2018-05-04T16:33:13-05:00 2017-06-30 861065772 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2016-07-01 363297853 Sanford Health Foundation SANF 6053285700 P O Box 5039 Rte 5218 Sioux Falls SD 571175039 JoAnn Kunkel Chief Financial Officer 6053331000 2018-05-01 1 Anne Fulton P00941863 6123974000 2016 2022-09-23 18:48:47Z X Kelby Krabbenhoft 2301 East 60th St Sioux Falls SD 57104 241186819 0 X www.sanfordhealthfoundation.org X 1983 SD Dedicated to raising funds in support of Sanford Health's mission to improve the human condition through the work of health and healing. 15 7 0 700 0 0 23549846 25619461 0 0 31167710 32773434 872720 903612 55590276 59296507 33760628 41623300 0 0 3122663 2820025 0 0 1533739 1782625 1648644 38665916 46091969 16924360 13204538 767525247 772722732 64776101 52490860 702749146 720231872 X Sanford Health Foundation exists to encourage philanthropy in support of Sanford Health and other exempt entities associated with Sanford Health in providing health care, medical and educational services as well as supporting research activities and initiatives. 0 0 8727202 8727202 The Foundation continues its proud tradition of supporting the local healthcare-related programs, services, and operations of Sanford Health while also seeking regional, national and international support for research and initiatives. Specifically, grants helped provide patient care and family support ($2,613,725), equipment and facility improvement projects ($6,036,297) and other internal programs ($77,180). 395351 395351 Additional grants helped support healthcare education and research programs. Sanford Health is dedicated to providing continuing training and education for its employees, ensuring that patients have the benefit of the most current protocols in care delivery. 32500747 32500747 Grants help support the Sanford InitiativesIn February 2007, the Sanford Initiatives were introduced as a unique and defining element of Sanford Health. These activities have been designed to enhance the health care capabilities of the organization, to establish a health research center recognized for translational discovery and cures, and to help build a world-class reputation. Over the early course of implementation, these initiatives have been expanded to include a number of new projects and programs. By integrating strategic partnerships, and working quickly to engage fortuitous opportunity, the rapid meeting of milestones is exemplary of Sanford's commitment to care and discovery.Investment in Children The Sanford Children's Clinics - Meeting the basic health care needs of children while providing a crown jewel for various communities, the Sanford Children's Clinics serve populations around the world. Sanford Health is working to identify twenty communities where primary care pediatric services remain unavailable to young families.Having opened doors in Duncan, Oklahoma and Oceanside, California, sites are currently under development in Klamath Falls, Oregon. Each of these has been supported by local matching philanthropy to off-set capital expenditures incurred by construction of the Castle of Care and pediatric recruitment.Childhood Nutrition and Fitness Initiatives - Sanford Health has created fit, a health activation program developed to empower children and parents to make healthy lifestyle choices that help prevent childhood obesity. fit is comprised of a system of resources and programs including school programs, daycare training, mobile apps, and was developed using a combination of the latest scientific and behavioral research designed to educate, motivate, and inspire children of all ages to live a balanced, healthy lifestyle.Sanford Children's International Board - This board has been developed as a group of ambassadors who employ their various circles of influence toward the growth of opportunities for Sanford Children's. Including leaders of industry, media personalities, former legislative leaders and a 10-time medal winning Olympic athlete, the Sanford Children's International Board will help identify and steer initiatives that support Total Children's Health.The Sanford Project The Sanford Project was identified as the single-minded focus of research resources toward a cure for a leading health concern. Beginning in April, 2008, Sanford Health is seeking a cure for type 1 diabetes. By recruiting a team of four international researchers, and adding five full-time staff since, the Sanford Project team is focused on the natural regeneration of insulin-producing beta cells in the diabetic pancreas and the body's autoimmune response in patients with diabetes. The Project team launched its