Local communities are paying closer attention to their tax bases. Some are asking their non-profit
providers to make available a closer accounting of their community benefit. Federal politicians are paying
attention to the issue and several measures have been presented before Congress. One may reasonably
anticipate that interest in this issue will increase in the future. Actuaries are well positioned to help nonprofit
providers plan, report and evaluate community benefit programs, and ideally would be involved in all
stages of the process.
Planning for community benefit programs should be as serious and visible as planning for any other
strategic initiative for a non-profit institution. Defining community benefit and developing standard
approaches to accounting and reporting are essential to the effectiveness of these programs. Using
standardized principles and policies helps organizations account and budget for community benefits and
tell the community benefit story. Finally, evaluating community benefit programs by establishing specific
objectives, measuring effectiveness, and making warranted adjustments is fundamental to managing
effective community benefit programs.