Spine Centers: Use of a Nonprofit Organization

Use of a Nonprofit Organization
In some instances, the creation of a nonprofit 501c(3) public charity as an adjunct to the Spine Center is an excellent complementary organization to sponsor medical, public and patient education programs, care for the underprivileged and research. It can also be used as a vehicle for funding and supporting Phase 1 and 2 Clinical Trials as an alternative to a CRO. Patient advocacy groups can also be organized under the umbrella of the center concurrently with regional outreach programs for the community and adjoining areas.

The following represents a general layout for the development of a nonprofit medical charitable foundation.

Mission Statement:

  • To sponsor public, medical and patient education programs to increase awareness of spinal disease treatment modalities, specialty centers of excellence, including minimally invasive technology, and postgraduate training programs and opportunities.

  • To support clinical and basic science research, including Phase 1 and 2 Clinical Trials, for minimally invasive and complex spine procedures.

  • To offer financial aid to patients and their families afflicted with spinal disorders and conditions.

  • To establish an algorithmic interactive data base and telemedicine network to link clinical sites with surgical experts throughout the country for utilization review, quality assurance and continuing medical education.

Allocation of Funds
Donations may be solicited from public, corporate, private and government sectors. Administrative costs for the organization should not exceed 20%; the remaining 80% should be distributed to the organization’s philanthropic mission and programs.

The distribution of funds over and above administrative costs is suggested as follows:

  • Patient assistance 25%
  • Public awareness and education 20%
  • Clinical research 35%
  • Medical education 20% (postgraduate spine fellowship and training program)

Updated on: 12/09/09
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