Community Benefit

Lifeline Services

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.

Question: We provide Lifeline services to indigent persons using funds from the United Way, auxiliary funds and endowment funds. We serve approximately 200 people at a cost of $450 per person. How should this be reported?

Recommendation: Expenses for Lifeline can be counted under Category A3 — Health Care Support Service.  Per IRS instructions, all funds received to provide this service must offset the expenses.  For example, if the program expenses cost $100,000 and the organization receives United Way funds restricted to this program, then the amount reported as community benefit is $100,000 minus the amount of the United Way funds.

(Updated November 2015)