Cash Contribution outside Community

Question: Does a community benefit activity have to be restricted to a community served by the hospital? For example, if we make a cash contribution to the American Cancer Society and restrict the use of funds to be used for their transportation program but are unable to restrict it to a local chapter’s program, can it be reported as a community benefit expense?

Recommendation: We recommend it be reported as community benefit as long as there is a written restriction for its purpose.

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.