2011-05-23T08:06:27-05:00 2010-06-30 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2009-07-01 363297853 Sanford Health Foundation SANF 6053331000 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 Lisa Carlson 6053331000 2011-05-13 1 6123974000 2009 2016-02-24 21:20:13Z Brian Mortenson 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 140215370 0 X www.sanfordhealthfoundation.org X 1983 SD Sanford Health Foundation's purpose is to encourage and assist Sanford Health in its activities. 15 10 0 317 0 0 559062 43345806 0 2271796 19728051 272966 2830858 63346823 1833062 18221636 0 259938 1452221 0 1197541 152518 573184 2245518 20247041 585340 43099782 414577427 467712989 1461556 6192861 413115871 461520128 Sanford Health Foundation was incorporated for the purpose of encouraging and assisting Sanford Health in its activities and to encourage and assist other exempt entities associated with Sanford Health in providing health care, medical, or educational services. 0 0 2490529 2490529 The Foundation continues its proud tradition of supporting the programs, services and operations of Sanford Health as it continues its growth regionally, nationally and internationally. Specifically, grants helped provide patient care and family support ($1,667,892), equipment and renovation projects ($777,824) and other internal programs ($44,813). 183466 183466 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 are receiving the very best, and latest, in care. 15547641 15547641 Grants continually help support the Sanford Initiatives. These special project areas include: Investment in Children-to develop services and facilities and recruit physicians specifically focused on children; Sanford Research-to allow significant growth in all areas of Sanford Research and creation of the Sanford Children's Health Research Center; Healthcare Campus of the Future-to implement a new approach to healthcare campus and facility design; and the Sanford Project-the research effort to cure type 1 diabetes. Additionally, a grant was made to the Burnham research project, another collaboration effort of Sanford Health. 18221636 1 1 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 1 17 4 1 0 0 0 0 0 0 1 1 0 0 0 0 15 10 1 0 1 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X Marlin VanPeursem Director of Fina 6053285704 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 Ronald M Moquist 0.50 X 0 0 0 Lauris Molbert 0.50 X 0 0 0 Barbara Stork 0.50 X 0 0 0 David Beito 0.50 X 0 0 0 Pamela Anderson 0.50 X 0 0 0 Terry D Baloun 0.50 X 0 0 0 Jim Entenman 0.50 X 0 0 0 Jerome D Feder 0.50 X 0 0 0 Terrence Grimm MD 60.00 X 0 607209 41089 John C Jambois 0.50 X 0 0 0 Kelby K Krabbenhoft 60.00 X X 0 1123846 748719 Barry L Martin 0.50 X 0 0 0 Michael L Olson MD 60.00 X 0 561750 53780 Mark Paulson MD 60.00 X 0 225981 43832 John VanderWoude Jr MD 60.00 X 0 2134556 29404 Lisa Carlson 60.00 X 0 294054 49603 Brian Mortenson 60.00 X 297547 0 30219 Deborah Koski 60.00 X 109041 0 24272 Marlin Van Peursem 60.00 X 108771 0 20426 515359 4947396 1041344 3 0 1 0 0 628376 167239 42550191 174729 43345806 17672873 17672873 78617006 76561828 2055178 2055178 2055178 306719 628376 306719 0 Pledge Allowance Adj 525990 252696 252696 Donor CSV Adj 525990 15780 15780 Other Operating Rev 525990 4490 4490 272966 63346823 0 0 20001017 18221636 18221636 290217 216149 74068 946935 350897 596038 23718 9838 13880 123672 48258 75414 67679 25740 41939 8795 8795 178188 72569 105619 3769 3769 126379 12345 114034 5010 5010 25820 25820 31811 1602 30209 9718 5506 4212 43488 43488 4453 4453 Professional Dues 58441 475 57966 Donor Stewardship 55917 55917 Fundraising Materials 19466 19466 Miscellaneous Expense 1929 1929 20247041 18221636 827864 1197541 X 100 619922 187620 12159063 35667309 75000 660 571 614753 341795 314941 272958 398083452 431000144 3324949 583727 414577427 467712989 208759 30131 26213 602 98979 5281465 1127605 880663 1461556 6192861 X 373104441 383258497 16194804 51698148 23816626 26563483 413115871 461520128 414577427 467712989 X 0 