Potential Pitfalls of Alternative Revenue Strategies

Due to increasing financial pressures, many nonprofit health care organizations are looking for alternative ways to generate revenue, such as leasing vacant space in buildings, entering into management contracts, or selling unrelated services. Prior to committing to an alternative revenue strategy, such as those listed above, the organization must carefully consider the various tax and, where applicable, bond/private use  implications of such a transaction. For a discussion of these issues, see our latest issue of Perspectives, available here ——> Perspectives,  November 2011.

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