2011-11-15T09:08:13-06:00 2010-12-31 Flieller Kruger Skelton & Plyler PLLC 221 West Sixth Street Suite 1200 Austin TX 78701 990 2010-01-01 742206098 St David's Community Health Foundation Holdings STDA 5128796600 811 Barton Springs Rd No 600 Austin TX 78704 Jim Ries 5128796603 2011-11-15 1 Greg D Skelton 5124796000 2010 2016-03-07 17:11:31Z Earl Maxwell 811 Barton Springs Rd Austin TX 78704 131809 0 X www.stdavidsfoundation.org X 1984 TX EXISTS TO HOLD FUNDS THAT PROVIDE GRANTS AND PROGRAMS THAT IMPACT COMMUNITY HEALTH. 3 3 0 0 0 0 269956 126820 0 0 8131 4989 0 0 278087 131809 91548 21896 0 0 0 0 0 0 0 7433 17266 98981 39162 179106 92647 1494938 1767050 54259 47976 1440679 1719074 Exists to hold funds that provide grants and programs that impact community health. 0 0 21896 21896 267418 The Foundation provided grants and assistance to the needy in Central Texas. 21896 1 1 0 0 0 1 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 3 3 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Jim Ries 5128796603 811 Barton Springs Rd Suite 600 Austin TX 78704 C W Hetherly 1.00 X 0 0 0 H David Hughes 1.00 X 0 0 0 Scott Thomas 1.00 X 0 0 0 Earl Maxwell 1.00 X 0 258916 19378 James Ries 1.00 X 0 183810 13079 Bobbie Barker 1.00 X 0 205249 18790 0 647975 51247 0 0 1 0 0 50000 76820 126820 4989 4989 131809 0 0 4989 19000 19000 2896 2896 117 117 9693 9693 139 139 7317 7317 39162 21896 17266 0 200 200 97752 129388 105583 114029 1291403 1523433 1494938 1767050 54259 47976 54259 47976 X 16380 42019 1124214 1376970 300085 300085 1440679 1719074 1494938 1767050 X 92647 185748 X X 0 1 0 X 0 X 4823682 713267 83169 269956 126820 6016894 4823682 713267 83169 269956 126820 6016894 4856124 1160770 131396 118717 11191 8131 4989 274424 6291318 81915 0.18450 0.19500 X Facts & Circumstances Test: INTRODUCTION. The reporting organization receives significant support from St. David's Foundation, an organization classified as an Internal Revenue Code ("Code") Section 170(b)(i)(A)(iii) hospital (the "Granting Organization"). While the Granting Organization almost certainly would meet the requirements of the public support test under Code Section 509(a)(2), the Granting Organization might not meet the requirements of the public support test under Code Section 170(b)(i)(A)(vi). The regulations under the Code are unclear regarding whether or not an organization that could meet the public support test of Code Section 509(a)(2) would qualify as "publicly supported" for purposes of classifying its grants as public support under Code Section 170(b)(i)(A)(vi). Because of this uncertainty, out of an abundance of caution, and without conceding the issue should the Internal Revenue Service challenge the public charity status of the reporting organization in the future, the reporting organization has excluded grants from the Granting Organization from public support for purposes of the reporting organization's Section 170(b)(i)(A)(vi) public support calculation in this Form 990. Although this conservative computational position causes the reporting organization to not meet the 33 1/3 percent-of-support test under regulations Section 170A-9(e), the reporting organization nonetheless remains a "publicly supported" organization under the "facts and circumstances" analysis provided for in regulations Section 1.170A-9(e). Under that analysis, the reporting organization is "publicly supported" because it normally receives a substantial part of its support from governmental units, from direct or indirect contributions from the general public, or from a combination of these sources, and meets the other requirements of the regulations to be considered a publicly supported organization. TEN PERCENT-OF-SUPPORT LIMITATION. As contemplated by regulations Section 1.170A-9(e), the percentage of support "normally" (as defined in regulations Section 1.170A-9(e)) received by the reporting organization from governmental units, from contributions made directly or indirectly by the general public, or from a combination of these sources, is substantial within the meaning of the regulations (i.e., such support equals at least 10 percent of the total support normally received by the reporting organization). ATTRACTION OF PUBLIC SUPPORT. Further, the reporting organization is so organized and operated that it attracts substantial public support. As contemplated by the regulations, the reporting organization carries on activities designed to attract (and which do attract) support from governmental units or other organizations described in Code Section 170 (b)(1)(A)(i) through (vi). As noted above, most of the reporting organization's support comes from a section 170 (b)(1)(A)(iii) hospital organization that would also qualify as a publicly supported organization under the objective tests set out in Code Section 509(a)(2). PERCENTAGE OF FINANCIAL SUPPORT. Under regulations Section 1.170A-9(e), the percentage of support received by an organization from public or governmental sources is taken into consideration in determining whether an organization is "publicly supported." The higher the percentage of support above the 10 percent minimum public support requirement, the lesser will be the burden of establishing the publicly supported nature of the organization. In this case, the reporting organization's public support percentage substantially exceeds the minimum 10 percent requirement. This lessens the burden of the reporting organization in establishing its publicly supported status. Further, investment income generated by the reporting organization arises primarily from investments contributed by the general public and the Granting Organization rather than a few individuals or members of their families. As set out in the regulations, this also serves to decrease the burden on the reporting organization in establishing its publicly supported nature. SOURCES OF SUPPORT. As noted above, the reporting organization