:</ReturnReference>
        <Explanation>SCHEDULE M, LINE 32B: DOUNDATION MANAGEMENT REVIEWS EVERY NON-STANDARD CONTRIBUTION TO DETERMINE WHETHER IT IS APPROPRIATE FOR THE FOUNDATION TO ACCEPT IT. IF THE ANSWER IS NOT CLEAR, THE MATTER IS REVIEWED WITH THE EXECUTIVE COMMITTEE AND THE FULL BOARD IF NECESSARY.</Explanation>
      </Form990ScheduleMPartII>
    </IRS990ScheduleM>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 1</ReturnReference>
        <Explanation>THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE POWERS AND AUTHORITY OF THE BOARD OF DIRECTORS OF THIS CORPORATION IN TRANSACTING THE REGULAR BUSINESS OF THE CORPORATION, INCLUDING DIRECTING THE MANAGEMENT OF THE PROPERTY, AFFAIRS AND BUSINESS OF THIS CORPORATION, DURING THE INTERVAL BETWEEN MEETINGS OF THE BOARD OF DIRECTORS, SUBJECT AT ALL TIMES TO THE DIRECTION AND CONTROL OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL NOT HAVE THE POWER TO AMEND THE ARTICLES OF INCORPORATION OR THESE BYLAWS, THE POWER TO REMOVE A DIRECTOR OR OFFICER, OR THE POWER TO FILL A VACANT BOARD SEAT OR OFFICER POSITION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>THE SOLE MEMBER OF THE CORPORATION SHALL BE THE HOSPITAL. THE HOSPITAL SHALL HAVE NO VOTING RIGHTS, EXCEPT AS OTHERWISE PROVIDED HEREIN AND IN THE CORPORATION'S ARTICLES OF INCORPORATION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>DIRECTORS SHALL BE ELECTED TO THE BOARD OF THE CORPORATION BY THE BOARD OF DIRECTORS OF THE HOSPITAL, OR BY AN OFFICER OF THE HOSPITAL DESIGNATED BY THE BOARD OF DIRECTORS OF THE HOSPITAL. UPON OR IN ANTICIPATION OF THE EXPIRATION OF THE TERM OF ANY DIRECTOR OF THIS CORPORATION, THE BOARD OF DIRECTORS OF THIS CORPORATION, OR A COMMITTEE APPOINTED THEREBY FOR SUCH PURPOSE, SHALL NOMINATE, BY A VOTE OF THE MAJORITY OF THE DIRECTORS WHOSE TERM SHALL NOT HAVE EXPIRED, SUCH NUMBER OF INDIVIDUALS TO SERVE AS DIRECTORS OF THIS CORPORATION AS NECESSARY TO FILL THE EXPIRED OR EXPIRING TERMS. THE BOARD OF DIRECTORS SHALL PRESENT THE NAME OF EACH INDIVIDUAL NOMINATED TO BE A DIRECTOR OF THIS CORPORATION TO THE HOSPITAL FOR CONSIDERATION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>AN AMENDMENT SHALL BECOME EFFECTIVE UPON THE APPROVAL OF THE BOARD OF DIRECTORS OF THE HOSPITAL</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>MANAGEMENT REFERENCED MULTIPLE SOURCES OF INFORMATION IN ORDER TO ACCURATELY PREPARE THE 2011 FORM 990. THESE SOURCES INCLUDE THE INTERNAL REVENUE SERVICE WEBSITE, HEALTHCARE TRADE ASSOCIATIONS AND OTHER VARIOUS PUBLICATIONS. ONCE THE FORM 990 WAS PREPARED, IT WAS REVIEWED BY THE FOLLOWING GROUPS: 1. OFFICERS AND SENIOR MANAGEMENT (OCT 2012) 2. BOARD OF DIRECTORS (OCT 2012) THE ABOVE GROUPS WERE PROVIDED WITH A COMPLETE COPY OF THE 2011 FORM 990 IN ADVANCE. THE FORM 990 REVIEW WAS LISTED AS AN AGENDA ITEM ON THE BOARD OF DIRECTORS AGENDA. THE CHIEF FINANCIAL OFFICER PROVIDED AN OVERVIEW OF THE RETURN AND ANSWERED ANY QUESTIONS OR CONCERNS FROM THE BOARD. THE RETURN WAS THEN FILED ON OR BEFORE NOVEMBER 15, 2012.