first clinical trial and began enrolling patients in August, 2010.Understanding that this commitment will require collaboration, Sanford held the first Results Symposium: Accelerating Clinical Research in Type 1 Diabetes in June 2009. This drew experts of the industry for a dialogue on advances and open-eyed opportunity.Sanford Research Uniquely working to create recognized leadership in health research from the foundation of health care delivery, Sanford Health has demonstrated a significant commitment to the recruitment of research scientists and staff. By seeking to have $100 million in annual research expenditures and more than 600 full-time staff by 2017, Sanford Research/USD will average 30-50 new staff each year. In 2010, the organization conducted $27 million of activity and added 33 new staff, now totaling more than 150.The Sanford Children's Health Research Center continued to grow at sites in Sioux Falls, South Dakota and La Jolla, California. The center will next include a Center for Rare Diseases.Again seeking partnerships toward discovery and cures, Sanford held the first annual Sanford Health-USD Biomedical Research Symposium sharing new concepts and strategies with collaborators at the University of South Dakota. Similar enterprise-status relationships will receive great impetus in the future, as they have with organizations like Pfizer, Novo Nordisk and Medtronic among many others. In fact, Sanford has begun commercialization and business development activities to engage employed physicians and scientists toward discovery and entrepreneurship.Sanford Health Care Campus of the FutureIn continuing to design the greatest facilities patients, physicians and scientists could find anywhere, Sanford Health opened its new research and administrative facility, the Sanford Center, in June, 2010. This 300,000-square-foot facility has provided five years of growth capacity for the research initiatives outlined above.Sanford continues to build facilities that utilize the greatest-available efficiency and technology facets. This commitment is exemplified in the rising Sanford Heart Hospital on the main campus in Sioux Falls and the new Sanford Hospital in Aberdeen, South Dakota.Sanford School of MedicineEmphasizing the organization's commitment to future health care professionals, Sanford has continued to support the growth of the Sanford School of Medicine at the University of South Dakota and has begun recruiting the first cohort for the new Pediatric Residency program that will rotate at the Sanford Children's Hospital Castle of Care.Sanford ImageneticsBecause of one man's continued generosity, Sanford Health is launching a revolutionary program to improve health and prevent disease with personalized plans of care. Denny Sanford is the preeminent health care philanthropist in the United States and is helping us change the face of medicine. Sanford Imagenetics is a comprehensive new program that fully integrates genetics with internal medicine, creating a first-of its-kind model for exceptionally high-quality and innovative primary care for adults.Edith Sanford Breast CenterEdith Sanford Breast Center will pioneer the future of breast cancer research and care. By piecing together the entire genetic puzzle of each woman, we are discovering how to revolutionize treatment and eradicate breast cancer. We are mobilizing participants -- mothers, wives, sisters and daughters -- to donate their genetic information as we build an extensive bio bank that will underpin our groundbreaking research. As we decode this deadly disease, we will know more specifically what treatments will work for each patient, how to prevent disease on an individual basis, and ultimately, how to find a cure. 41623300 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 0 0 1 7 0 1 0 0 0 0 0 0 1 1 0 0 0 0 X 15 7 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MN OR X JoAnn Kunkel CFO 6053331000 2301 East 60th Street Sioux Falls SD 57104 X Barb Everist Trustee 0.10 5.40 X 0 0 0 Andy North start Jan 17 Trustee 0.10 7.40 X 0 120000 0 Brent Teiken Vice Chair 0.10 5.40 X X 0 0 0 David Beito Past Chair 0.10 5.40 X X 0 0 0 Don Jacobs Treasurer 0.10 5.40 X X 0 0 0 Don Morton Trustee 0.10 5.40 X 0 0 0 James Cain Secretary 0.10 5.40 X X 0 0 0 Lauris Molbert thru Dec 16 Trustee 0.10 5.40 X 0 0 0 Maria Bell MD Trustee/Sanford Physician 0.10 59.90 X 0 772862 38506 Mark Lundeen MD Trustee/Sanford Physician 0.10 59.90 X 0 815419 27448 Mark Paulson MD Chair/Sanford Physician 0.10 59.90 X X 0 244344 33153 Melissa Hinton Trustee 0.10 5.40 X 0 0 0 Michael LeBeau MD Trustee/Sanford Physician 0.10 59.90 X 0 1404463 34070 Patrick Durick