Company
501e Non-Profit Corporation
SISU Medical Systems is classified as a 501e non-profit corporation. By IRS definition, a 501e designation is:
"A multiple member corporation that, if the activity involved were permitted if undertaken independently by a member organization, can provide that service on a collective basis to achieve cost savings and enjoy tax exempt status...
...Must be organized and operated solely to perform on a centralized basis one or more qualifying services, which if performed on its own by a qualifying 501c(3) organization, would constitute an activity in exercising or performing the purpose or function constituting the basis for its exemption."
These are the IRS requirements for qualifying as an eligible member of a 501e organization:
- Must Be A Hospital
- 501c(3) Organization
- Component Parts of 501c(3) Organizations
- (or) Governmental Entities
Qualifying services that a 501e organization can collaborate on include:
- Data Processing
- Purchasing, including insurance on a group basis
- Warehousing
- Billing and Collections
- Food
- Clinical
- Industrial and Biomedical Engineering
- Laboratory
- Printing
- Communications
- Record Center
- Personnel
These are the IRS operating rules for a 501e corporation:
- Must Operate On A Cooperative Basis
- Must Distribute Net Earnings On A Patronage Basis
- Distributions Can Be In Cash Or As A Credit To Member Retained Earnings Accounts
- Retained Earnings Accumulations Must Be Reasonable
- Balance In Retained Earnings Distributed Upon Dissolution