2017-11-10T09:18:25-06:00 2016-12-31 990 2016-01-01 411448118 ST LUKE'S FOUNDATION STLU 2182492420 1000 EAST FIRST STREET NO 102 DULUTH MN 55805 ERIC LOHN CHIEF FINANCIAL OFFICER 2182495555 2017-11-10 192.101.143.1 2017-11-10 09:15:05 CS P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 C494F47B67DAB1626BBF5AB9DF094D21C8810BC8 2016 2018-03-14 21:41:22Z JOHN STRANGE 915 EAST 1ST ST DULUTH MN 55805 2455184 0 X HTTP://WWW.SLHDULUTH.COM/FOUNDATION X 1982 MN ST. LUKE'S FOUNDATION PROVIDES FINANCIAL SUPPORT TO ST. LUKE'S HOSPITAL OF DULUTH AND THE REGION. 17 15 0 56 0 0 960629 802783 0 0 252882 296929 162458 178558 1375969 1278270 803404 754982 0 0 273077 322485 0 0 118719 124252 137923 1200733 1215390 175236 62880 8919764 9669244 177345 471634 8742419 9197610 ST. LUKE'S FOUNDATION PROVIDES FINANCIAL SUPPORT TO ST. LUKE'S HOSPITAL OF DULUTH AND THE REGION IT SERVES TO ADVANCE PATIENT CARE, HEALTH EDUCATION, AND CLINICAL RESEARCH. 0 0 889431 754982 0 TO MAKE GRANTS TO ST. LUKE'S HOSPITAL OF DULUTH AND OTHER ORGANIZATIONS TO PURCHASE MEDICAL EQUIPMENT & SUPPLIES AND TO PROVIDE HEALTHY LIFESTYLE EDUCATION TO BOTH PUBLIC & HOSPITAL EMPLOYEES. DURING FISCAL YEAR 2016, ST. LUKE'S FOUNDATION PROVIDED $754,982 IN GRANTS TO ST. LUKE'S HOSPITAL OF DULUTH AND OTHER ORGANIZATIONS. 889431 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 4 0 0 0 0 0 0 0 1 1 0 0 0 0 X 17 15 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 MN X ST LUKE'S ACCOUNTING 2182495475 915 EAST FIRST STREET DULUTH MN 55805 DR TED HARWOOD CHAIR 1.00 0.00 X X 0 0 0 LINDA KRUG VICE CHAIR 1.00 0.00 X X 0 0 0 ROBERT ZALLAR SECRETARY 1.00 0.00 X X 0 0 0 KIM KEUNING PAST CHAIR 1.00 0.00 X X 0 0 0 HELENA JACKSON TREASURER 1.00 0.00 X X 0 0 0 JOHN CLOUTIER BOARD MEMBER 1.00 1.00 X 0 0 0 STEVEN DASTOOR BOARD MEMBER 1.00 0.00 X 0 0 0 DR SUSAN GOLTZ BOARD MEMBER 1.00 39.00 X 0 352623 24811 PEGGY HANSON BOARD MEMBER 1.00 0.00 X 0 0 0 EDWIN HALL BOARD MEMBER 1.00 1.00 X 0 0 0 LIZETTE LAWIEN BOARD MEMBER 1.00 0.00 X 0 0 0 SCOTT LYONS BOARD MEMBER 1.00 0.00 X 0 0 0 DEL PREVOST BOARD MEMBER 1.00 0.00 X 0 0 0 DR PAUL SANFORD BOARD MEMBER 1.00 39.00 X 0 292059 26914 JC WELLES BOARD MEMBER 1.00 0.00 X 0 0 0 CARMEN WENDLAND BOARD MEMBER 1.00 0.00 X 0 0 0 PAKOU LY BOARD MEMBER (AS OF 6/2016) 1.00 0.00 X 0 0 0 JACK SEILER BOARD MEMBER (THRU 6/2016) 1.00 0.00 X 0 0 0 JOHN STRANGE CHIEF EXECUTIVE OFFICER 2.00 38.00 X 0 663097 155741 ERIC LOHN CHIEF FINANCIAL OFFICER 2.00 38.00 X 0 361467 92606 CATHERINE CARTER HUBER EXECUTIVE DIRECTOR/COO 40.00 0.00 X 0 150734 19360 0 1819980 319432 0 0 1 0 0 133252 8150 661381 162835 802783 177364 177364 1131384 1011819 119565 119565 119565 343653 133252 