You are here

Charities Often Restructure to Protect Corporate Assets

Charities Often Restructure to Protect Corporate Assets

Charities Often Restructure to Protect Corporate Assets

Creation of a separate foundation to hold reserve assets provides protection and flexibility for new programs

Threats of high litigation verdicts and a crisis in obtaining insurance caused many charities to restructure their organizations to create separate “foundations” to protect their reserve assets a couple of decades ago.  Prior to that, many hospitals had created foundations in order to maximize their reimbursements for medical services.  Both the wave of huge adverse verdicts and the difficulty in obtaining insurance have waned over the years.  Hospital reimbursement has changed so foundations no longer increase hospital income.  But many charities are continuing to restructure today, both to protect their assets and to provide greater flexibility in the programs they...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering