2015-09-03T16:08:47-05:00 2014-12-31 861065772 Deloitte Tax LLP 50 South Sixth Street Ste 2800 Minneapolis MN 55402 990 2014-01-01 411200302 Gillette Children's Hospital Foundation GILL 6512912848 200 University Avenue East St Paul MN 55101 James Haddican VP Finance 6512912848 2015-09-02 1 Kristina Rasmussen P00143920 6123974000 2014 2016-02-25 16:41:14Z James Haddican 200 University Avenue East St Paul MN 55101 10991855 0 X www.gillettechildrens.org X 1985 MN The Foundation raises money for and otherwise supports Gillette Children's Specialty Healthcare. 23 19 0 117 0 0 7214296 10132519 0 0 2293934 240881 -397813 -424493 9110417 9948907 1639111 3039678 0 0 2140881 1476542 343090 152468 1997573 1014771 1140424 5137853 5809112 3972564 4139795 18648647 23481935 725827 1174237 17922820 22307698 X The mission of Gillette Children's Hospital Foundation (Foundation) is to raise money, build awareness, and develop relationships so the mission of Gillette Children's Specialty Healthcare (Gillette) can be fulfilled. 0 0 1150585 1150585 Research:In 2014, grants from the Foundation primarily supported Gillette's research and education program. The grants offset the $1.9 million in costs associated with Gillette's research efforts. Research is vital to ensuring that Gillette's patients receive the right treatments at the right time to bring about the best outcomes. It's also the key to developing effective medical interventions for disabling conditions and their related effects.See Schedule O. Gillette has four designated research areas: gait and motion analysis, pain and comfort, musculoskeletal conditions, and neurological services. Gillette has studied human movement, conducting both basic and clinical research that has gained international recognition, for more than 25 years.In 2014, Gillette researchers took part in 33 new projects. For example, two studies are looking at the effect of standing devices on health and functional ability in people who are generally unable to stand and spend most of their lives seated. One study involves children who have cerebral palsy and the other children who have spinal muscular atrophy. Another project is studying the long-term effects of selective dorsal rhizotomy surgery on walking ability in young adults. In 2014, Gillette doctors and staff published 43 research studies in medical journals and spoke at numerous medical conferences. Through its priority areas for coordinated research, Gillette is working to increase the amount and quality of clinically relevant research conducted in the organization.In addition, Gillette's expertise benefits people around the world who have disabilities through the organization's participation in fellowships, seminars and other educational programs. For physicians who desire in-depth training, Gillette offers residencies and fellowships in such specialties as pediatrics, orthopedics, and pediatric rehabilitation medicine. As a teaching hospital, Gillette trains the physicians of the future. Residents from the University of Minnesota and Henry Ford Hospital in Detroit spend one to three months under the mentorship of Gillette's medical staff. In many cases, Gillette offers physicians their only exposure during residency to patients who have certain disabilities. In 2014, Gillette trained 96 residents and 13 fellows in its core specialty areas of orthopedics, pediatrics, neurodevelopmental pediatrics, and rehabilitation medicine. Gillette also offers shadowing and mentorship programs for students, along with professional education opportunities in such areas as physical therapy, radiology, nursing, respiratory care and assistive technology.Gillette covers the unreimbursed costs of medical education and is fully accredited by the Minnesota Medical Association to provide continuing medical education (CME) for physicians. Each year, Gillette sponsors conferences on topics such as cerebral palsy, orthopedics and motion analysis. Last year, Gillette provided more than 90 hours of medical education to nearly 1,900 community health care professionals. The conferences educate medical professionals about treatment options for children who have disabilities. Typical audiences include pediatricians, family practitioners and other physicians. CME activities are open to other health professionals. Gillette's CME audiences might include nurse practitioners, physician assistants, nurses, physical therapists, occupational therapists, speech and language therapists, orthotists and prosthetists. 