2013-05-15T08:14:32-05:00 2012-06-30 861065772 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2011-07-01 363297853 Sanford Health Foundation SANF 6053285700 101 S Reid Street No 202 Sioux Falls SD 57103 JoAnn Kunkel 6053331000 2013-05-15 1 Kristina Rasmussen P00143920 6123974000 2011 2016-02-25 16:41:14Z X Brian Mortenson 101 S Reid Street No 202 Sioux Falls SD 57103 115991499 0 X www.sanfordhealthfoundation.org X 1983 SD Sanford Health Foundation's purpose is to encourage and assist Sanford Health in its activities. 16 7 0 484 0 0 103369402 12791742 0 0 25935262 28384646 14169 18186 129318833 41194574 31843515 37743515 0 0 1665962 1828105 0 0 1807706 1054329 1347755 34563806 40919375 94755027 275199 589943671 613301855 7320245 6592845 582623426 606709010 Sanford Health Foundation was incorporated for the purpose of encouraging and assisting Sanford Health in its activities and to encourage and assist other exempt entities associated with Sanford Health in providing health care, medical, or educational services. 0 0 5507816 5507816 The Foundation continues its proud tradition of supporting the programs, services and operations of Sanford Health as it continues its growth regionally, nationally and internationally. Specifically, grants helped provide patient care and family support ($1,695,030), equipment and renovation projects ($3,773,058) and other internal programs ($39,728). 250981 250981 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 are receiving the very best, and latest, in care. 31984718 31984718 Grants continually help support the Sanford Initiatives. These special project areas include: Investment in Children-to develop services and facilities and recruit physicians specifically focused on children; Sanford Research-to allow significant growth in all areas of Sanford Research and creation of the Sanford Children's Health Research Center; and the Sanford Project-the research effort to cure type 1 diabetes. Grants have also helped support additional initiatives including the FIT initiative and the breast cancer initiative. Additionally, a grant was made to the Burnham research project, another collaboration effort of Sanford Health. 37743515 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 16 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 Pamela Anderson 0.50 X 0 0 0 Terry D Baloun 0.50 X 0 0 0 David Beito 0.50 X 0 0 0 Mikal L Claar 0.50 X 0 0 0 Jim Entenman 0.50 X 0 0 0 Barbara M Everist 0.50 X 0 0 0 Jerome D Feder 0.50 X 0 0 0 Terrence Grimm MD 60.00 X 0 557673 26124 Richard D Hardie MD 60.00 X 0 566503 24244 Thomas C Hruby 0.50 X 0 0 0 John C Jambois 0.50 X 0 0 0 Kelby K Krabbenhoft 60.00 X X 0 1484297 21738 Kelby K Krabbenhoft Def Comp 60.00 X X 0 0 565035 Barry L Martin 0.50 X 0 0 0 Lauris Molbert 0.50 X 0 0 0 Ronald M Moquist 0.50 X 0 0 0 Don Morton 0.50 X 0 0 0 Michael L Olson MD 60.00 X 0 572221 6711 Michael L Olson MD Def Comp 60.00 X 0 0 49282 Mark Paulson MD 60.00 X 0 268151 30760 Barbara J Stork 0.50 X 0 0 0 Brent Teiken 0.50 X 0 0 0 John VanderWoude Jr MD 60.00 X 0 1183385 28640 Lisa Carlson 60.00 X 0 717737 31290 Brian Mortenson 60.00 X 361974 0 25594 Deborah Koski 60.00 X 145704 0 28053 Brian Bonde 60.00 X 146580 0 22190 Marlin Van Peursem 60.00 X 103332 0 22258 757590 5349967 881919 4 0 1 0 Best Western Ramkota Hotel 3200 W Maple Street Sioux Falls SD 57107 Event Vendor 201442 Coyne Public Relations 5 Wood Hollow Road Parsippany NJ 55352 Public Relations 129360 2 654821 10307 12126614 256600 12791742 25299026 25299026 77283708 74198088 3085620 3085620 3085620 602815 654821 598837 3978 3978 Other Operating Rev 525990 13627 13627 Donor CSV Adj 525990 581 581 14208 41194574 0 0 28402832 37743515 37743515 341844 341844 1149886 616131 533755 42630 26383 16247 204542 120681 83861 89203 51316 37887 10177 10177 649968 42610 607358 1335 1335 209277 11642 197635 7738 6360 1378 83366 83366 96839 4023 92816 18204 1571 16633 39535 39535 4729 4729 Professional Dues 86241 505 85736 Donor Stewardship 74225 74225 Fundraising Materials 42689 42689 Uncollectible Pledges 16151 16151 7281 7281 40919375 37743515 1368154 1807706 184162 253115 31509339 17524725 164429 53759 334868 187220 297586 147648 557136666 594531542 651489 791066 589943671 613301855 117413 35553 993300 15495 5467873 5835568 741659 706229 7320245 6592845 X 412369910 442906843 141003027 132916918 29250489 30885249 582623426 606709010 589943671 613301855 X 275199 23810385 X 0 1 1 X 0 X X X 0 0 0 Sanford USD Medical Center 460227855 3 1 35505599 1 35505599 