Form St 04-20 - Recommendation For Disposition Page 9

ADVERTISEMENT

private individuals. Based on the evidence presented, I am unable to conclude that ABC
is not providing gain or profit in a private sense to officers and employees connected with
the organization.
As stated previously, ABC estimated the value of its charitable contributions in
2003 as $1,169,579. Testimony about ABC’s contributions was unclear and misleading.
For example, Dr. John Doe testified that he spends about two hours per week consulting
on transfusion issues with technical staff at hospitals and with patient’s physicians. “We
don’t have a charge for that.”
Tr. pp. 45-46.
He also testified that he spends
approximately six hours teaching about transfusion services to pathology residents and
post-graduate medical staff. Tr. pp. 48-49. ABC dos not charge for this. Tr. p. 50. “No
participant at any of the educational services pays a fee, and no patient having difficult
blood related issues pays a fee for consulting with Dr. John Doe.” The cost of these
educational programs was estimated to be $459,114, which is 39% of the $1,169,579 in
total contributions estimated by ABC for 2003. The $459,114, which ABC refers to as
“uncompensated services” was calculated “by multiplying the compensation paid to the
employees providing the educational and consultative services by the percentage of their
time spent providing the educational and consultative service.” Dept. Ex. No. 3.
The problem with this testimony is that Dr. John Doe is not employed by ABC.
On direct examination, Dr. John Doe was asked his position. He responded: “I am the
medical director for the XYZ Blood Services.” Tr. p. 44.
On cross-examination, Dr.
John Doe was asked who he was employed by and he stated that that he was “employed
by XYZ Blood Services.” Tr. p. 53.
Q. So any free services that are going to be provided for you
will come out of XYZ since they are paying your
9

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Legal