Health Conversion Foundations
Health Conversion Foundations
July 28, 2010
One of the biggest trends in health philanthropy in recent years is the development of nearly 200 health conversion foundations. These foundations are established when a nonprofit hospital or health care organization converts to for-profit status, usually because of a merger or acquisition. By law, all of the proceeds from the sale of tax-exempt entities must be directed to charitable purposes. The first health conversion foundation was established in 1973. Since that time, nearly 200 others have been set up, driving the largest transfer of charitable assets in history. Many of these foundations have very significant endowments.
Most health conversion foundations focus on improving health within certain geographic areas. Many define health relatively broadly, and often fund health promotion and disease prevention efforts. Some focus on specific populations or health issues.
A list of health conversion foundations, along with a brief description of the focus area of each, is available online from Grantmakers in Health (see document entitled “A Profile of Foundations Created from Health Care Conversions”).
