MedtronicSofamorDanek.com - Charitable Contributions Home


	Career Opportunities


	Company Information - Our Mission - Minimal Access Spinal Technologies - eBusiness

	Newsroom - News Releases - Media Kits

	Sponsorships - Charitable Contributions Glossary of Terms Community-Based Educational Activity Fellowship Fundraiser Event Monetary Product - Third Party Meetings Glossary of Terms Meeting Support Scholarships

Additional Charitable Contribution Information at Compliance on MSD's MySpineTools Website
This information about Medtronic Sofamor Danek's (MSD) Charitable Contribution Program is being provided at its www.MedtronicSofamorDanek.com website so it can be accessed by anyone who may be interested in requesting a charitable contribution from MSD.

MSD also maintains a www.MySpineTools.com website for its Customers, sales representatives and other employees that has additional information about MSD's Charitable Contributions Program. MySpineTools.com requires a user ID and password - which are only granted to Customers, sales representatives and employees. Throughout this website, we identify additional information that is available to anyone with MySpineTools.com access.

MSD sales representatives and other employees should go to Rep/Employee Information and Tools at Compliance on MySpineTools.com for additional information relevant to them about MSD's Charitable Contributions Program.

Glossary of Terms
Defined words and terms are used throughout this website and the documents you can access and download from this website. Go to Glossary of Terms for the definitions.

MSD's Charitable Contribution Program Policies
The policies listed and available below govern MSD's Charitable Contributions Program. All charitable contributions must satisfy the requirements listed in the Customer-Based Charitable Contributions Policy and the additional requirements included in the policy for that particular type of contribution. For example, a fundraiser event request must satisfy the requirements in both the Customer-Based Charitable Contributions and Fundraiser Event Charitable Contributions Policies.

Charitable Contributions Manager
Charitable Contribution Committees
Customer-Based Charitable Contributions
Documentation and Filing
Educational Activity Charitable Contributions
Fellowship Charitable Contributions
Fundraiser Event Charitable Contributions
Notification, Agreements, and Transmittal Letters
Product Charitable Contributions
Request Forms for Customer-Based Charitable Contributions

General Background Information About MSD's Charitable Contributions
Pursuant to Business Conduct Standard #3, Medtronic Sofamor Danek may make charitable contributions that:

Benefit society and promote better health care;
Demonstrate good corporate citizenship; or
Serve a genuine educational function.

In most cases, contributions will only be made to tax-exempt charities. In rare instances, such as a genuine charitable mission to provide health care to indigent patients, MSD may make charitable contributions of products even if there is no tax-exempt charitable organization involved.

MSD has established two categories of charitable contributions, which are discussed in more detail below.

Community-Based Charitable Contributions
Customer Based Charitable Contributions

Requesting a Charitable Contribution from MSD
If you want to request that MSD make a charitable contribution to:

Your tax-exempt charity,
A tax-exempt charity you want to encourage MSD to support, or
For a non-tax-exempt charitable purpose,

use the menu on the left and select the type of contribution request that is most applicable to you.

Please note, these request forms are periodically revised. Always use the forms currently available on this website and do not use versions of the forms that you may have previously downloaded. By using the most current form, you will avoid delays in MSD's review of your request.

Requesting a Charitable Contribution from Another Medtronic Business Unit

If you want a charitable contribution from another Medtronic business unit, such as Cardiac Rhythm Management or Neuro, including free products for a charitable mission, you will need to contact that Medtronic business unit. MSD's Charitable Contributions Manager can help you identify how to request a charitable contribution from another Medtronic business unit.

Community-Based Charitable Contributions
These are contributions to charitable organizations that operate within the metropolitan areas in which MSD maintains offices and facilities and are not in any way affiliated with MSD's Customers. The goal of such contributions is to help and improve the communities in which MSD and its employees reside.