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 29250489 1604392 30368 30885249 26563483 2527154 159852 29250489 23816626 2689481 57376 26563483 23464847 323063 33882 5166 23816626 1.00000 0 0 33857 6037 27820 301011 181183 119828 147648 Annuities payable 706229 706229 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 fund's 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: 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, 2012; however, some related organizations have established reserves. Children's Gala 1177462 581382 596080 201062 7526 387492 Half Marathon 29195 29195 5 50979 44244 6735 2757 1257636 654821 602815 201062 7526 390249 598837 3978 1 Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 501(c)(3) 35505599 See Form 990, Page 2, Part III Edith Sanford Breast Cancer Foundation 101 S Reid Street Sioux Falls SD 57103 450404126 501(c)(3) 2237916 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 Terrence Grimm MD 0 500004 0 0 0 57669 0 12250 0 13874 0 583797 0 0 Richard D Hardie MD 0 562511 0 0 0 3992 0 7350 0 16894 0 590747 0 0 Kelby K Krabbenhoft 0 913461 0 0 0 570836 0 0 0 21738 0 1506035 0 0 Kelby K Krabbenhoft Def Comp 0 0 0 0 0 0 0 565035 0 0 0 565035 0 0 Michael L Olson MD 0 563933 0 0 0 8288 0 0 0 6711 0 578932 0 0 Michael L Olson MD Def Comp 0 0 0 0 0 0 0 49282 0 0 0 49282 0 0 Mark Paulson MD 0 236419 0 0 0 31732 0 12250 0 18510 0 298911 0 0 John VanderWoude Jr MD 0 1000000 0 0 0 183385 0 4900 0 23740 0 1212025 0 0 Lisa Carlson 0 500321 0 0 0 217416 0 12250 0 19040 0 749027 0 0 Brian Mortenson 256231 0 0 0 105743 0 7350 0 18244 0 387568 0 0 0 Deborah Koski 138316 0 0 0 7388 0 4158 0 23895 0 173757 0 0 0 Brian Bonde 129823 0 0 0 16757 0 2104 0 20086 0 168770 0 0 0 Part I, Line 1a Certain items listed on Line 1a are provided by related organizations. Part I, Line 3: Sanford's Trustees directly engage a nationally recognized independent compensation consulting firm to annually review the total compensation of arrangements of the officers of the organization, and to report findings and recommendations to them for deliberation and action. The most recent study was completed in 2012. 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 $418,302 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 revenues less expenses. Physicians listed that were paid on this model include: Dr. Richard Hardie, Dr. Michael Olson. Part I, Line 7 Certain executives 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 Sanford's Trustees, is on file and available upon request. Compensation paid to Sanford's Trustees is for full-time professional responsibilities as physicians, administrators or employees of the organization. The total compensation paid to Kelby Krabbenhoft of $1,484,297 is comprised of Base Salary of $913,461 and Other Taxable Earnings of $570,836. In addition, an amount of $565,035 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. X 1 97750 Average high/low price X 1 158850 FMV of CRUT 0 0 1 0 Method for Determining Number of Contributors: Part I, Column (b): The organization is using the number of contributors method. Form 990, Part VI, Section A, line 2 Lisa Carlson and Pamela Anderson have a business relationship. 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: Dr. Terrence Grimm, Dr. Richard Hardie, Kelby Krabbenhoft, Dr. Michael Olson, Dr. Mark Paulson, Dr. John VanderWoude, Jr., Lisa Carlson, Brian Mortenson, Deborah Koski, Brian Bonde, Marlin VanPeursem. Form 990, Part VI, Section A, line 6 Sanford is governed by a Board of Trustees that has ultimate strategic and decision making authority. Sanford's Trustees 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 Sanford's Trustees. These Boards function much like committees in a traditional corporate structure. Sanford's Trustees then acts 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 Sanford's Trustees appoints the board members for the Board of Directors of Sanford Health Foundation. Form 990, Part VI, Section A, line 7b Sanford's Trustees approve 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 prior to filing and prepares return highlights and key disclosures for the Audit Committee prior to the return filing date. Before the return is filed, a complete copy is made available to the current 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 Sanford's 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 its 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 such. Form 990, Part VI, Section B, line 15 Sanford's Trustees directly engages a nationally recognized independent compensation consulting firm to annually review the total compensation arrangements of the officers and operating unit executives of the organization, including the CEO, and to report the findings and recommendations to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford's Trustees. The most recent study was completed in 2012. 