§ 40-18-555 — Use of Qualified Donations; Solicitation and Management of Donations; Report Requirements

Alabama § 40-18-555

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 18: Income Taxes
• Art. 29: Rural Hospital Investment Program

Text

(a) An eligible rural hospital shall only use qualified donations for the purpose of providing health care to the residents of the area that the rural hospital serves, which may include operational expenditures and expenditures for maintenance, capital upgrades, and improvements.
(b) An eligible rural hospital may retain a person, a third party, or an organization to solicit or manage the qualified donations the rural hospital receives for a percentage fee of the qualified donations solicited or managed, but total fees shall not exceed five percent of the total amount of qualified donations received during a calendar year.
(c) Any third party that participates in soliciting, advertising, or managing donations shall provide the complete list of eligible rural hospitals as published by the department to any potential donor regardless of whether a third party has a relationship or agreement with an eligible rural hospital.
(d) Starting in March of tax year 2027, an eligible rural hospital shall file a report with the board, on a form to be provided by the board which shall include all of the following information:
(1) A schedule of each qualifying donation received during the preceding tax year, which includes the amount, identifies the qualified donors, and describes how the qualified donation was or is planned to be spent.
(2) A schedule of payments made to any person, third party, or organization during the preceding tax year for the purpose of soliciting or managing the qualified donations received.
(e) An eligible rural hospital shall report all donations received to the department within 30 days of the receipt of that donation.

Legislative History

(Act 2025-404, §6.)