1086558 1086558 Patient care:The Foundation raises money to support Gillette's patient-care needs. In 2014, a significant portion of the money raised for patient care went toward financial assistance and charity care to patients. Gillette offers financial aid to those who need it, whether or not they have health insurance and charity care for patients who are financially unable to pay all or part of their medical bills. See Schedule O.Gillette evaluates each situation based on a patient's income, assets and other resources, and the hospital helps patients set up manageable payment plans (including co-pays and co-insurance). For people who don't have insurance, Gillette charges for care in accordance with the 501[r] guidelines. If patients inform Gillette that they will have a difficult time meeting their financial obligations, Gillette will try to qualify patients for public assistance or Gillette's charity care program. Income eligibility for Gillette's program is based on national poverty guidelines.In addition, this fundraising area provides charitable support to the many areas of Gillette's operations that are unreimbursed or under-reimbursed by third-party payers. For example, Gillette holds Outreach Clinics in 14 communities in greater Minnesota. A recent community health assessment identified access to specialized care as a major challenge for families who reside in greater (largely rural) Minnesota and surrounding states-but in providing those mission-driven services, Gillette incurs losses. Gillette's Outreach Clinics offer services from doctors, nurse practitioners, seating and adaptive equipment specialists, and rehabilitation engineering technologists, providing patients with more convenient and timely health care appointments. They also enhance the knowledge base of community providers and improve the quality of ongoing care available in greater Minnesota. Similarly, Gillette also provides a variety of services to patients through our Child and Family Services area that are unreimbursed or under-reimbursed. Child life specialists help children and families prepare for and cope with hospital stays and medical procedures. They offer play therapy, music therapy and positive distractions to help patients understand their health-care experiences and overcome fear and anxiety. Social workers provide emotional support and help with practical concerns for families of children who have disabilities, such as ordering medical equipment and finding transportation or other resources. Therapeutic recreation specialists help Gillette patients develop healthy lifestyles. And Gillette Lifetime Specialty Healthcare offers services for patients 16 and older who have conditions that began during childhood and require lifelong specialty care. Gillette treats the age-related effects of cerebral palsy, epilepsy, spina bifida and neuromuscular conditions. 802535 802535 Capital: In 2014, the Foundation transferred funds to provide capital to expand Gillette's Dentistry and Orthodontics department; open the Gillette Mankato Clinic; and begin work on a therapy pool that will open in St. Paul in 2015.Because few traditional dentists have the facilities, equipment or trained staff to serve people who have disabilities, Gillette doubled the capacity of its Dentistry and Orthodontics area at the St. Paul Clinic in 2014. See Schedule O.Gillette offers care from dentists and orthodontists who understand the unique needs of people who have disabilities and complex conditions. Insufficient or irregular dental care increases the risk of tooth decay and oral infections, conditions that can lead to poor nutrition and failure to thrive or heal. And physical or cognitive challenges often stand in the way of maintaining oral health. People who have cerebral palsy, for example, might have muscles that involuntarily move and tighten, impeding the ability to brush and floss daily. And people who have cognitive impairments may be unable to open their mouths on request or may react with such anxiety that they risk harming themselves. For such reasons, Gillette patients may need longer appointments up to two hours to receive the same dental work as a nondisabled person. Gillette's Dentistry and Orthodontics area now includes five dental bays-an important advancement for patients. Gillette provides cleanings, fluoride treatments, X-rays, fillings, crowns, extractions, root canals and soft tissue surgery for people who have disabilities. Gillette also offers orthodontia and dental services for children born with cleft lip and/or palate or other craniofacial anomalies. In addition, Gillette has custom exam chairs designed to meet the needs of people who have disabilities, a station suited for patients who use wheelchairs, and sedation for patients who are unable to tolerate general dentistry or orthodontia procedures without it. To expand care for patients closer to their homes, Gillette increased the number of physician specialties available through its Outreach Clinics and added sites including the Gillette Mankato Clinic. Each week in Mankato, Gillette offers services in pediatric neurology, pediatric orthopedics and pediatric rehabilitation medicine. One to two times per month, physicians in pediatric craniofacial surgery, pediatric neurosurgery, pediatric spine orthopedics, sleep medicine and specialty pediatrics see patients at the Mankato