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>1. ALL EMPLOYEES AND BOARD MEMBERS OF THE ORGANIZATION MUST DISCLOSE POTENTIAL CONFLICTS OF INTEREST TO THEIR SUPERVISOR(S), AND REFRAIN FROM MAKING DECISIONS BASED ON OUTSIDE INTERESTS. 2. AT LEAST ANNUALLY, AFFECTED INDIVIDUALS MUST REVIEW THIS POLICY AND COMPLETE THE CONFLICT OF INTEREST STATEMENT. A. THE ST. LUKE'S COMPLIANCE OFFICE MAINTAINS A LIST OF AFFECTED INDIVIDUALS. B. THE ST. LUKE'S COMPLIANCE OFFICE REQUESTS THAT AFFECTED INDIVIDUALS REVIEW THIS POLICY, COMPLETES AND RETURNS THE CONFLICT OF INTEREST STATEMENT. C. THE ST. LUKE'S COMPLIANCE OFFICE REVIEWS THE STATEMENTS OF EMPLOYEES AND DIRECTORS AND NOTIFES THE APPROPRIATE EXECUTIVE OF ANY POTENTIAL CONFLICT OR DUALITY OF INTEREST. D. THE CEO REVIEWS THE STATEMENTS OF THE EXECUTIVE DIRECTOR FOR POTENTIAL CONFLICT OR DUALITY OF INTEREST. E. THE CHAIRMAN OF THE BOARD OF DIRECTORS REVIEWS THE STATEMENTS OF THE CEO AND BOARD MEMBERS. F. EMPLOYEE STATEMENTS ARE FILED IN HUMAN RESOURCES; BOARD OF DIRECTOR STATEMENTS ARE FILED IN THE ADMINISTRATION OFFICE. 3. THE STATEMENT MUST BE COMPLETED UPON APPOINTMENT / HIRING TO ANY POSITION WITHIN THE ORGANIZATION. A. ST. LUKE'S HUMAN RESOURCES INCLUDES THE CONFLICT OF INTEREST POLICY AND STATEMENT IN THE NEW HIRE PACKET AND FORWARDS THE COMPLETED STATEMENT TO COMPLIANCE OFFICE FOR REVIEW. B. ST. LUKE'S HUMAN RESOURCES NOTIFIES COMPLIANCE OFFICE OF INTERNAL TRANSFERS TO ADMINISTRATIVE, DIRECTOR AND MANAGEMENT POSITIONS. COMPLIANCE OFFICE REQUESTS COMPLETION OF THE CONFLICT OF INTEREST STATEMENT. C. IF AN EMPLOYEE'S DUTIES CHANGE DURING THE YEAR, RESULTING IN A POTENTIAL CONFLICT OF INTEREST, THE EXECUTIVE DIRECTOR NOTIFIES THE ST. LUKE'S COMPLIANCE OFFICE TO OBTAIN A CONFLICT OF INTEREST STATEMENT. 4. AT ANY TIME DURING THE YEAR, WHEN AN ACTUAL, POTENTIAL OR PERCEIVED CONFLICT OF INTEREST ARISES, THE AFFECTED INDIVIDUAL IS OBLIGATED TO CONTACT HIS OR HER SUPERVISOR OR THE COMPLIANCE OFFICE AND COMPLETE THE CONFLICT OF INTEREST STATEMENT. 5. AFFECTED INDIVIDUALS ARE REQUIRED TO SUBMIT IN WRITING A LIST OF ALL BUSINESSES OR OTHER ORGANIZATIONS IF THEY OR MEMBERS OF THEIR FAMILY ARE AN OFFICER, MEMBER, OWNER, OR EMPLOYEE AND THE ORGANIZATION HAS OR MIGHT REASONABLY BE EXPECTED TO ENTER INTO A RELATIONSHIP OR A TRANSACTION WITH THE BUSINESS OR ORGANIZATION IN THE FUTURE. 6. IF RESOLUTION OF POTENTIAL CONFLICTS OF INTEREST IS NEEDED, IT IS HANDLED THROUGH THE CHAIN OF COMMAND OR AT THE BOARD OF DIRECTOR LEVEL. 7. EMPLOYEES ACCEPT NO PERSONAL GIFTS, FAVORS, OR COMPENSATION FROM PATIENTS, VENDORS, OR OTHER INDIVIDUALS OR ORGANIZATIONS SEEKING A BUSINESS RELATIONSHIP WITH ST. LUKE'S FOUNDATION. A. BUSINESS TRAVEL PAID IN PART OR COMPLETELY BY AN OUTSIDE INDIVIDUAL, AGENCY, CORPORATION OR ORGANIZATION REQUIRES PRIOR APPROVAL BY THE CEO. B. PERISHABLE OR CONSUMABLE GIFTS (CANDY, DONUTS, FLOWERS, ETC.) GIVEN TO THE ORGANIZATION ARE ALLOWED. C. CASH GIFTS ARE PROHIBITED. D. IF AN EMPLOYEE IS GIVEN A GIFT THAT CANNOT BE RETURNED, THE EMPLOYEE CONSULTS WITH THE EXECUTIVE DIRECTOR AND/OR HUMAN RESOURCES TO DETERMINE AN ACCEPTABLE COURSE OF ACTION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15A</ReturnReference>