1 1 X 0 X X X 0 0 0 Sanford USD Medical Center 460227855 501(c)3 1 18221636 1 18221636 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 23816626 2689481 57376 26563483 23464847 323063 33882 5166 23816626 1.00000 0 0 88835 88835 259132 102922 156210 266786 238873 27913 272958 Annuities payable 880663 880663 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 fund's balance will be overseen and expended by the owner. Part V, Line 4: Description of Intended Use of Endowment Funds: 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: Description of Uncertain Tax Positions Under FIN 48: 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 Fouondation did not have an income tax liability at June 30, 2010; some related organizations have established reserves. Children's Gala 844585 565492 279093 136385 2650 140058 Half Marathon 52139 27222 24917 2700 22217 4 38371 35662 2709 2709 935095 628376 306719 2700 136385 2650 164984 306719 0 1 Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 501(c)(3) 18221636 See Form 990, Page 2, Part III 1 0 Other Information: Part IV: Schedule I, 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. 0 1 1 0 0 0 1 0 0 Terrence Grimm MD 0 497424 0 108201 0 1584 0 32720 0 8369 0 648298 0 0 Kelby K Krabbenhoft 0 746924 0 0 0 376922 0 730587 0 18132 0 1872565 0 79234 Michael L Olson MD 0 535584 0 1456 0 24710 0 39748 0 14032 0 615530 0 15838 Mark Paulson MD 0 180376 0 45053 0 552 0 28836 0 14996 0 269813 0 0 John VanderWoude Jr MD 0 1038461 0 0 0 1096095 0 7350 0 22054 0 2163960 0 920379 Lisa Carlson 0 292197 0 0 0 1857 0 32720 0 16883 0 343657 0 0 Brian Mortenson 214188 0 0 0 83359 0 7035 0 23184 0 327766 0 14084 0 Part I, Line 1a Certain items listed on Line 1a are provided by related organizations. Part I, Line 3: Sanford's Trustees directly engages a nationally recognized independent compensation consulting firm to annually review the total compensation of arrangements of the officers of the organization, and to report findings and recommendations to the Trustees for deliberation and action. The most recent study was completed in 2010. Part I, Line 4a To be in compliance with the IRS regulatory environment, listed individuals compensation includes a one-time payment of deferred compensation; this compensation was earned over multiple periods, and should be treated as earned over that length of time in exchange for services provided. These amounts were already reported in previous years as compensation. Distributions were paid to the following individuals: Kelby Krabbenhoft $79,234 Brian Mortenson $14,084 Dr. Michael Olson $15,838 Part I, Line 4b / Schedule J, Part II, Column C: In addition to employer contributions to pension plans, amounts representing increases and decreases in actuarial value (actuarial value factors include age, tenure and salary) of defined contribution and defined benefit SERP Plans are included in Column C. Participants and changes in values include: Kelby Krabbenhoft $706,194 Part I, Line 4c: Several listed individuals received payment distributions from a benefit plan that falls within the definition of an "equity based" compensation plan. These amounts were deferred over multiple year periods, and were included in compensation in those periods. Distributions were paid to: Dr. John Vander Woude Jr. $920,379 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 revenues less expenses. Physicians listed that were paid on this model include: Dr. Michael Olson. Supplemental Information Part III Supplemental: Compensation reported on Schedule J includes: (B)(i) Base compensation - salaries are based on the experience and performance of each executive and bench-marked 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. It also includes the one-time payout of previously deferred compensation (which was also reported as compensation in the earned period). To be in compliance with the IRS regulatory environment, listed individuals compensation includes a one-time payment of deferred compensation; this compensation was earned