Could your good intentions get misconstrued as kickbacks? Find out "A business relationship between a donor and a donee does not make a tax-deductible donation automatically suspect under the anti-kickback statute," the OIG says in the opinion.
Donating to tax-exempt organizations with which you have an ongoing business relationship could prove to be a tricky arrangement. But new tips from the HHS Office of Inspector General could help you steer clear of the pitfalls.
In a Dec. 29 Advisory Opinion (No. 04-18), a health system asks if a donation from its affiliated charitable foundation to the only inpatient hospice in town will break anti-kickback rules. The new hospice, which will furnish inpatient and outpatient care to the homeless, among other patients, may refer some patients to the health system's hospital - also the only one in town - for items or services.
Three elements likely will keep this arrangement from violating anti-kickback statutes, the OIG says:
To read more, go to www.oig.hhs.gov/fraud/advisoryopinions/opinions.html.