165095 178558 178558 1278270 0 0 475487 754982 754982 173543 56516 64964 52063 129044 64522 25809 38713 19898 9949 3980 5969 8499 8499 45650 45650 450 450 23857 2386 16700 4771 5129 5129 23195 23195 697 626 71 3473 3473 MEMBERSHIP DUES 9770 9770 DONOR RECOGNITION 9208 9208 BAD DEBT 7995 7995 1215390 889431 207240 118719 150172 158517 282989 286001 5269 6000 3557 7804 8477777 9210922 8919764 9669244 9079 7663 6936 9153 161330 454818 177345 471634 X 4825505 5127151 3459771 3578316 457143 492143 8742419 9197610 8919764 9669244 62880 392311 0 X 0 1 X 1 0 X X 1 ST LUKE'S HOSPITAL 410714079 3 1 596445 0 1 596445 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 PART IV, SECTION A, LINE 2 ST. LUKE'S FOUNDATION COMPLETED THE PUBLIC SUPPORT CALCULATION IN SCHEDULE A, PART III FOR ST. LUKE'S HOSPITAL OF DULUTH FOR THE YEARS 2012-2016 AND DETERMINED THAT ST. LUKE'S HOSPITAL OF DULUTH WOULD ALSO QUALIFY AS A PUBLIC CHARITY UNDER SECTION 509(A)(2). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2123751 153236 17231 2259756 2225045 -62849 38445 2123751 2199757 48626 23338 2225045 1955443 262838 18524 2199757 1801754 204123 50434 1955443 0.05590 0.21780 0.72630 0 0 0 AMOUNTS DUE TO RELATED PARTY 454818 454818 X 1443365 0 1443365 -165095 -165095 1278270 1380485 165095 165095 1215390 0 1215390 PART V, LINE 4: THE PRIMARY PURPOSE OF THE ST. LUKE'S FOUNDATION ENDOWMENT FUNDS IS TO MAKE GRANTS TO ST. LUKE'S HOSPITAL AND OTHER ORGANIZATIONS TO PURCHASE MEDICAL EQUIPMENT AND SUPPLIES AND TO PROVIDE HEALTHY LIFESTYLE EDUCATION TO BOTH PUBLIC AND HOSPITAL EMPLOYEES. PART X, LINE 2: A NOTIFICATION LETTER HAS BEEN RECEIVED FROM THE INTERNAL REVENUE SERVICE STATING THAT THE FOUNDATION IS A TAX-EXEMPT ORGANIZATION UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE SECTION 501(C)(3). THE FOUNDATION HAS ELECTED TO ADOPT GUIDANCE IN THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE FOUNDATION FOLLOWS THE ACCOUNTING STANDARD FOR CONTINGENCIES FOR EVALUATING UNCERTAIN TAX POSITIONS. THE ADOPTION OF THIS STANDARD HAD NO EFFECT ON THE FINANCIAL STATEMENTS. PART XI, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSE -165,095. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSE 165,095. CIRCLE OF LIGHT 329473 114866 214607 103266 16048 7873 GOLF BENEFIT 92379 18386 73993 7569 21196 5912 5 55053 55053 2021 1210 476905 133252 343653 110835 39265 14995 165095 178558 0 ST LUKE'S HOSPITAL OF DULUTH 915 EAST FIRST STREET DULUTH MN 55805 410714079 501(C)(3) 596445 PURCHASED PROPERTY, HEALTH EDUCATION AND HOSPICE. UNIVERSITY OF MINNESOTA 1300 S 2ND STREET SUITE 545 MINNEAPOLIS MN 55454 416007513 STATE OF MINNESOTA 15000 UMD WHITESIDE RESEARCH GRANT