Community Building Activities

DISCUSSION:
Some items may potentially meet the definition of "community benefit activities" (Part I, line 7) and "community building activities" (Part II). Because of the way Schedule H is currently configured it is suggested that, when possible, expenses should be reported in Part 1, line 7 instead of community building. If you report the costs for an activity in Part I, line 7 you do not report it as cost for a community building activity

Each of the community building categories reportable on the Schedule include a number of examples of the types of activities that could be reported as community benefit activities. These examples are illustrative only and do not preclude reporting other types of activities that could fit within that category.

Grants
When reporting grants, here are some useful tips:

  • If the grant is made by the filing organization to another organization to accomplish a community building activity, it may be reported.
  • If the grant is made to a joint venture in which the filing organization has an ownership interest, do not include the filing organization's proportionate share of the amount spent on the community building activity when reporting the grant.
  • Do not include any contribution made by the filing organization if that contribution was funded in whole or in part by a restricted grant from a related organization.

Calculating Total Expense Column (f)
To calculate column (f), the net community building expense column (e) should be divided by the sum of the amount on Form 990, Part IX, line 25, column (A) and the proportionate share of the total expense of all joint ventures for which the expenses have been reported in Part I of the Schedule H (to the extent that these expenses are not already included in Form 990, Part IX, line 25, column (A). The total expense number used for the denominator should not include any bad debt expense.


Numerator:
   - Net community benefit expense column (e)
Denominator:
   - Amount on Form 990, Part IX, line 25, column (A)
   - PLUS Proportionate share of total expense of joint ventures reported in Part I of Schedule H
   - MINUS Bad debt expense included in Form 990, Part IX, line 25, column (A)
   - MINUS Proportionate share of bad debt expense of joint ventures reported in Part I of Schedule H


NARRATIVE REQUIRED: Yes, Part VI, line 5, to describe how the community building activities reported in Part II promote the health of the community the organization serves.

SAMPLE NARRATIVES: This narrative may be approached in one of two ways. The filing organizations could provide a concise narrative summarizing all of the community building activities in a single paragraph, or a description of specific projects could be provided. Both approaches have been used by filing organizations.

Summary of Community Building Activities:

Our hospital is involved in numerous community building activities which promote the health of the communities it serves. Numerous community concerns are addressed, including health improvement, education, poverty, workforce development and access to care. We also encourage our employees to serve on community collaboration boards, health advocacy programs, and physical improvement projects to promote the health of the communities we serve. And, we work with neighborhood programs, including schools, work sites and safety net providers to promote health and wellness and prevent disease. These activities are not included elsewhere on Schedule H.

In order to promote the health of the community we serve, our hospital participates in several community building activities which are not a part of Part I Charity Care and Other Community Benefits, and are not included elsewhere on Schedule H. These activities include collaboration with a neighborhood association and a local college to promote construction and rehabilitation of housing for low income residents to reduce and deter crime, revitalize the appearance of the neighborhood and activate linkages for physical, mental and social services.


Description of Specific Projects:

In order to promote the health of the community we serve, our hospital participates in extensive community building activities which are not a part of Part I Charity Care and Other Community Benefits, and are not included elsewhere on Schedule H. These activities include:
  1. Physical improvements and housing: development and maintenance of parks and playgrounds to promote physical recreation.
  2. Economic development: creating new employment opportunities in an area with traditionally high jobless rates.
  3. Community support: operation of a reduced cost childcare center and public health emergency activities.
  4. Environmental improvements: coordination of an effort to reduce water pollution in water sources near our campus.
  5. Leadership development and training for community members: providing medical interpretation skills training for area residents.
  6. Coalition building: participation in community coalitions aimed at addressing health and safety issues.
  7. Workforces development: collaboration with educational institutions to train and recruit health professionals needed in our traditionally underserved community.
  8. Other: Contributions to area missions of expired equipment and supplies.

INSTRUCTIONS
To access the instructions for Schedule H click here.

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