Question: We are paying a membership fee to serve as part of the national Healthcare Anchor Network, a national collaboration of 65 leading healthcare systems building more inclusive and sustainable local economies, that supports the development of community strategies for underserved communities. Can we count this membership fee as part of Community Benefit/Community Building?
Recommendation: We commend the activities related to the 3 pillars of Healthcare Anchor Network (Workforce, Purchasing, and Place-based investing) and acknowledge the positive impact they have on community health. Anchor strategies primarily are activities that are "Above and Beyond" reportable Schedule H community benefit and activities of how the organization does business (hiring and purchasing practices). Therefore, we do not recommend reporting Healthcare Anchor Network (HAN) membership fees as community benefit.
However, some activities may be reported as community building if they meet the qualifications described in the IRS Schedule H instructions.
We do recommend reporting HAN membership fees as community building, category F7. Community-building: Community health improvement advocacy, if your organization is actively engaged in the network and your organization has active programs that meet the definition of community building.
Friendly reminder: Form 990 Schedule H is filed on an EIN-by-EIN basis. Expenses reported in Schedule H, must be included in the organization's income statement and reported in the main Form 990, Part IX, line 25. Therefore, if the organization that paid the membership fee is not part of the reporting EIN, it may not be reported.
August 2025