over multiple periods, and should be treated as earned over that length of time in exchange for services provided. (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 benefit plans. (D) Nontaxable benefits generally includes health insurance premiums. A memo regarding executive compensation, written by the Chairman of Sanford's Trustees, is on file and available upon request. Compensation paid to trustees is for full-time professional responsibilities as physicians, administrators or employees of the organization. The total compensation paid to Kelby Krabbenhoft of $1,123,846 is comprised of Base Salary of $746,924, the one-time payment of previously deferred compensation of $79,234 (see also explanation above) and Other Taxable Earnings of $297,688. X 7 174729 Average high/low price 0 0 1 0 Method for Determining Number of Contributors: Part I, Column (b): The organization is using the number of contributors method. Form 990, Part VI, Section A, line 2 Lisa Carlson and Pamela Anderson have a business relationship. Form 990, Part VI, Section A, line 4 Sanford Health Foundation had significant changes to its organizational documents in its current year. The organization granted reserve powers to SHM MeritCare and SHM Sanford for the advance approval of the following: Amendments to the Articles of Incorporation or Bylaws; mergers with another entity that is not a subsidiary of Sanford (f/k/a Sanford Health-MeritCare) or a merger in which the corporation is the surviving entity; consolidation of the corporation with another entity or dissolution of the corporation; sale of all or substantially all of its assets; or any name changes of the corporation. In addition, Sanford Health Foundation changed its fiscal year from April 30 to June 30. Form 990, Part VI, Section A, line 6 Sanford Health, a 501(c)(3) corporation, is the sole corporate member of Sanford Health Foundation. Sanford, a 501(c)(3) corporation is the sole corporate member of Sanford Health. Sanford's members are its Trustees. As Sanford Health Foundation's sole member, the Trustees of Sanford are also the Trustees of Sanford Health Foundation and as such, approve the actions of both organizations. Form 990, Part VI, Section A, line 7a The Trustees of Sanford are also the Trustees of Sanford Health Foundation and approve the actions of both organizations. Form 990, Part VI, Section A, line 7b The Trustees of Sanford approve the actions 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, including both Sanford's CEO and CFO. An external accouting firm reviews the return prior to filing and presents return highlights and key disclosures to its Trustees at the meeting immediately following the return filing date. After the return is filed, a complete copy is made available to the current 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 Sanford's Trustees, members of the governing boards of subsidiary entities, officers, and key employees. The disclosures are summarized for review by the executive committee of its 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 such. Form 990, Part VI, Section B, line 15 Sanford's Trustees directly engages a nationally recognized independent compensation consulting firm to annually review the total compensation arrangements of the officers and operating unit executives of the organization, including the CEO, and to report the findings and recommendations to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford's Trustees. The most recent study was completed in 2010. Additionally, Sanford periodically engages an independent compensation consultant to review and issue a report regarding the reasonableness of the total compensation arrangements of all physicians employed by the organization. The most recent study of physician total compensation arrangements was completed in 2009. 