Better Business Bureau Report for
Norton Healthcare Foundation

Better Business Bureau Report issued November 2014
Better Business Bureau Report expires November 2016


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Norton Healthcare Foundation
Address: 234 E. Gray Street, Suite 450
  Louisville, KY 40202
Phone: 502-629-8060
800-444-2523
Web Address: www.nortonhealthcare.com
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Better Business Bureau Comments

Year, State Incorporated: 1977, Kentucky
Affiliates: None
Stated Purpose: Norton Healthcare Foundation is the philanthropic arm of Norton Healthcare, Inc., representing the acute care hospitals that primarily serve adults and their newborn children. The Foundation's sole purpose is to raise funds and generate volunteer support for the hospitals’ vital programs and services.

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Evaluation Conclusions

              

Norton Healthcare Foundation does not meet the following Standard for Charity Accountability.

Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

Financial statements do not inlcude a detailed statement of functional expenses.

The Norton Healthcare Foundation was provided an opportunity to respond to the compliance issue and responded as follows: The Statement of Functional Expenses is only required by generally accepted accounting principles (GAAP) for Not for Profit Organizations which are Voluntary Health and Welfare Organizations (such as the Red Cross or United Way). This statement is not required by GAAP for the Norton Healthcare Foundation. Adding this statement would add complexity to our accounting and reporting processes and increase external audit procedures, which would increase Foundation expenses. It is in the best interest of the organization and our donors to avoid unnecessary operating costs.

Norton Healthcare Foundation meets the remaining 19 Standards for Charity Accountability.
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Programs

              

The Norton Healthcare Foundation supports the work and mission of the following hospitals to ensure that equipment, facilities, programs, services, and educational initiatives continue to keep pace with community health care needs: Norton Hospital; Norton Audubon Hospital; Norton Women's and Kosair Children's Hospital; and Norton Brownsboro Hospital. Norton Healthcare Foundation is committed to continually strengthening its partnership with the adult hospitals of the Norton Healthcare system. Through an effective process of raising funds and friends, the foundation will grow in its commitment to serve and achieve increasing philanthropic support in order to enhance patient care. The Foundation relies on the generosity of others to ensure that the adult hospitals of Norton Healthcare have the equipment, facilities, and programs that make a difference in the care provided to its patients.

For the fiscal year ended December 31, 2013, Norton Healthcare Foundation's program expenses were:

  
Programs 1,823,290
Capital Projects 1,683,782
Financial Assistance 33,250
Total Program Expenses: $3,540,322
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Governance

              

Chief Executive : Lynnie Meyer, Chief Development Officer
Compensation*: 

Chair of the Board: Krista Ward
Chair's Profession / Business Affiliation: Director of Financial Systems Development, Kindred Healthcare, Inc.

Board Size: 26

Paid Staff Size: 9

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Fund Raising

              

Method(s) Used:

Methods of fund raising include direct mail, invitations to fund raising events, print advertisements, television, radio, grant proposals, internet, and planned giving arrangements.
Fund raising costs were 8% of related contributions. (Related contributions, which totaled $6,751,431, are donations received as a result of fund raising activities.)

Each dollar spent on fund raising generated $13.11 in contribution revenue.

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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on Norton Healthcare Foundation's audited financial statements for the fiscal year ended December 31, 2013.

Ending net assets as reported below include $1,519,691 in unrestricted net assets, $30,952,942 in temporarily restricted net assets, and $17,096,165 in permanently restricted net assets.

Source of Funds  
Donations & Gifts 6,292,505
Investment Income 3,309,316
Change in Value of Outside Trusts 720,608
Gift Shop Revenue 496,320
Bequests 458,926
Total Income $11,277,675


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Uses of Funds as a % of Total Expenses

Programs: 77%  Fund Raising: 11%  Administrative: 5%  Other Expenses: 7%

Total income $11,277,675
Program expenses $3,540,322
Fund raising expenses 514,896
Administrative expenses 216,102
Other Expenses 322,994
Total expenses $4,594,314
Income in Excess of Expenses 6,683,361
Beginning net assets 42,885,437
Ending net assets 49,568,798
Total liabilities 2,264,740
Total assets $51,833,538


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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

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