receives most of its support from direct and indirect public sources. Under regulations Section 1.170A-9(e), this fact supports the publicly supported character of the organization because members of a single group or family do not provide most of its support. Further, under the regulations, consideration must be given to the type of organization involved, the length of time it has been in existence, and whether it limits its activities to a particular community or region or to a special field which can be expected to appeal to a limited number of persons. In the instant case, the reporting organization is an organization of long standing publicly supported status. It sphere of activity is Central Texas, a highly populated and growing region. The reporting organization's area of interest is healthcare, which is of broad interest to all citizens. The activities of the reporting organization and its related organizations appeal to and are relevant to all residents of Central Texas. These factors all support the conclusion that the reporting organization is publicly supported. REPRESENTATIVE GOVERNING BODY. The fact that an organization has a governing body which represents the broad interests of the public, rather than the personal or private interests of a limited number of donors (or persons standing in a relationship to such donors which is described in Code Section 4946(a)(1)(C) through (G) ) must be considered in determining whether an organization is publicly supported. An organization will be treated as meeting this requirement if it has a governing body which is comprised of public officials acting in their capacities as such; of individuals selected by public officials acting in their capacities as such; of persons having special knowledge or expertise in the particular field or discipline in which the organization is operating; of community leaders, such as elected or appointed officials, clergymen, educators, civic leaders, or other such persons representing a broad cross-section of the views and interests of the community. The reporting organization has a small board, but no member of the board is a past or present significant donor to the organization. More importantly, the board of the reporting organization is selected by (and subject to removal, with or without cause, at any time, by) the board of the Granting Organization. The board of the Granting Organization is large and comprised of community leaders representing a broad cross section of the population served by the reporting organization. This board also includes persons with special knowledge and expertise in healthcare issues in Central Texas. This community board effectively controls the reporting organization by controlling the composition of its board. This community board also has direct veto power over certain actions of the reporting organization's board as detailed in this Form 990. AVAILABILITY OF PUBLIC FACILITIES OR SERVICES; PUBLIC PARTICIPATION IN PROGRAMS OR POLICIES. Under the regulations, the fact that an organization is of the type which generally provides facilities or services directly for the benefit of the general public on a continuing basis must be considered evidence that the organization is "publicly supported." In this instance, the services provided to the community are grants that positively impact public healthcare in the Central Texas area. As such, this broad purpose reflects the publicly supported nature of the reporting organization. OTHER FACTORS. Under the regulations, the participation in, or sponsorship of, the programs of an organization by members of the public having special knowledge or expertise, public officials, or civic or community leaders indicates the presence of public support. As noted above, the board of the reporting organization is comprised of individuals chosen by a community board that includes persons who have special knowledge and expertise in the healthcare field as well as civic and community leaders of the community supported by the work of the reporting organization. This participation supports classification of the reporting organization as a publicly supported organization. Further, under the regulations, maintenance of a definitive program by an organization to accomplish its charitable work in the community is considered a factor indicating public support. In this case, the reporting organization has a long and significant history of participation in and support of healthcare in Central Texas. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 66242 370505 1 1 300085 300085 300085 300085 300085 300085 1.00000 0 0 0 Due from St. David's Foundation 1523433 1523433 Annuity Payable 47976 47976 Description of Intended Use of Endowment Funds: Part V, Line 4: The endowment funds are held to provide income for scholarships. Part X, Line 2: The Foundation is a public, nonprofit 501(c)(3) organization exempt from federal income taxes under Section 510(c)(3) of the Internal Revenue Code, except to the extent it has unrelated business activities. As such, no provision for federal income taxes has been made in the financial statements. The Foundation's policy is to record interest and penalty expense related to income taxes as interest and other expense, respectively. At December 31, 2010 and 2009, no interest or penalties have been or are required to be accrued. The Foundation, generally, is no longer subject to income tax examination by federal authorities for years prior to December 31, 2007. 