        <Explanation>THE CHIEF EXECUTIVE OFFICER IS AN EMPLOYEE OF ST. LUKE'S, A 501(C)(3) RELATED ORGANIZATION. THE CEO'S COMPENSATION IS REVIEWED AND ESTABLISHED BY ST. LUKE'S. NO PORTION OF THE CEO'S COMPENSATION WAS CHARGED TO THE ORGANIZATION AS AN EXPENSE DURING 2011. THE CHIEF FINANCIAL OFFICER IS AN EMPLOYEE OF ST. LUKE'S, A 501(C)(3) RELATED ORGANIZATION. THE CFO'S COMPENSATION IS REVIEWED AND ESTABLISHED BY ST. LUKE'S. NO PORTION OF THE CFO'S COMPENSATION WAS CHARGED TO THE ORGANIZATION AS AN EXPENSE DURING 2011. THE EXECUTIVE DIRECTOR IS AN EMPLOYEE OF ST. LUKE'S, A 501(C)(3) RELATED ORGANIZATION. THE COMPENSATION REVIEW PROCESS DESCRIBED BELOW PERTAINS TO THE EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR IS THE TOP MANAGEMENT OFFICIAL. THERE ARE NO EMPLOYEES WHO QUALIFY AS KEY EMPLOYEES OF THE ORGANIZATION. THE COMPENSATION REVIEW PROCESS OCCURS DURING AN ANNUAL REVIEW PERFORMED BY THE ST. LUKE'S HUMAN RESOURCES DEPARTMENT AND LAST OCCURRED IN 2011. TOTAL COMPENSATION FOR THE EXECUTIVE DIRECTOR WAS ITEMIZED INCLUDING BASE SALARY, HEALTH INSURANCE, DENTAL INSURANCE, LIFE INSURANCE, DISABILITY, VACATION, AND HOLIDAY PAY. ALL AMOUNTS WERE COMBINED TO DETERMINE THE TOTAL COMPENSATION FOR THIS POSITION. THE TOTAL COMPENSATION AMOUNT OF EACH POSITION WAS THEN MEASURED AGAINST THE 2008 - 2009 WATSON WYATT DATA FOR HOSPITAL SYSTEMS IN THE NORTH CENTRAL U.S. REGIONS WITH $150 - $450 MILLION IN NET OPERATING REVENUE. THE TOTAL COMPENSATION WAS ALSO MEASURED AGAINST THE MINNESOTA HOSPITAL ASSOCIATION DATA FOR HOSPITALS WITH $200 MILLION OR MORE IN TOTAL EXPENSE BUDGET. CONTEMPORANEOUS DOCUMENTS AND RECORDKEEPING WITH RESPECT TO THE DELIBERATIONS AND DECISIONS ARE MAINTAINED BY THE ST. LUKE'S HUMAN RESOURCES DEPARTMENT. THE FOUNDATION BOARD OF DIRECTORS APPROVES THE ANNUAL COMPENSATION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>ST. LUKE'S FOUNDATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST STATEMENTS ARE REVIEWED AND UPDATED ANNUALLY BY THE BOARD OF DIRECTORS. THEY ARE NOT AVAILABLE TO THE GENERAL PUBLIC. FINANCIAL INFORMATION IS MADE AVAILABLE THROUGH ST. LUKE'S FOUNDATION ANNUAL REPORT (PUBLISHED EVERY YEAR AND AVAILABLE ON ST. LUKE'S WEBSITE AT WWW.SLHDULUTH.COM) AND THE FORM 990 IS MADE AVAILABLE TO THE PUBLIC IN ACCORDANCE WITH THE INTERNAL REVENUE SERVICE GUIDANCE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ALLOCATION OF HOURS</Identifier>
        <ReturnReference>FORM 990, PART VII, SECTION A, LINE 1</ReturnReference>