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 VII, Section A: Sanford's Trustees provide services to Sanford and its subsidiaries. Hours reported for each individual reflect the time spent on work related to either the filing organization or a related organization. Sanford's Trustees has ultimate governance responsibilities for each entity within the Sanford system. In addition, a Board of Directors is established for each entity, which has specific delegated responsibilities from the Trustees related to the oversight of day to day operations of that entity. Schedule R, Part V, Line 2: Transactions between related organizations are computed using a cost method. Sanford Health 1305 W 18th Street Sioux Falls SD 57117 311527032 Supporting Organization SD 501(c)(3) Line 11 Type III Sanford Sanford ResearchUSD 1100 E 21st Street Sioux Falls SD 57105 460450378 Research SD 501(c)(3) Line 3 Sanford Health Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 Supported Organization SD 501(c)(3) Line 3 Sanford Health Sanford Clinic 1305 W 18th Street Sioux Falls SD 57117 460447693 Clinics SD 501(c)(3) Line 3 Sanford Health Sanford Health Network 1305 W 18th Street Sioux Falls SD 57117 460388596 Hospitals/Clinics SD 501(c)(3) Line 11 Type I Sanford Health Sanford Home Health 1305 W 18th Street Sioux Falls SD 57117 460282134 Home Health Services SD 501(c)(3) Line 9 Sanford Health Sanford World Clinics 1305 W 18th Street Sioux Falls SD 57117 262707628 Healthcare SD 501(c)(3) Line 3 Sanford Health Sanford 801 Broadway Drive Fargo ND 58122 271218956 Supporting Organization ND 501(c)(3) Line 11 Type II N/A SHM-Sanford 1305 W 18th Street Sioux Falls SD 57105 271213769 Supporting Organization SD 501(c)(3) Line 11 Type II N/A SHM-MeritCare 801 Broadway Drive Fargo ND 58122 271213717 Supporting Organization ND 501(c)(3) Line 11 Type II N/A Sanford North PO Box 2010 Fargo ND 58122 450385890 Supporting Organization ND 501(c)(3) Line 11 Type I Sanford Sanford Medical Center Fargo PO Box 2010 Fargo ND 58122 450226909 Hospital ND 501(c)(3) Line 3 Sanford North Sanford Clinic North PO Box 2010 Fargo ND 58122 911770748 Clinics ND 501(c)(3) Line 9 Sanford North Sanford Health Network North PO Box 2010 Fargo ND 58122 450409348 Hospitals/Clinics ND 501(c)(3) Line 11 Type II Sanford North Sanford Health Foundation North PO Box 2010 Fargo ND 58122 450398104 Supporting Organization ND 501(c)(3) Line 7 Sanford North Sanford Medical Center Wheaton 401 12th Street N Wheaton MN 56296 272042143 Hospital MN 501(c)(3) Line 3 Sanford North Sanford Medical Center Thief River Falls 120 Labree Ave S Thief River Falls ND 56701 410709579 Hospital MN 501(c)(3) Line 3 Sanford North Sanford Medical Center Mayville 42 6th Avenue SE Mayville ND 58257 450228899 Hospital ND 501(c)(3) Line 3 Sanford North MeritCare Minnesota 1720 South Highway 59 Thief River Falls MN 56701 261530302 Promotion of Health MN 501(c)(3) Line 3 Sanford North Agassiz Assurance Company 100 Bankd Street Suite 610 Burlington VT 05401 743121855 Insurance VT 501(c)(3) Line 11 Type II Sanford North MeritCare Health Enterprises PO Box 2010 Fargo ND 58122 450359785 Prescription Drugs ND 501(c)(4) Sanford North FM Ambulance Service 2215 18th Street S Fargo ND 58103 450344371 Emergency Medical Transport Services ND 501(c)(4) Sanford North National Student Housing-South Dakota LLC 100 S Phillips Ave Sioux Falls SD 57104 202129839 Investment SD Sanford Health Related 0 0 RAC Rentals LLC 100 S Phillips Ave Sioux Falls SD 57104 261961077 Investment SD Sanford Health Related 0 0 Heart Partners at Sanford 1305 W 18th Street Sioux Falls SD 57117 460449572 Healthcare SD Sanford Health C Sanford Home Medical Equipment 2710 W 12th Street Sioux Falls SD 57105 460388597 Healthcare Equipment SD Sanford Health C Sanford Health Plan 1305 W 18th Street Sioux Falls SD 57117 911842494 Insurance SD Sanford Health C Sanford Health Plan of MN 1305 W 18th Street Sioux Falls SD 57117 460445852 Insurance MN Sanford Health C Healthcare Environmental Services Inc 1420 40th Street NW Fargo ND 58102 450336598 Laundry & Incineration Services ND Sanford North C 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sanford USD Medical Center B 18221636 Sanford USD Medical Center C 167239