Trustee 0.10 5.40 X 0 0 0 Thomas Hruby Trustee 0.10 5.40 X 0 0 0 Kelby K Krabbenhoft Sanford President & CEO 0.10 59.90 X X 0 2185396 21578 Kelby K Krabbenhoft Deferred Comp Sanford President & CEO 0.10 59.90 X X 0 0 825962 JoAnn L Kunkel Chief Financial Officer 0.10 59.90 X 0 889839 36676 Micah Aberson Exec VP Sanford Health Foundation 20.00 40.00 X 0 459180 37804 Deborah Koski Sr. Exec Dir Sanford Health Foundation 20.00 40.00 X 233702 0 31042 Christine McDonald-Dockter Thru Jan Chief Development Officer 0.00 0.00 X 0 160493 185 233702 7051996 1086424 1 1 1 0 Bockorny Group Inc 1305 I Street NW Suite 800 Washington DC 20005 Sanford Ambassador (relationship mngr) 120000 1 365570 5000 25248891 40173 25619461 34420838 34420838 180087977 181735381 -1647404 -1647404 -1647404 132215 365570 154931 -22716 -22716 Shared Corporate Servi 541900 915774 915774 Donor CSV Adj 525990 7457 7457 Non-operating interest 525990 3097 3097 926328 59296507 915774 0 32761272 41623300 41623300 226223 226223 2069500 1528756 540744 100436 77493 22943 275434 211338 64096 148432 109552 38880 9995 9995 547982 65623 482359 28894 28894 81953 43433 38520 340535 340535 204988 204732 256 89175 18190 70985 21311 14164 7147 55783 55413 370 10900 10900 Dues & Memberships 131153 2816 128337 Donor Stewardship 81079 447 80632 Fundraising Materials 18924 18924 Uncollectible Pledges -5206 -5206 31178 15320 15858 46091969 41623300 2934930 1533739 1690 501 2452249 525926 8172637 7114631 51911 56455 546758 302717 299824 244041 755329183 758109750 1217753 6671428 767525247 772722732 67443 1076140 58000 1513045 1682003 63195613 49674717 64776101 52490860 X 548259279 564891065 118212018 118368834 36277849 36971973 702749146 720231872 767525247 772722732 X 13204538 -4445084 8723272 X 0 1 X 1 0 X X 1 Sanford USD Medical Center 460227855 3 1 41623300 0 1 41623300 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 36277849 694124 36971973 34946341 1331508 36277849 33762349 1170837 13155 34946341 32738447 952641 71261 33762349 30885249 1773556 79642 32738447 1.00000 0 0 105632 59365 46267 441126 243352 197774 244041 Annuities payable 156366 Refundable advance 49518351 49674717 X Part IV, Line 2b: The organization manages custodial accounts owned by related organizations of Sanford Health with the funds balance co-mingled with other investment assets of the organization. The use of the funds balance will be overseen and expended by the owner. Part V, Line 4: The organization's use of the endowment funds is to meet the donors intent in providing health care, medical, or educational services to Sanford Health. Part X, Line 2: Certain controlled organizations are subject to income taxes. Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting basis of assets and liabilities based on enacted tax rates and laws. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year. The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. Sanford Health Foundation did not have an income tax liability at June 30, 2017; however, some related organizations have established reserves. X X X 1 Jana K Oslund Associates LLC 15888 Dry Meadow Lane Apple Valley MN 55124 Consultant retained to identify and solicit gifts for Sanfor 0 0 82308 -82308 82308 -82308 MN OR Great American Bike Race 26160 25635 525 1115 176 9544 Sanford Classic 471625 339935 131690 400 15587 34819 39005 54284 497785 365570 132215 400 15587 35934 39181 63828 154930 -22715 1 Sanford USD Medical Center P O Box 5039 Rte 5218 Sioux Falls SD 571175039 460227855 501(c)(3) 41623300 See Form 990, Page 2, Part III 1 0 Part I, Line 2: Grants are disbursed by supporting organization only after the expenditure has been made and properly authorized by the supported organization along with related documentation indicating the fulfillment of donor wishes. 1 1 0 0 0 0 1 1 0 Maria Bell MD Trustee/Sanford Physician 0 712251 0 0 0 60611 0 13250 0 25256 0 811368 0 0 Mark Lundeen MD Trustee/Sanford Physician 0 813747 0 0 0 1672 0 13250 0 14198 0 842867 0 0 Mark Paulson MD Chair/Sanford Physician 0 249769 0 0 0 -5425 0 12488 0 20665 0 277497 0 0 Michael LeBeau MD Trustee/Sanford Physician 0 1410371 0 0 0 -5908 0 13250 0 20820 0 1438533 0 0 Kelby K Krabbenhoft Sanford President & CEO 0 1481306 0 629600 0 74490 0 0 0 21578 0 2206974 0 0 Kelby K Krabbenhoft Deferred Comp Sanford President & CEO 0 0 0 0 0 0 0 825962 0 0 0 825962 0 0 JoAnn L Kunkel Chief Financial Officer 0 620190 0 180000 0 89649 0 13250 0 23426 0 926515 0 0 Micah Aberson Exec VP Sanford Health Foundation 0 330387 0 83550 0 45243 0 13250 0 24554 0 496984 0 0 Deborah Koski Sr. Exec Dir Sanford Health Foundati 212259 0 300 0 21143 0 10628 0 20414 0 264744 