1 St David's Foundation 811 Barton Springs Rd Ste 600 Austin TX 78704 741356589 501(c)(3) 8382 Purchase of memorial fountain for hospital Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: In accordance with endowment specifications, grants are provided to large, well-reputed public charities that serve the community in Central Texas. X X X X X 0 0 0 0 0 0 0 0 0 Earl Maxwell 0 258916 0 0 0 0 0 0 0 19378 0 278294 0 0 James Ries 0 183810 0 0 0 0 0 0 0 13079 0 196889 0 0 Bobbie Barker 0 205249 0 0 0 0 0 0 0 18790 0 224039 0 0 Form 990, Part VI, Section A, line 7a Each year, the Board of Trustees of St. David's Foundation (the "Foundation Board") elects voting members of the Board of Trustees of the reporting organization. Voting members include the Chairman and Vice Chairman and one other member of the Foundation Board. The Foundation Board has the sole discretion to remove any Trustees from or to fill any vacancies on the reporting organization's Board. Form 990, Part VI, Section A, line 7b The authority of Board of Directors of the reporting organization is limited with respect to the following actions, each of which must be approved by the Board of Directors of St. David's Foundation: 1) amendment or restatement of the organization's articles of incorporation or bylaws; 2) merger, consolidation, or dissolution of the organization or establishment of any subsidiary of the organization; 3) sale, conveyance, lease, exchange, pledge or mortgage of all or substantially all of the organization's assets; 4) sale, conveyance, or mortgage of any real property of the organization; 5) acquisition or purchase of any unbudgeted real or personal property in excess of $100,000; 6) lease of any real or personal property for more than one year involving an unbudgeted obligation or expense exceeding $100,000; 7) execution and delivery of any contract which requires an unbudgeted expenditure, obligation or pledge of more than $100,000; 8) adoption of the annual budget of the organization; 9) establishment of or amendment to articles of incorporation or bylaws of any legal entity in which the organization is a partner, participant, joint venturer, controlling shareholder, or sole member, and subsidiary thereof; 10) guarantee of any debt of the organization; 11) selection of the independent accountant for the organization's annual audit. Form 990, Part VI, Section B, line 11 Each board member receives a copy of the final Form 990. Form 990, Part VI, Section B, line 12c The reporting organization annually verifies compliance with the conflicts of interest policy. The individuals covered by this policy include the officers and directors. The persons covered by this policy are required to annually disclose or update on a form provided by the organization their interests that could give rise to conflicts of interest. For each interest disclosed, determination will be made whether to: (a) take no action; (b) assure full disclosure; (c) ask the person to recuse from participation in related discussions or decisions within the organization; or (d) ask the person to resign from his or her position in the Organization or, if the person refuses to resign, become subject to possible removal in accordance with the Organization's removal procedures. Form 990, Part VI, Section B, line 15 To establish the compensation of the organization's top management official, an outside consultant conducts an intermediate sanction review. Without participation of the official under consideration, the Board reviews and approves the consultant's report. As no person described in this section received compensation from the organization during 2010, no such procedure was undertaken by the board during 2010. Form 990, Part VI, Section C, line 19 The Foundation's governing documents, conflicts of interest policy and financial statements are available upon request. Please contact Jim Ries at 512-879-6603. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 185,748. Form 990, Part XII, Line 2b: The reporting organization's financial statements were audited by an independent accountant as part of consolidated financial statements. The consolidated financial statements included St. David's Foundation, St. David's Community Health Foundation Holdings, St. David's Foundation Community Fund, St. David's Community Health Foundation Initiatives, St. David's Foundation Impact Fund, LP, and St. David's Foundation Impact Fund GP, LLC. St David's Foundation 811 Barton Springs Rd Suite 600 Austin TX 78704 741356589 Funds grants & programs that impact community health in Central Texas TX 501(c)(3) Sec 170 (b)(1)(A)iii None 0 St David's Foundation Community Fund 811 Barton Springs Rd Suite 600 Austin TX 78704 742898888 Provides Scholarships to Needy Students in Central Texas TX 501(c)(3) Sec 170 (b)(1)(A)(vi St David's Foundation 0 St David's Community Health Foundation Initiatives 811 Barton Springs Rd Suite 600 Austin TX 78704 270112979 Supports St. David's Foundation Community Fund TX 501(c)(3) Sec 509(a)(3), I St David's Foundation Community Fund 1 St David's Healthcare Partnership LP LLP 98 San Jacinto Ste 1800 Austin TX 78701 742781812 Owns & operates 5 acute care hospitals in Central TX TX N/A Bailey Square Ambulatory Surgical Center Ltd 98 San Jacinto Ste 1800 Austin TX 78701 752467365 Ambulatory surgery center TX N/A South Austin Surgery Center Ltd 98 San Jacinto Ste 1800 Austin TX 78701 621775267 Ambulatory surgery center TX N/A Leadership Healthcare Holdings II LP LLP 98 San Jacinto Ste 1800 Austin TX 78701 341996283 Owns an interest in a radiology center TX N/A Leadership Healthcare Holdings LP LLP 98 San Jacinto Ste 1800 Austin TX 78701 203151012 Owns majority interests in ambulatory surgery centers TX N/A Oakwood Surgery Center Ltd 98 San Jacinto Ste 1800 Austin TX 78701 621641024 Ambulatory surgery center TX N/A North Austin Surgery Center LP 98 San Jacinto Ste 1800 Austin TX 78701 200648730 Ambulatory surgery center TX N/A St David's Foundation Impact Fund LP 811 Barton Springs Rd Ste 600 Austin TX 78704 341996279 Owns indirect interest in a radiology center; makes research grants TX N/A C St David's Foundation Impact Fund GP LLC 811 Barton Springs Rd Ste 600 Austin TX 78704 341996272 Owns indirect interest in a radiology center; makes research grants TX N/A C 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0