FOND DU LAC TRIBAL & COMMUNITY COLLEGE FOUNDATION 2101 14TH STREET CLOQUET MN 55720 411849304 501(C)(3) 10000 MEDICAL SCHOLARSHIP GRANT WISCONSIN INDIANHEAD TECHNICAL COLLEGE FOUNDATION 505 PINE RIDGE DRIVE SHELL LAKE WI 54871 391313438 501(C)(3) 10000 MEDICAL SCHOLARSHIP GRANT 4 0 PART I, LINE 2: THE FOUNDATION REQUESTS THAT GRANTEES PROVIDE AN UPDATE ON THE IMPACT OF THE GRANT SIX MONTHS AFTER THE GRANT HAS BEEN MADE. IN ADDITION, THE FOUNDATION REVIEWS INVOICES SUPPORTING THE FUNDS USED FROM THE GRANT. THE AFOREMENTIONED PROCESS HELPS ENSURE THE GRANT WAS USED FOR THE INTENDED PURPOSE. X 0 1 X X 0 1 0 0 0 0 0 0 0 DR SUSAN GOLTZ BOARD MEMBER 0 351333 0 0 0 1290 0 5050 0 19761 0 377434 0 0 DR PAUL SANFORD BOARD MEMBER 0 290769 0 0 0 1290 0 7325 0 19589 0 318973 0 0 JOHN STRANGE CHIEF EXECUTIVE OFFICER 0 659287 0 0 0 3810 0 11278 0 144463 0 818838 0 0 ERIC LOHN CHIEF FINANCIAL OFFICER 0 361017 0 0 0 450 0 5050 0 87556 0 454073 0 0 CATHERINE CARTER HUBER EXECUTIVE DIRECTOR/COO 0 150044 0 0 0 690 0 2972 0 16388 0 170094 0 0 PART I, LINE 1A THE FOUNDATION DIRECTOR HAS A MEMBERSHIP AT A SOCIAL CLUB FOR BUSINESS PURPOSES. THE SOCIAL CLUB ONLY ALLOWS MEMBERSHIP TO INDIVIDUALS, NOT TO ORGANIZATIONS. THE SOCIAL CLUB SENDS AN INVOICE TO THE DIRECTOR, THE DIRECTOR FORWARDS THE INVOICE TO ST. LUKE'S HOSPITAL OF DULUTH, ST. LUKE'S HOSPITAL OF DULUTH PAYS THE INVOICE VIA ACCOUNTS PAYABLE. PART I, LINE 1B THE CFO SOUGHT GUIDANCE FROM THE AUDITORS REGARDING THE COO HAVING A MEMBERSHIP AT A SOCIAL CLUB FOR BUSINESS PURPOSES. THE AUDITORS ASKED IF THERE WAS PERSONAL USE, ST. LUKE'S VERIFIED IT IS STRICTLY FOR BUSINESS PURPOSES, AND THE AUDITORS ADVISED TO DISCLOSE THE MEMEBERSHIP ON THE 990. PART I, LINE 4B MEMBERS IN THE ST. LUKE'S HOSPITAL OF DULUTH'S 457F PLAN ARE JOHN STRANGE: 2016 CONTRIBUTION $96,658, OVER 62 - PAID IN CASH, 2016 DISTRIBUTION N/A; AND ERIC LOHN: 2016 CONTRIBUTION $60,443, VESTING DATE 1/1/2019, 2016 DISTRIBTUION $35,063.57. X 16967 FAIR MARKET VALUE X AUCTION GIFTS 298 120893 FAIR MARKET VALUE X TICKETS 1 24975 FAIR MARKET VALUE 0 0 1 0 FORM 990, PART VI, SECTION A, LINE 1 THE OFFICERS OF THE BOARD OF DIRECTORS SHALL SERVE AS EX-OFFICIO MEMBERS OF THE EXECUTIVE COMMITTEE WITH VOTE. THE CEO SHALL SERVE AS AN EX-OFFICIO MEMBER OF THE EXECUTIVE COMMITTEE WITHOUT VOTE. THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE POWERS AND AUTHORITY OF THE BOARD OF DIRECTORS OF THIS CORPORATION IN TRANSACTING THE REGULAR BUSINESS OF THE CORPORATION, INCLUDING DIRECTING THE MANAGEMENT OF THE PROPERTY, AFFAIRS AND BUSINESS OF THIS CORPORATION, DURING THE INTERVAL BETWEEN MEETINGS OF THE BOARD OF DIRECTORS, SUBJECT AT ALL TIMES TO THE DIRECTION AND CONTROL OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL NOT HAVE THE POWER TO AMEND THE ARTICLES OF INCORPORATION OR THESE BYLAWS, THE POWER TO REMOVE A DIRECTOR OR OFFICER, OR THE POWER TO FILL A VACANT BOARD SEAT OR OFFICER POSITION. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE CORPORATION SHALL BE ST. LUKE'S HOSPITAL OF DULUTH. FORM 990, PART VI, SECTION A, LINE 7A DIRECTORS SHALL BE ELECTED TO THE BOARD OF THE CORPORATION BY THE BOARD OF DIRECTORS OF THE HOSPITAL, OR BY AN OFFICER OF THE HOSPITAL DESIGNATED BY THE BOARD OF DIRECTORS OF THE HOSPITAL. FORM 990, PART VI, SECTION A, LINE 7B AMENDMENTS TO THE FOUNDATION'S ARTICLES OF INCORPORATION AND BYLAWS SHALL BECOME EFFECTIVE UPON THE APPROVAL OF THE BOARD OF DIRECTORS OF THE HOSPITAL. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REFERENCED MULTIPLE SOURCES OF INFORMATION IN ORDER TO ACCURATELY PREPARE THE 2016 FORM 990. THESE SOURCES INCLUDE THE INTERNAL REVENUE SERVICE WEBSITE, HEALTHCARE TRADE ASSOCIATIONS AND OTHER VARIOUS PUBLICATIONS. ONCE THE FORM 990 WAS PREPARED, IT WAS REVIEWED BY THE FOLLOWING GROUPS: 1. OFFICERS AND SENIOR MANAGEMENT (OCT 2017) 2. BOARD OF DIRECTORS (OCT 2017) THE ABOVE GROUPS WERE PROVIDED WITH A COMPLETE COPY OF THE 2016 FORM 990 IN ADVANCE. THE FORM 990 REVIEW WAS LISTED AS AN AGENDA ITEM ON THE BOARD OF DIRECTORS AGENDA. THE CHIEF FINANCIAL OFFICER PROVIDED AN OVERVIEW OF THE RETURN AND ANSWERED ANY QUESTIONS OR CONCERNS FROM THE BOARD. THE RETURN WAS THEN FILED ON OR BEFORE NOVEMBER 15, 2017. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR, OFFICER AND COMMITTEE MEMBER SHALL SIGN, AS A CONDITION TO SERVING THE CORPORATION IN HIS/HER RESPECTIVE ROLE AND ANNUALLY THEREAFTER, A STATEMENT AGREEING TO BE BOUND BY THE TERMS OF THE POLICY. PURSUANT TO THE POLICY, ANY DIRECTOR, OFFICER OR COMMITTEE MEMBER HAVING A FINANCIAL INTEREST IN A CONTRACT OR OTHER TRANSACTION PRESENTED TO THE BOARD OF DIRECTORS OR A COMMITTEE THEREOF FOR AUTHORIZATION, APPROVAL, OR RATIFICATION SHALL MAKE A PROMPT, FULL AND FRANK DISCLOSURE OF SUCH PERSON'S INTEREST TO THE BOARD OR COMMITTEE PRIOR TO ITS ACTING ON SUCH CONTRACT OR TRANSACTION. SUCH DISCLOSURE SHALL INCLUDE ANY RELEVANT AND MATERIAL FACTS, KNOWN TO SUCH PERSON, ABOUT THE CONTRACT OR TRANSACTION WHICH MIGHT REASONABLY BE CONSTRUED TO BE ADVERSE TO THE CORPORATION'S INTEREST. THE BOARD OR COMMITTEE TO WHICH SUCH DISCLOSURE IS MADE SHALL THEREUPON DETERMINE, BY MAJORITY VOTE, WHETHER THE DISCLOSURE SHOWS THAT A CONFLICT OF INTEREST EXISTS OR CAN REASONABLY BE CONSTRUED TO EXIST. IF A CONFLICT IS DEEMED TO EXIST, SUCH PERSON SHALL NOT VOTE ON, NOR USE PERSONAL INFLUENCE ON, OR