0 0 0 Christine McDonald-Dockter Thru Jan Chief Development Officer 0 3537 0 0 0 156956 0 177 0 8 0 160678 0 0 Part I, Line 1a Certain items listed on Line 1a are provided by related organizations. Part I, Line 3: The Executive Compensation Committee of the Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm annually to review the total compensation arrangements of the officers and executives of the organization, including the CEO, and to report the findings to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford Board of Trustees. The most recent study was completed in 2017. Part I, Lines 4a-b Of the $160,678 payments made to Christine McDonald-Dockter in 2016, $157,141 was related to separation from service. Certain executives participate in a defined benefit SERP Plan. There were no individuals who received payments during the year. Part I, Line 6 Sanford physicians are compensated based on the professional services they perform within the clinic in which they provide care. Generally, the model is based on production. Part I, Line 7 Certain employees are eligible for a discretionary incentive bonus. Bonuses are paid based on the achievement of financial and other goals. Substant Contributor #8 Substantial Contributor 208275 A substantial contributor was also paid as an vendor of services. 0 Substant Contributor #25 Substantial Contributor 120000 A substantial contributor was also paid as an vendor of services. 0 X 3 40173 Average high/low price 0 0 1 0 Part I, Column (b): The organization used the number of contributors method. Form 990, Part VI, Section A, line 2 The following officers, board members, and key employees are employees of Sanford or its related organizations. Many of these employees also serve on other related Sanford boards, or have business relationships with each other that span the organization as a whole: Maria Bell, Mark Lundeen, Mark Paulson, Michael LeBeau, Micah Aberson, Kelby Krabbenhoft, JoAnn Kunkel and Deborah Koski. Form 990, Part VI, Section A, line 6 Sanford is governed by a Board of Trustees (BOT) that has ultimate strategic and decision making authority. The BOT delegates certain activities and responsibilities to Boards of each of Sanford's primary operating subsidiaries. The unique nature and complexity of the subsidiaries requires each to have a delegated Board with a singular entity focus. Such bodies, referred to as Boards of Directors and Boards of Governors, address matters such as credentialing, accreditation standards, developing budgets, programs and facilities on an entity-specific basis, and generally consist of individuals distinct from the BOT. These Boards function much like committees in a traditional corporate structure. The BOT then act as a holding company Board, synthesizing and reconciling each entity's programs and budgets into a system-wide strategic plan. This structure of governance produces a significant number of trustees, governors and directors. Sanford is the sole member of Sanford Health. Sanford Health is the sole member of the organization. The Board of Trustees of Sanford also comprises the Board of Trustees for Sanford Health and for the organization. The Board of Trustees delegates authority to the Board of Directors of the organization. Actions approved by the organization's Board of Directors are then subject to approval by the Board of Trustees. Form 990, Part VI, Section A, line 7a The Sanford Board of Trustees appoints the board members for the Board of Directors of Sanford Health Foundation. Form 990, Part VI, Section A, line 7b The Sanford Board of Trustees approves the actions approved by the Board of Directors of Sanford Health Foundation. Form 990, Part VI, Section B, line 11b The Form 990 is prepared internally by Finance and reviewed by executive management. An external accounting firm reviews the return and prepares return highlights and key disclosures for the Board of Trustees meeting prior to the return filing date. Before the return is filed, a complete copy is provided to the current Board of Trustees. Form 990, Part VI, Section B, line 12c The annual Conflict of Interest disclosure process is managed by the Chief Compliance Officer (CCO). The CCO is responsible for assuring that all completed forms are returned in a timely and complete manner. Conflict of Interest questionnaires are sent to System Trustees, members of the governing boards of subsidiary entities, officers, and key employees for all entities subject to the IRS Form 990 filings. The disclosures are summarized for review by the executive committee of the Board of Trustees, pursuant to policy. This review allows: 1) The Board to