2014-05-09T10:05:45-05:00 2013-06-30 861065772 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2012-07-01 363297853 Sanford Health Foundation SANF 6053285700 101 S Reid Street No 202 Sioux Falls SD 57103 JoAnn Kunkel 6053331000 2014-05-09 1 Kristina Rasmussen P00143920 6123974000 2012 2015-11-30 17:44:51Z Kelby Krabbenhoft 101 S Reid Street No 202 Sioux Falls SD 57103 166029960 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 0 510 0 0 12791742 20150514 0 0 28384646 26461485 18186 17236 41194574 46629235 37743515 39186827 0 0 1828105 1970493 0 0 1463497 1347755 1084598 40919375 42241918 275199 4387317 613301855 605215311 6592845 6401958 606709010 598813353 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 4565080 4565080 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 ($2,873,844), equipment and facility improvement projects ($1,641,048) and other internal programs ($50,188). 204180 204180 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. 34417567 34417567 Grants help support the Sanford Initiatives and collaborations with healthcare organizations such as the Children's Oncology Group and nursing and medical schools affiliated with Sanford Health. 39186827 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 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 1 1 0 0 1 12 2 1 0 0 0 0 0 0 1 1 0 0 0 0 0 X 15 7 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN OR X JoAnn Kunkel CFO 6053331000 1305 W 18th Street Sioux Falls SD 571175039 X Barb Everist 0.10 5.30 X 0 0 0 Barbara Stork 0.10 5.30 X 0 0 0 Barry Martin thru Nov 12 0.10 5.30 X 0 0 0 Brent Teiken 0.10 5.30 X 0 0 0 Christopher Meeker MD 0.10 59.90 X 0 213821 31035 David Beito 0.10 5.30 X 0 0 0 Don Morton 0.10 5.30 X 0 0 0 Jerome Feder 0.10 5.30 X 0 0 0 Jim Entenman 0.10 5.30 X 0 0 0 Lauris Molbert 0.10 5.30 X 0 0 0 Mark Paulson MD 0.10 59.90 X 0 248496 32936 Mikal Claar thru Nov 12 0.10 5.30 X 0 0 0 Patrick Durick 0.10 5.30 X 0 0 0 Richard Hardie MD 0.10 59.90 X 0 747423 33818 Ronald Moquist 0.10 5.30 X 0 0 0 Thomas Hruby 0.10 5.30 X 0 0 0 Kelby K Krabbenhoft 0.10 59.90 X X 0 1539421 22054 Kelby K Krabbenhoft Deferred Comp 0.10 59.90 X X 0 0 589623 JoAnn L Kunkel 0.50 59.50 X 0 438048 33700 Lisa Carlson thru Oct 12 0.50 59.50 X 0 644186 31847 Brian Mortenson 20.00 40.00 X 369026 0 35434 Brian Bonde 60.00 0.00 X 174504 0 37535 Deborah Koski 60.00 0.00 X 173029 0 34778 Marlin VanPeursem 60.00 0.00 X 110541 0 15096 827100 3831395 897856 4 0 1 0 The Creative Collaboration Gang Inc 225 Water Street Jordan MN 55352 Event Services 243054 Best Western Ramkota Hotel 3200 W Maple Street Sioux Falls SD 57107 Event Vendor 224589 2 189562 28151 19932801 3030341 20150514 26318982 26318982 118858061 118715558 142503 142503 142503 686691 189562 685167 1524 1524 Other Operating Rev 525990 14093 14093 Donor CSV Adj 525990 1619 1619 15712 46629235 0 0 26478721 39186827 39186827 357830 357830 1213258 606816 606442 66594 39780 26814 227806 133600 94206 105005 56730 48275 32307 32307 248973 127380 121593 133132 28148 104984 2731 2731 174416 154496 19920 48725 759 47966 4685 1601 3084 44390 44390 5828 5828 Uncollectible Pledges 144606 144606 Donor Stewardship 96913 96913 Professional Dues 81443 785 80658 Fundraising Materials 65305 65305 1144 1144 42241918 39186827 1591594 1463497 253115 200500 17524725 9668720 53759 21596 636890 231611 147648 405279 594531542 594181504 791066 737712 613301855 605215311 35553 36637 15495 0 5835568 5734193 706229 631128 6592845 6401958 X 442906843 434818575 132916918 131256331 30885249 32738447 606709010 598813353 613301855 605215311 X 4387317 -17676368 5393394 X 0 1 X 1 0 X X X 0 0 0 Sanford USD Medical Center 460227855 3 1 33025976 1 33025976 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 30885249 1773556 79642 32738447 29250489 1604392 30368 30885249 26563483 2527154 159852 29250489 23816626 2689481 57376 26563483 23464847 323063 33882 5166 23816626 1.00000 0 0 107537 13280 94257 529353 218331 311022 405279 Annuities payable 631128 631128 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. Description of Intended Use of Endowment Funds: 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. Description of Uncertain Tax Positions Under FIN 48: 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, 2013; however, some related organizations have established reserves. Children's Gala 820502 136206 684296 224689 38662 420945 CMN Walleye Classic 27315 27275 40 2 28436 26081 2355 871 876253 189562 686691 224689 38662 421816 685167 1524 1 Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 501(c)(3) 33025976 See Form 990, Page 2, Part III Edith Sanford Breast Cancer Foundation 101 S Reid Street Sioux Falls SD 57103 450404126 501(c)(3) 6159531 See Form 990, Page 2, Part III 2 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, 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. 