How a Not-for-Profit Organization Determines Community Benefit

The Commonwealth of Pennsylvania defines what constitutes a purely public charity with a regulation called Act 55, the Institutions of Purely Public Charity Act. It sets specific criteria for what constitutes a charitable organization, defines the uncompensated goods and services that qualify as community benefit, and prescribes how these goods and services are measured.

The not-for-profit entities of Lehigh Valley Hospital and Health Network qualify as charitable organizations. They fulfill the criteria of Act 55 and have done so consistently since the act went into effect in 1997.