location. A family nurse practitioner and two registered nurses are on-site full-time to coordinate care and refill intrathecal baclofen pumps. The Gillette Mankato Clinic also offers assistive technology services for patients who need orthoses, prostheses, custom wheelchair seating and controls, and related equipment.The new therapy pool in St. Paul will increase Gillette's capacity to offer aquatic therapy to patients. Aquatic therapy opens up new possibilities for patients by making movement easier than it would be on land. The buoyancy of water reduces stress on joints and helps to support body weight. Water also offers resistance, enabling patients to strengthen their muscles. In addition, water can decrease swelling, help muscles relax and improve blood flow. The result is an ideal environment for patients to improve their abilities and practice skills. Gillette offers aquatic therapy in Burnsville and Maple Grove in addition to St. Paul. Each pool is designed for patients who have disabilities and complex conditions. 3039678 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 1 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 X 6 6 0 0 0 0 0 0 0 1 1 0 0 0 0 0 X 23 19 1 0 0 0 1 1 0 1 1 0 0 0 1 1 1 0 0 1 1 0 MN WI X James L Haddican 6512912848 200 University Avenue East St Paul MN 55101 Brad Keil Chairman 1.00 1.00 X X 0 0 0 Mark Kimball Vice Chairman 1.00 1.00 X X 0 0 0 Yvonne Cheek Secretary 1.00 1.00 X X 0 0 0 Scott Robinson Treasurer 1.00 1.00 X X 0 0 0 Barbara Joers President, CEO 15.00 40.00 X X 0 510691 50390 Phil Becker Director 1.00 1.00 X 0 0 0 David Bestler Director 1.00 1.00 X 0 0 0 Fay DeBellis Director 1.00 1.00 X 0 0 0 John Ellenberger Director 1.00 1.00 X 0 0 0 David Fettig Director 1.00 1.00 X 0 0 0 John Foster Director 1.00 1.00 X 0 0 0 John Guider Director 1.00 1.00 X 0 0 0 Diane Harper Director 1.00 1.00 X 0 0 0 Michael Healy MD Chief of Staff Elect 1.00 40.00 X 0 577427 53813 Debbie Koop Director 1.00 1.00 X 0 0 0 Dan Monson Director 1.00 1.00 X 0 0 0 Deborah S Quanbeck MD Director 1.00 40.00 X 0 536986 62557 Kristin Rasmussen Director 1.00 1.00 X 0 0 0 Connie Suchta Director 1.00 1.00 X 0 0 0 Phillip Trier Director 1.00 1.00 X 0 0 0 Robert Wagner MD Chief of Staff 1.00 40.00 X 0 248736 28792 Warren Watson Director 1.00 1.00 X 0 0 0 Martin Winges Director 1.00 1.00 X 0 0 0 Jon Galloway VP of FND (End 4/15/14) 40.00 0.00 X 199589 0 22801 James Haddican VP of Finance 5.00 40.00 X 0 384749 46412 Darlis Clausen CMN Manager 40.00 0.00 X 131578 0 15897 Blaine Thrasher Supervisor Senior Gifts 40.00 0.00 X 130532 0 30221 461699 2258589 310883 3 0 1 0 NNE Marketing 754 Massachusetts Avenue Arlington MA 02476 Direct Marketing 116468 1 1006222 9126297 854631 10132519 240545 240545 382948 382612 336 336 336 193707 1006222 655955 -462248 -462248 42136 4381 37755 37755 9948907 0 0 -183612 3022922 3022922 16756 16756 222390 222390 1254152 162551 1091601 19788 6983 12805 152468 152468 32093 19898 12195 131168 101764 29404 65614 10607 55007 303355 96119 207236 29176 17809 11367 64806 15035 49771 37185 23055 14130 Dues & Memberships 284250 66162 218088 Bad Debt 98565 98565 Meals 22258 6166 16092 Minor Equipment 15179 7192 7987 36987 16130 20857 5809112 3039678 771861 1997573 X 1107061 4223606 8651260 8845450 764771 1298063 103347 53113 287332 209273 255132 112651 179666 142481 7200541 8359146 354669 350803 18648647 23481935 14959 52092 710868 1122145 725827 1174237 X 10749779 13307685 4934020 6760992 2239021 2239021 17922820 22307698 18648647 23481935 4139795 243783 1300 0 X 0 1 X 1 0 X X 1 Gillette Children's Specialty Healthcare 363379150 3 1 2961703 0 1 2961703 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3282691 839883 28253 170053 100041 3880733 3365618 105570 303267 362928 128836 3282691 3365786 79278 480113 446878 112681 3365618 3791838 8432 56433 369299 121618 3365786 3708926 7209 402507 180146 146658 3791838 0.58000 0.42000 0 0 255132 112651 142481 142481 Gift Annuity Liability - Wisc 62391 Gift Annuity Liability 60784 Due to Medical Center 998970 1122145 X 10854328 243787 1300 660334 905421 9948907 0 9948907 6469446 660334 660334 5809112 0 5809112 Part V, Line 4: The Foundation has endowment funds for capital, charity care, patient care, research and education, and unrestricted needs. These funds are used to improve and provide health care and related services to patients of Gillette. Part X, Line 2: As a result of the implementation of the authoritative guidance on the accounting for uncertainty in income taxes, the organization was not required to recognize a liability. There were no unrecognized tax liabilities for the years ended December 31, 2014 and 2013. Part XI, Line 2d - Other Adjustments: Special events expense 660,334. Part XII, Line 2d - Other Adjustments: Special events expense 660,334. X X X X X X 1 NNE Marketing 754 Massachusetts Avenue Arlington MA 02476 Direct Mail 0 197543 116468 81075 Strategic Fundraising 7591 Nineth Street N