0 1 0 0 0 0 1 1 0 Christopher Meeker MD 0 213821 0 0 0 0 0 8842 0 22193 0 244856 0 0 Mark Paulson MD 0 200747 0 0 0 47749 0 12500 0 20436 0 281432 0 0 Richard Hardie MD 0 743706 0 0 0 3717 0 15000 0 18818 0 781241 0 0 Kelby K Krabbenhoft 0 941885 0 332500 0 265036 0 0 0 22054 0 1561475 0 0 Kelby K Krabbenhoft Deferred Comp 0 0 0 0 0 0 0 589623 0 0 0 589623 0 0 JoAnn L Kunkel 0 321232 0 80000 0 36816 0 14146 0 19554 0 471748 0 0 Lisa Carlson thru Oct 12 0 434253 0 129600 0 80333 0 12500 0 19347 0 676033 0 0 Brian Mortenson 260827 0 66250 0 41949 0 14380 0 21054 0 404460 0 0 0 Brian Bonde 163981 0 300 0 10223 0 9857 0 27678 0 212039 0 0 0 Deborah Koski 161827 0 300 0 10902 0 9727 0 25051 0 207807 0 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 to annually 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 2013. Part I, Line 4b Schedule J, Part II, Column C: Employer contributions to pension plans, amounts representing increases and decreases in actuarial value (actuarial value factors include age, tenure and salary) of defined benefit SERP Plans are included in Column C. Participants and changes in values include: Kelby Krabbenhoft $433,820 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, based on financial targets and other goals. Supplemental Information Part III Supplemental: Compensation reported on Schedule J includes: (B)(i) Base compensation - salaries are based on the experience and performance of each executive and benchmarked using independent compensation survey information. (B)(ii) Bonus & incentive compensation - as part of executive compensation, individuals may be eligible for incentive performance compensation, however if the organization does not meet its financial targets, incentive payments are not paid, regardless of performance. (B)(iii) Other reportable compensation - generally includes taxable executive benefits. (C) Deferred compensation - includes employer contributions to pension plans and the increase (or decrease) in the actuarial value (actuarial value factors include age, tenure and salary) of the defined benefit plans. (D) Nontaxable benefits - generally include health insurance premiums. A memo regarding executive compensation, written by the Chairman of the Sanford Board of Trustees, is on file and available upon request. Compensation paid to the Sanford Board of Trustees is for full-time professional responsibilities as physicians, administrators or employees of the organization. The total compensation paid to Kelby Krabbenhoft of $1,539,421 is comprised of Base Salary of $941,885, Incentive Compensation of $332,500 and Other Taxable Earnings of $265,036. In addition, an amount of $589,623 has been reported for the estimated amount of ratable increase in value of the defined benefit pension plan, defined benefit SERP and a Gift Agreement Management Continuity Retention plan. X 2 30340 Average high/low price X 1 3000001 FMV 1 0 1 0 Method for Determining Number of Contributions: Part I, Column (b): The organization is using 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: Christopher Meeker, Mark Paulson, Richard Hardie, Kelby Krabbenhoft, JoAnn Kunkel, Lisa Carlson and Brian Mortenson. 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 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, creating a 400+ person collective which acts as a team of ambassadors for Sanford in their respective communities. 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 11 The Form 990 is prepared internally by the finance department 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 when 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 The Executive Compensation Committee of the Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm to annually 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 2013. Additionally, Sanford periodically engages an independent compensation consultant to review and issue a report regarding the reasonableness of the total compensation arrangements of all physicians employed by the organization. The most recent study of the physician total compensation was completed in 2009. 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 entity within the Sanford system. In addition, a Board of Directors is established for each entity, which has specific delegated responsibilities from the Trustees related to the oversight of day-to-day operations of that entity. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Change in value of split-interest agreements -4,975. Transfer from related tax-exempt org for payroll and operating expenses 8,398,370. Transfer of closely-held stock to SOB, Inc. -3,000,001. Sanford 801 Broadway Drive Fargo ND 58122 271218956 Supporting Organization ND 501(c)(3) 11-II 0 Sanford Health 1305 West 18th Street Sioux Falls SD 57117 311527032 Supporting Organization SD 501(c)(3) 11-II Sanford 1 Sanford USD Medical Center 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460227855 Hospital SD 501(c)(3) 3 Sanford Health 1 Edith Sanford Breast Cancer Foundation 2301 60th Street N Sioux Falls SD 57104 450404126 Foundation ND 501(c)(3) 11-II Sanford Health 1 Sanford Clinic 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460447693 Clinical Services SD 501(c)(3) 3 Sanford Health 1 Sanford Home Health 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460282134 Home Health Services SD 501(c)(3) 9 Sanford Health 1 Sanford Health Network 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460388596 Hospitals/Clinics SD 501(c)(3) 3 Sanford Health 1 Sanford ResearchUSD 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 460450378 Research SD 501(c)(3) 3 Sanford Health 1 Sanford World Clinics 1305 West 18th Street Sioux Falls SD 57117 262707628 Healthcare SD 501(c)(3) 3 Sanford Health 1 Sanford North PO Box 2010 Fargo ND 58122 450385890 Supporting Organization ND 501(c)(3) 11-II Sanford 1 Sanford Medical Center Fargo PO Box 2010 Fargo ND 58122 450226909 Hospital ND 501(c)(3) 3 Sanford North 1 FM Ambulance Service Inc 2215 18th St South Fargo ND 58103 450344371 EMT ND 501(c)(4) Sanford North 1 Sanford Health Foundation North PO Box 2010 Fargo ND 58122 450398104 Fundraising ND 501(c)(3) 7 Sanford North 1 Sanford Clinic North PO Box 2010 Fargo ND 58122 911770748 Clinics ND 501(c)(3) 9 Sanford North 1 Sanford Health Network North PO Box 2010 Fargo ND 58122 450409348 Hospitals/Clinics ND 501(c)(3) 11-II Sanford North 1 Sanford Hillsboro PO Box 609 Hillsboro ND 58045 450230400 Hospital ND 501(c)(3) 3 Sanford Health Network North 1 Sanford Health Foundation Hillsboro PO Box 609 Hillsboro ND 58045 363542187 Fundraising ND 501(c)(3) 7 Sanford Hillsboro 1 Sanford Medical Center Mayville 42 6th Ave SE Mayville ND 58257 450228899 Hospital ND 501(c)(3) 3 Sanford Health Network North 1 Sanford Medical Center Thief River Falls 120 Labree Ave S Thief River Falls MN 56701 410709579 Hospital MN 501(c)(3) 3 Sanford Health Network North 1 MeritCare Minnesota 1720 South Highway 59 Thief River Falls MN 56701 261530302 Promotion of health MN 501(c)(3) 3 Sanford North 1 Sanford Medical Center Wheaton 401 12th Street North Wheaton MN 56296 272042143 Hospital/Clinic MN 501(c)(3) 3 Sanford Health Network North 1 Sanford Health of Northern Minnesota 1300 Anne St NW Bemidji MN 56601 411266009 Hospital MN 501(c)(3) 3 Sanford North 1 Sanford Health Foundation of Northern Minnesota 1300 Anne St NW Bemidji MN 56601 411389317 Fundraising - Support MN 501(c)(3) 11-II Sanford Health of Northern Minnesota 1 Baker Park Inc 803 Dewey Ave NW Bemidji MN 56601 411372480 Low Income Senior Housing MN 501(c)(3) 9 Sanford Health of Northern Minnesota 1 North Country Medical Clinic 1300 Anne St NW Bemidji MN 56601 411753855 Family Practice Medical Clinic MN 501(c)(3) 3 Sanford Health of Northern Minnesota 1 Sanford West 300 North 7th Street Bismarck ND 58501 450397195 Supporting Organization ND 501(c)(3) 11-II Sanford 1 Sanford Bismarck 300 North 7th Street Bismarck ND 58501 450226700 Hospital ND 501(c)(3) 3 Sanford West 1 Sanford Living Centers 1000 18th Street NW Suite 1 Bismarck ND 58554 450416454 Long-term Care Facility ND 501(c)(3) 9 Sanford Bismarck 1 Sanford West Foundation 300 North 7th Street Bismarck ND 58501 450397196 Fundraising ND 501(c)(3) 7 Sanford Bismarck 1 Medcenter One Inc Auxiliary 300 North 7th Street Bismarck ND 58501 237293043 Supporting Organization ND 501(c)(3) 11-I Sanford Bismarck 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 Shetek Medical Services LLC 251 5th Street East Tracy MN 56175 412004685 Home Health Services MN N/A Southwest MN Radiation Center LLC 1018 6th Avenue Worthington MN 56187 460447693 Radiation Services MN 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 Bemidji Medical Equipment Inc 1300 Anne Street NW Bemidji MN 56601 411551725 Retail Sales of DME MN N/A C 1 North Country Management Inc 1300 Anne Street NW Bemidji MN 56601 411820025 Management Services MN N/A C 1 Sanford Frontiers 1305 W 18th Street PO Box 5039 Sioux Falls SD 571175039 455436599 Weight Loss Management 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 -542304 2820725 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 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 Sanford USD Medical Center B 33025976 Cash Method Edith Sanford Breast Cancer Foundation B 6159531 Cash Method SOB Inc R 3000001 FMV