More and more, studies are recognizing the positive benefits of environmental improvements to communities. Now, potential changes to IRS non-profit reporting rules would allow nonprofit hospitals to report the cost of the environmental improvements they make. IRS Schedule H is a mandatory reporting form introduced by the IRS in 2008. Its purpose is to quantify, in a way that is comparable across institutions, how nonprofit hospitals meet their community benefit obligations and therefore document their tax-exempt status. Schedule H requires hospitals to report on total community benefit and charity care expenses as well as proportion of total institutional spending on these categories. Changes to the reporting rules, released in draft form on December 15, 2011, will allow hospitals to report on costs associated with their community-building activities, such as activities to read more…