PARTICIPATE (OTHER THAN TO PERSENT FACTUAL INFORMATION TO OR RESPOND TO QUESTIONS) IN THE DISCUSSIONS AND DELIBERATIONS WITH RESPECT TO SUCH CONTRACT OR TRANSACTIONS. SUCH PERSON MAY BE COUNTED IN DETERMINING THE EXISTENCE OF A QUORUM AT ANY MEETING WHERE THE CONTRACT OR TRANSACTION IS UNDER DISCUSSION OR IS BEING VOTED UPON. THE MINUTES OF THE MEETING SHALL REFLECT THE DISCLOSURE MADE, THE VOTE AND, WHERE APPLICABLE, THE ABSTENTION FROM VOTING AND PARTICIPATION, AND WHETHER A QUORUM WAS PRESENT. FORM 990, PART VI, SECTION B, LINE 15A THE EXECUTIVE DIRECTOR IS AN EMPLOYEE OF ST. LUKE'S HOSPITAL OF DULUTH, A 501(C)(3) RELATED ORGANIZATION. THE COMPENSATION REVIEW PROCESS DESCRIBED BELOW PERTAINS TO THE EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR IS THE TOP MANAGEMENT OFFICIAL. THERE ARE NO EMPLOYEES WHO QUALIFY AS KEY EMPLOYEES OF THE ORGANIZATION. THE COMPENSATION REVIEW PROCESS OCCURS DURING AN ANNUAL REVIEW PERFORMED BY THE ST. LUKE'S HOSPITAL OF DULUTH'S HUMAN RESOURCES DEPARTMENT AND LAST OCCURRED IN 2016. TOTAL COMPENSATION FOR THE EXECUTIVE DIRECTOR WAS ITEMIZED INCLUDING BASE SALARY, HEALTH INSURANCE, DENTAL INSURANCE, LIFE INSURANCE, DISABILITY, VACATION, AND HOLIDAY PAY. ALL AMOUNTS WERE COMBINED TO DETERMINE THE TOTAL COMPENSATION FOR THIS POSITION. THE TOTAL COMPENSATION AMOUNT IS REVIEWED BASED ON MARKET DATA PROVIDED BY INTEGRATED HEALTHCARE STRATEGIE FOR LIKE POSITIONS IN HEALTHCARE ORGANIZATIONS OF COMPARABLE SIZE AND SCOPE CONTEMPORANEOUS DOCUMENTS AND RECORDKEEPING WITH RESPECT TO THE DELIBERATIONS AND DECISIONS ARE MAINTAINED BY THE ST. LUKE'S HOSPITAL OF DULUTH'S HUMAN RESOURCES DEPARTMENT. THE FOUNDATION BOARD OF DIRECTORS APPROVES THE ANNUAL COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 ST. LUKE'S FOUNDATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST STATEMENTS ARE REVIEWED AND UPDATED ANNUALLY BY THE BOARD OF DIRECTORS. THEY ARE NOT AVAILABLE TO THE GENERAL PUBLIC. FINANCIAL INFORMATION IS MADE AVAILABLE THROUGH ST. LUKE'S FOUNDATION ANNUAL REPORT (PUBLISHED EVERY YEAR AND AVAILABLE ON ST. LUKE'S HOSPITAL OF DULUTH'S WEBSITE AT WWW.SLHDULUTH.COM). ST LUKE'S HOSPITAL OF DULUTH 915 EAST 1ST STREET DULUTH MN 55805 410714079 HEALTH CARE/HOSPITAL MN 501(C)(3) LINE 3 N/A 0 LAKE VIEW MEMORIAL HOSPITAL INC 325 11TH AVENUE TWO HARBORS MN 55616 410786046 HEALTH CARE/HOSPITAL MN 501(C)(3) LINE 3 ST LUKES HOSPITAL OF DULUTH 0 LAKE VIEW MEMORIAL HOSPITAL FOUNDATION OF NORTHEAST MINNESOTA 325 11TH AVENUE TWO HARBORS MN 55616 411700972 PROVIDE SUPPORT TO LAKE VIEW MEMORIAL HOSPITAL, INC. MN 501(C)(3) LINE 12A, I LAKE VIEW MEMORIAL HOSPITAL INC 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0