acquire an awareness of financial relationships of board members and key management employees and can invoke the recusal process on a case-by-case basis if potential conflicts are implicated in Board decisions and deliberations, and, 2) Gives the Board the opportunity to seek additional information and clarification about disclosures to determine potential conflicts of interest, and how to manage them. Form 990, Part VI, Section B, line 15 A related party, Sanford Health, does have a process for determining compensation of the persons listed on Part VII Section A, including a review and approval by independent persons, review of comparability data and contemporaneous substantiation of the deliberation and decision for such compensation. The Executive Compensation Committee of the Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm annually to review the total compensation arrangements of the officers and executives of the organization, including the CEO, and to report the findings to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford Board of Trustees. The most recent study was completed in 2017. Form 990, Part VI, Section C, line 19 Although the organization does not maintain a website where the public can access these documents, it would respond individually to any requests or inquiries from the public for these documents. Form 990, Part VII: The Sanford Board of Trustees has ultimate governance responsibilities for each major operating entity within Sanford. In addition, a Board of Directors is established for each major operating entity. This Board has specific responsibilities delegated from the Board of Trustees. Generally these responsibilities are related to the oversignt of the day to day operations of that entity. Form 990, Part XI, line 9: Change in value of split-interest agreements 69,654. Transfer from related tax-exempt org for payroll and operating expenses 8,653,618. Sanford PO Box 5039 Rte 5218 Sioux Falls SD 571175039 271218956 Supporting Organization ND 501(c)(3) 12-II 0 Edith Sanford Breast Cancer Foundation PO Box 5039 Rte 5218 Sioux Falls SD 571175039 450404126 Foundation ND 501(c)(3) 12-II Sanford Health 1 F-M Ambulance Service Inc PO Box 5039 Rte 5218 Sioux Falls SD 571175039 450344371 EMT ND 501(c)(4) Sanford North 1 Sanford Health Foundation North PO Box 5039 Rte 5218 Sioux Falls SD 571175039 450398104 Foundation ND 501(c)(3) 7 Sanford North 1 Sanford Health Foundation Hillsboro PO Box 5039 Rte 5218 Sioux Falls SD 571175039 363542187 Foundation ND 501(c)(3) 7 Sanford Hillsboro 1 Sanford Health Foundation of Northern Minnesota PO Box 5039 Rte 5218 Sioux Falls SD 571175039 411389317 Foundation MN 501(c)(3) 12-II Sanford Health of Northern Minnesota 1 Sanford Health Foundation West PO Box 5039 Rte 5218 Sioux Falls SD 571175039 450397196 Foundation ND 501(c)(3) 7 Sanford Bismarck 1 Medcenter One Inc Auxiliary PO Box 5039 Rte 5218 Sioux Falls SD 571175039 237293043 Supporting Organization ND 501(c)(3) 12-II Sanford Bismarck 1 Sanford Heart of America Health Plan PO Box 5039 Rte 5218 Sioux Falls SD 571175039 450346132 Insurance ND 501(c)(4) Sanford Health Plan 1 Sanford Health Foundation Thief River Falls PO Box 5039 Rte 5218 Sioux Falls SD 571175039 411761135 Foundation MN 501(c)(3) 7 Sanford Medical Center Thief River Falls 1 National Student Housing-South Dakota LLC 100 S Phillips Ave Sioux Falls SD 57104 202129839 Investment SD N/A RAC Rentals LLC 100 S Phillips Ave Sioux Falls SD 57104 261961077 Investment SD N/A Sanford Home Medical Equipment Inc 2710 W 12th Street Sioux Falls SD 57105 460388597 Healthcare Equipment SD N/A C 1 Sanford Health Plan 300 Cherapa Place Sioux Falls SD 57103 911842494 Insurance SD N/A C 1 Sanford Health Plan of MN 300 Cherapa Place Sioux Falls SD 57103 460445852 Insurance MN N/A C 1 Sanford Frontiers 1305 W 18th Street PO Box 5039 Sioux Falls SD 571175039 455436599 Weight Loss/Fitness SD N/A C 1 SOB Inc 2701 S Minnesota Avenue Suite 2 Sioux Falls SD 57105 460442628 Air Transportation SD Sanford Health Foundation C 629086 1036071 1.00000 1 Sanford Affiliated Services Inc 300 N 7th Street Bismarck ND 58501 450403146 Investment Activity ND N/A C 1 Sanford World Clinics - Ghana Sarbah Road Tantri Lorry Station Cape Coast GH Healthcare GH N/A C 1 Shanghai Sanford Healthcare Management Consulting Co Ltd 188 Yesheng Road Room A-862 Guoma Shanghai CH Healthcare CH N/A C 1 Sanford International - Munich GmbH Nymphenburger Strasse 3 Munich GM Healthcare GM N/A C 1 Split Interest Trust (10) Trust SD N/A T 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 Sanford USD Medical Center B 41623300 Cash Method Sanford Health S 8653618 Cost Basis