Oakdale MN 55128 Telefundraising 0 51172 36000 15172 248715 152468 96247 MN WI Come Fly with Me Event 303400 271755 31645 295905 Friends of Gillette Event 292321 233421 58900 91915 6 604208 501046 103162 268135 1199929 1006222 193707 655955 655955 -462248 42136 4381 0 42136 4381 4381 37755 MN 1 A license is not required in the State of Minnesota for 5 or fewer raffles. The Foundation held 5 raffles this year. A State exempt permit was obtained on each of them. 0 1 0 0.00000 1.00000 James L Haddican 200 University Avenue East St Paul MN 55101 0 Blaine Thrasher 0 Mr. Thrasher oversees gaming activities conducted during the year. X 0 Schedule G, Part I, Line 2b, Column (v) In 2014, Gillette retained NNE Marketing, a direct response agency, to help with fundraising efforts. The amount paid to NNE in 2014 included payments for printing and production costs that NNE in turn paid out to printers and database contractors. Gillette also retained Strategic Fundraising for services to execute a telefundraising program. Gillette's strategy for direct response and telefundraising programs is twofold: 1) to acquire new donors at an acceptable new donor investment level and 2) to increase the number of donors who support the Foundation year over year and create positive giving relationships with those donors. Gillette is measuring and seeing improvement in both of these strategic initiatives. 1 Strauss Skates 1751 E Cope Avenue Maplewood MN 55109 411446679 11932 Adaptive Equipment Technology for Education 4131 Old Sibley Mem Hwy Ste 200 Eagan MN 55122 411814073 9808 Adaptive Equipment Gillette Children's Specialty Healthcare 200 University Avenue East St Paul MN 55101 363376150 501(c)(3) 2961703 General Support 1 2 Patient Care Grants 21 16756 FMV Part I, Line 2: Members of Gillette's hospital board are also members of the Foundation board, resulting in common control of both entities and the sharing of community oversight, strategic planning, financial oversight, and fundraising responsibilities equally among all board members. As a Type II support organization pursuant to IRC section 509(a)(3), Reg. 1.509(a)-4(f)(2)(ii), the Foundation grants monies to Gillette and maintains endowment funds, restricted and unrestricted assets, and contributions received to benefit Gillette. These funds held by the Foundation are granted to Gillette pursuant to the restrictions of the particular fund. Periodically, the Foundation receives financial reports from Gillette documenting the use of monies, including endowment funds, restricted funds, and unrestricted funds, received by Gillette. X X X X 0 1 0 0 0 0 0 1 0 Barbara Joers President, CEO 0 426725 0 0 0 83966 0 13780 0 36610 0 561081 0 0 Michael Healy MD Chief of Staff Elect 0 529308 0 11119 0 37000 0 13780 0 40033 0 631240 0 0 Deborah S Quanbeck MD Director 0 483291 0 625 0 53070 0 17150 0 45407 0 599543 0 0 Robert Wagner MD Chief of Staff 0 225934 0 625 0 22177 0 12231 0 16561 0 277528 0 0 Jon Galloway VP of FND (End 4/15/14) 89755 0 70956 0 38878 0 18734 0 4067 0 222390 0 22234 0 James Haddican VP of Finance 0 267791 0 75182 0 41776 0 15556 0 30856 0 431161 0 0 Blaine Thrasher Supervisor Senior Gifts 129730 0 700 0 102 0 7216 0 23005 0 160753 0 0 0 Part I, Line 3 The chair of Gillette's personnel committee requests information from the external consultant. The personnel committee is empowered to evaluate the reasonableness of compensation. It does so in all cases by referencing recognized, objective resources on the reasonableness of and market value for the types of personnel and services being considered. That data is prepared for and distributed to the personnel committee members. Compensation policy is approved by the board of directors. Actions related to CEO/president and other executive compensation are discussed and voted upon at personnel committee meetings. Meeting minutes are recorded. Part I, Line 4b Certain employees of Gillette are provided the opportunity to participate in various non-qualifed compensation plans organized under code section 457(f). The exact purpose of each plan varies but they include: compensation limitation make-up plans, supplemental retirement benefits and capital accumulation. All plans are administered by Gillette. The following employees received payments from the non-qualified deferred compensation plans in 2014, which have been previously reported as amounts deferred on a prior Form 990: Jon Galloway $22,234 Part I, Line 7 Certain employees are eligible for an annual one-time award to recognize employees. The amount and payment of the award is made at the discretion of the Personnel Committee of the Board of Directors. X 17 850218 Cost or selling price X In-Kind Gifts 3 4413 Cost or selling pric 0 0 1 1 Part I, Column (b): This is the number of contributions. Part I, Line 32b: The Foundation used Charles Schwab and Twele Capital Management, Inc., to manage stock donations in 2014. Form 990, Part V, Line 1c: The Foundation provided two noncash items to raffle winners. The Foundation did issue W2Gs; however, the Foundation did not receive a Social Security Number or Employee Identification Number for the noncash prizes that it awarded. Therefore, the Foundation did not perform any backup withholding as there was no cash involved in the transaction. Form 990, Part VI, Section A, line 2 Members of Gillette's hospital board are also members of the Foundation board, resulting in common control of both entities and the sharing of community oversight, strategic planning, financial oversight, and fundraising responsibilities equally among all board members. The following individuals have a business relationship: Phil Becker David Bestler Yvonne Cheek Fay DeBellis John Ellenberger David Fettig John Foster John Guider Diane Harper Michael Healy, MD Barbara Joers Brad Keil Mark Kimball Debbie Koop Dan Monson Deborah S. Quanbeck, MD Kristin Rassmussen Scott Robinson Connie Suchta Phillip Trier Robert Wagner, MD Warren Watson Martin Winges James Haddican Form 990, Part VI, Section A, line 6 The Foundation has a sole member, Gillette Children's Speciality Healthcare, a Minnesota nonprofit corporation. Form 990, Part VI, Section A, line 7a The Foundation has a sole member, Gillette Children's Specialty Healthcare, a Minnesota nonprofit corporation which elects all members of the Foundation board. Form 990, Part VI, Section B, line 11 A copy of the form 990, including all supplemental schedules except schedule B, was provided to every member of the governing body before it was filed. Schedule B was redacted in order to protect donor confidentiality. The form was completed by a committee that included representatives from finance, human resources and communications. This committee prepared all the documentation necessary; the forms were compiled by Gillette's accounting firm. The draft documents were then reviewed by representatives from our Administrative Council. After all internal reviews were complete, the final version was presented to the finance committee and the board of directors for approval. Form 990, Part VI, Section B, line 12c Gillette enforces policies on external professional activities. Gillette employees, officers, volunteers, board members, and medical staff members are expected to disclose outside activities that involve potential conflicts of interests. In fact, directors must sign a conflict of interest statement acknowledging any potential conflicts related to Gillette. Gillette requires staff members to discuss potential conflicts with their immediate manager and with the compliance officer. The disclosure includes a written description of the activity, the extent of the staff member's participation, and the possible duration of the relationship. If a conflict exists, the employee must not engage in the activity. Form 990, Part VI, Section B, line 15 Foundation staff members are employed by Gillette. Gillette is the organization that actually pays the compensation and has the process for determining compensation as stated below. At the request of the personnel committee of the Gillette board, an independent consultant provides the committee with survey data and recommendations for chief executive officer (CEO)/president and other executive salary ranges based on Gillette's compensation philosophy, which was developed by the personnel committee and is reviewed regularly. The members of this committee determine the CEO/president's salary and the salary ranges for other executives. The committee oversees the executive incentive plan, approves any incentive plan payouts, and regularly evaluates the benefits provided to executives. The external consultant has provided an opinion that the CEO/president's total compensation is well within the standards of reasonableness and fair market value. In addition to the oversight function of executive total compensation, the personnel committee oversees any payments under any incentive compensation plans and evaluates all transactions with "disqualified persons." Form 990, Part VI, Section C, line 19 Gillette posts an abbreviated audited financial statement to its website, www.gillettechildrens.org. Gillette's 990 form is available from the states of Minnesota and Wisconsin and at Guidestar.org. Gillette discloses financial statements to bondholders, the MHA and the Minnesota attorney general's office. The governing documents and conflict of interest policy are made available to the public upon request. Form 990, Part VI, Section B, Line 14: Foundation employees are expected to follow all hospital policies. The code-of-conduct, document-retention, and document-destruction policies authored by the hospital hence are followed by the Foundation staff. Gillette Children's Specialty Healthcare 200 University Avenue East St Paul MN 55101 363379150 Healthcare MN 501(c)(3) Line 3: 170(b)(1)(a) N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1