In today’s challenging health care environment, Charitable Patient Assistance Programs (Charitable PAPs) have emerged to meet the needs of the nearly 30 million Americans that are underinsured and have difficulty paying out-of-pocket medical costs. As potential donors make strategic decisions to invest in Charitable PAPs, there are many elements which must be considered to ensure compliance with all applicable laws and regulations.

Charitable PAPs and other not-for-profit foundations are restricted in the activities in which they may engage. For-profit activities can take many forms, and it is important for donating organizations to carefully assess Charitable PAPs that may be engaged in for-profit activity.