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 physician total compensation arrangements 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, Section A: Sanford's Trustees provide services to Sanford and its subsidiaries. Hours reported for each individual reflect the time spent on work related to either the filing organization or a related organization. Sanford's 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 5: Net unrealized gains on investments: 16,912,038. Change in value of split-interest agreements -155,075. Transfers from related tax-exempt organization 7,053,422. Total to Form 990, Part XI, Line 5: 23,810,385. Sanford Health 1305 W 18th Street Sioux Falls SD 57117 311527032 Supporting Organization SD 501(c)(3) 11-II Sanford 1 Sanford ResearchUSD 1305 W 18th Street Sioux Falls SD 57117 460450378 Research SD 501(c)(3) 3 Sanford Health 1 Sanford USD Medical Center 1305 W 18th Street Sioux Falls SD 57117 460227855 Hospital SD 501(c)(3) 3 Sanford Health 1 Sanford Clinic 1305 W 18th Street Sioux Falls SD 57117 460447693 Clinical Services SD 501(c)(3) 3 Sanford Health 1 Sanford Health Network 1305 W 18th Street Sioux Falls SD 57117 460388596 Hospitals/Clinics SD 501(c)(3) 11-II Sanford Health 1 Sanford Home Health 1305 W 18th Street Sioux Falls SD 57117 460282134 Home Health Services SD 501(c)(3) 9 Sanford Health 1 Sanford 801 Broadway Drive Fargo ND 58122 271218956 Supporting Organization ND 501(c)(3) 11-II N/A 0 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 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 Health Foundation North PO Box 2010 Fargo ND 58122 450398104 Fundraising ND 501(c)(3) 7 Sanford North 1 Sanford Medical Center Wheaton 401 12th Street N Wheaton MN 56296 272042143 Hospital/Clinic MN 501(c)(3) 3 Sanford North 1 Sanford Medical Center Thief River Falls 120 Labree Ave S Thief River Falls ND 56701 410709579 Hospital MN 501(c)(3) 3 Sanford North 1 Sanford Medical Center Mayville 42 6th Avenue SE Mayville ND 58257 450228899 Hospital ND 501(c)(3) 3 Sanford 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 Agassiz Assurance Company 100 Bank Street Suite 610 Burlington VT 05401 743121855 Insurance VT 501(c)(3) 11-II Sanford North 1 MeritCare Health Enterprises Inc 201 5th Street N 14th Floor Fargo ND 58102 453788040 Prescription Drugs PA 501(c)(4) Sanford North 1 MeritCare Health Enterprises Inc PO Box 2010 Fargo ND 58122 450359785 Prescription Drugs ND 501(c)(4) Sanford North 1 FM Ambulance Service Inc 2215 18th Street S Fargo ND 58103 450344371 EMT ND 501(c)(4) Sanford North 1 Sanford Health of Northern Minnesota 1300 Anne Street NW Bemidji MN 56601 411266009 Hospital MN 501(c)(3) 3 Sanford North 1 Baker Park Inc 803 Dewey Avenue NW Bemidji MN 56601 411372480 Low Income Senior Housing MN 501(c)(3) 9 Sanford Health of Northern Minnesota 1 Sanford Health Foundation of Northern Minnesota 1300 Anne Street NW Bemidji MN 56601 411389317 Supporting Organization MN 501(c)(3) 11-II Sanford Health of Northern Minnesota 1 North Country Medical Clinic 1300 Anne Street NW Bemidji MN 56601 411753855 Family Practice Medical Clinic MN 501(c)(3) 3 Sanford Health of Northern Minnesota 1 Sanford World Clinics 1305 W 18th Street Sioux Falls SD 57117 262707628 Healthcare SD 501(c)(3) 3 Sanford Health 1 Edith Sanford Breast Cancer Foundation 101 S Reid Street Sioux Falls SD 57103 450404126 Supporting Organization ND 501(c)(3) 11-II Sanford Health 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 Sanford Health Plan 300 Cherapa Place Sioux Falls SD 57103 911842494 Insurance SD N/A C Sanford Health Plan of MN 300 Cherapa Place Sioux Falls SD 57103 460445852 Insurance MN N/A C Bemidji Medical Equipment Inc 1300 Anne Street NW Bemidji MN 56601 411551725 Retail Sales of DME MN N/A C North Country Management Inc 1300 Anne Street NW Bemidji MN 56601 411820025 Management Services MN N/A C Sanford Frontiers 1305 W 18th Street Sioux Falls SD 57117 455436599 Weight Loss Management SD N/A C 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sanford USD Medical Center B 35505599 Cash Method Edith Sanford Breast Cancer Foundation B 2237916 Cash Method