Donation to Endowment Fund for School for the Deaf

Question: Our hospital made a cash donation to the Kansas City School for the Deaf's Endowment fund. Does this count toward community benefit?

Recommendation: We recommend not reporting this donation as community benefit. The IRS instructions specify that to be reported as community benefit, contributions must be restricted to be used for an activity that meets criteria for community benefit. The contribution to the endowment fund does not seem to meet this requirement.

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.