Legal Question in Tax Law in Illinois

Re: Doctors Making Contributions to Funds they control

You say you work for a hospital organization and "we" have funds controlled by certain physicians. Do you mean that these are separate accounts in a fund that is in the name of the organization? If so, there are clearly Federal tax rules that must be followed, as well as charitable trust rules in Illinois.

If these funds are separate from your organization and your organization only receives a benefit from the funds if and when a physician so determines, then these would seem not to be your funds at all. Your organization would then seem to be only a recipient of the funds and would have no different obligations for those funds prior to receiving them than it has for any other donors.

David Staub, Illinois business lawyer