        <Explanation>JOHN STRANGE, CEO, DEVOTED APPROXIMATELY 40 HOURS PER WEEK AS FOLLOWS BETWEEN THE REPORTING ORGANIZATION AND ITS RELATED AFFILIATES: ST. LUKE'S HOSPITAL OF DULUTH: 36 HOURS LAKE VIEW MEMORIAL HOSPITAL, INC.: 2 HOURS ST. LUKE'S FOUNDATION: 2 HOURS JAMES WUELLNER, CEO, DEVOTED APPROXIMATELY 40 HOURS PER WEEK AS FOLLOWS BETWEEN THE REPORTING ORGANIZATION AND ITS RELATED AFFILIATES: ST. LUKE'S HOSPITAL OF DULUTH: 36 HOURS LAKE VIEW MEMORIAL HOSPITAL, INC.: 2 HOURS ST. LUKE'S FOUNDATION: 2 HOURS IN ADDITION TO BEING A BOARD MEMBER OF ST. LUKE'S FOUNDATION, THE FOLLOWING BOARD MEMBERS, MELINDA MACHONES, PAUL SANFORD, AND BRIAN RYKS, ALSO SERVE AS BOARD MEMBERS OF THE RELATED ORGANIZTION ST. LUKE'S HOSPITAL OF DULUTH.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>ST LUKE'S HOSPITAL OF DULUTH</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>915 EAST 1ST STREET</AddressLine1>
          <City>DULUTH</City>
          <State>MN</State>
          <ZIPCode>55805</ZIPCode>
        </AddressUS>
        <EIN>410714079</EIN>
        <PrimaryActivities>HEALTH CARE/HOSPITAL</PrimaryActivities>
        <LegalDomicileState>MN</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>LAKE VIEW MEMORIAL HOSPITAL INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>325 11TH AVENUE</AddressLine1>
          <City>TWO HARBORS</City>
          <State>MN</State>
          <ZIPCode>55616</ZIPCode>
        </AddressUS>
        <EIN>410786046</EIN>
        <PrimaryActivities>HEALTH CARE/HOSPITAL</PrimaryActivities>
        <LegalDomicileState>MN</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>ST LUKES HOSPITAL</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>LAKE VIEW MEMORIAL HOSPITAL FOUNDATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>325 11TH AVENUE</AddressLine1>
          <City>TWO HARBORS</City>
          <State>MN</State>
          <ZIPCode>55616</ZIPCode>
        </AddressUS>
        <EIN>411700972</EIN>
        <PrimaryActivities>PROVIDE SUPPORT TO LAKEVIEW MEMORIAL HOSPITAL</PrimaryActivities>
        <LegalDomicileState>MN</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>7</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>ST LUKES HOSPITAL LAKE VIEW MEMORIAL HOSPITAL</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>1</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>1</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>0</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>0</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>1</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>1</SharingOfFacilities>
      <SharingOfPaidEmployees>0</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>1</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>0</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>0</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
    </IRS990ScheduleR>
  </ReturnData>
</Return>