Typical types of community charitable organizations that are considered for charitable contributions include:

Local boy scout and girl scout organizations
Social Services
Health-related Programs
Educational Programs
Food banks
Schools
Community resources for the disabled
Habitat for Humanity

The Community-Based Charitable Contribution guidelines prohibit financial support for fund-raising events such as walk-a-thons, golf tournaments, competitive sports events, and banquets.

Each metropolitan area in which MSD maintains a facility and employees has a local Community-Based Charitable Contributions committee that is responsible for reviewing and deciding on contribution requests for their community. Each committee is responsible for developing its own guidelines for such contributions.

The guidelines for Community-Based Charitable Contributions in the Memphis metropolitan area are stated on the Community-Based Charitable Contribution section that is available by selecting "Community-Based" from the menu on the left.

If a Customer requests a contribution for a community-based charitable organization or is closely affiliated with a community-based charitable organization requesting a contribution, such as a member of the Board of Directors, the request is considered and will be treated as a Customer-Based Charitable Contribution request.

Customer-Based Charitable Contributions
MSD also supports legitimate and bona fide charitable activities for and by its current and potential Customers. Many of MSD's Customers are tax-exempt charitable organizations. The most common types of Customer-Based Charitable Contributions that MSD makes are for:

Educational activities
Fellowship at academic institutions and medical schools
Fundraiser events
Products for indigent patients and foreign charitable missions

MSD also makes monetary contributions for activities that do not fall within one of the above categories.

MSD may not make a charitable contribution that implicitly or explicitly rewards a Customer for past or future purchases, uses, orders, or recommendations of MSD products. Any such contribution violates Business Conduct Standard #3 and may violate state and federal anti-kickback laws.

Important Message for Customers
It is the federal government's position that any connection between charitable contributions and past or future sales is an illegal kickback. Please do not tell or otherwise indicate to any MSD representative that your use, purchase, or recommendation of MSD products is contingent upon MSD making a charitable contribution. Any such indication from you means that MSD may be prohibited from making the charitable contribution - even if the request satisfies MSD's charitable contribution guidelines and would otherwise be granted. Please help us all comply and avoid government law enforcement by not trying to connect your charitable contribution request with your past or future business with MSD.

Because of the strict requirements of Medtronic's U.S. Business Conduct Standard #3 and the anti-kickback laws, MSD treats any request that it knows is from a current or potential Customer or for an organization in which a Customer is actively involved - e.g., as a board member - as a Customer-Based Charitable Contribution, even if the charitable organization that will benefit from the contribution is not a Customer and would otherwise be considered a Community-Based Charitable Contribution.

Customer-Based Charitable Contribution Criteria
MSD's Customer-Based Charitable Contributions Policy establishes the following as the criteria that will apply to all decisions to grant or deny a Customer-Based Charitable Contribution:

Will benefit society and promote better health care; demonstrate good corporate citizenship; and/or serve a genuine educational function.
Except as provided in MSD's Product Charitable Contribution Policy with respect to charitable missions or indigent patients or otherwise approved by MSD's Vice President and Senior Legal Counsel, the recipient is a tax-exempt charitable organization.
Based on the information provided, the MSD Contribution Committee determines that the recipient is qualified and a good choice to conduct the proposed charitable activity.
Consistent with MSD's Annual Charitable Contribution Plan.
Directly or indirectly supports activities related to spinal trauma, deformity or degeneration or associated neurological disease states and medical conditions.
Does not pay for operating expenses or capital improvements or acquisitions, such as building, renovating or equipping a recipient's facilities . This criterion does not prohibit:
1. Sponsoring a fundraiser when the proceeds are designated for operating expenses or capital improvements or acquisitions.
2. Donating MSD equipment to support a charitable purpose if the contribution is otherwise permitted by this and other applicable policies.
3. Making contributions for library books.
4. Non-fundraiser related contributions for operating expenses or capital improvements or acquisitions when the recipient is a society, association, foundation or other tax-exempt organizations that does not have revenues other than membership dues and/or relies on contributions to pay for operating expenses or capital improvements or acquisitions.
Is not for an awards, alumni, or other recognition event sponsored by a Customer, unless it is included as part of a fundraising event that satisfies all other applicable requirements.
Is not connected to MSD products or otherwise intended to fund MSD business activities and purposes. All such requests are referred to appropriate staff under MSD's BCS Policies for BCS #6.
Is not wholly a payment in return for items, services or other benefits. For example, exhibit space, advertising, consulting services, etc.
Is not implicitly or explicitly linked to an agreement of a Customer to purchase, use, order, recommend, or make referrals for MSD products or used to reward past purchases, uses, orders, recommendations, or referrals.
Will not result in more than an incidental private benefit to a Customer. For example, a surgeon who acts as a fellow supervisor.
Does not exceed the charitable activity's anticipated costs by itself or in combination with other expected sources of financial support from other third parties.
Is not unreasonable in light of the amount of other previous donations to the requestor or recipient for other charitable activities during the prior twelve months.
Has been reviewed and approved by the Washington Government Affairs Office if any part of the contribution will be used for lobbying activities.
Does not create an unreasonable appearance of an illegal or unethical motive.
Is not provided to a person or organization excluded from participation in Medicare, Medicaid or other federal health care programs by the Department of Health and Human Service's Office of Inspector General or barred from federal contracting by the General Services Administration.
Is not provided to a person or organization identified on the U.S. State Department's Terrorist Exclusions List or the U.S. Treasury Department's list of Specially Designated National or Blocked Persons.
Is consistent with MSD's charitable contribution policies.

There are additional criteria that apply to the specific types of charitable contribution, such as educational activities, Fellowships, etc. that are identified in those sections that can be selected from the menu on the left.

Educational Grants, Sponsorships, Scholarships and Other Third Party Meeting Funding
All requests for educational grants, sponsorship, scholarships for health care professionals, and other funding for conferences, congresses, grand rounds, and other educational meetings not sponsored by MSD -- Third Party Meetings -- are handled under Medtronic's U.S. Business Conduct Standard #8. If you want to request Third Party Meeting Support, select Third Party Meeting from the menu on the left.

Sales Personnel Involvement in Customer-Based Charitable Contributions
MSD's Sales Personnel, including employees, Distributors and Independent Sales Representatives, may not be involved in requesting or granting Customer-Based Charitable Contribution requests, except for completing the product lists that are required for any requests for free products to use with indigent patients. The federal government has stated that sales personnel involvement in a medical device company's charitable contributions process suggests that the contribution has a sales purpose rather than a genuine charitable purpose. If sales is involved in the charitable contribution, the federal government will probably assume that the contribution is an illegal kick-back and the Customer, the Sales Personnel, and MSD are at risk for law enforcement action.

As a result, MSD prohibits Sales Personnel who have Customer contact or receive commissions as any part of their compensation from participating in the process for deciding whether to grant a charitable contribution request. Consequently, MSD Sales Personnel may not:

Complete a contribution request form for or on behalf of a Customer, except for product request lists for Charitable Mission and Patient Assistance Product Contribution Request Forms.
Submit a contribution request form for or on behalf of a customer.
Promise that MSD will make a contribution.
Try to influence any Customer-Based Charitable Contribution decisions.

However, MSD Sales Personnel may:

Direct Customers to this website.
Provide Customers a paper or electronic version of the request forms and the information provided on this website.
Provide Customers relevant contact information, such as the Charitable Contribution Manager's phone number or email address.
Assist the Charitable Contributions Manager with requests for product contributions when the Sales Personnel can provide information needed to implement the request. The Sales Personnel may not attempt to influence the decision of whether to grant the request.

If you become aware of any violation of these policies, please send an email to MSDCompliance@medtronic.com or, if you want to remain anonymous, call Medtronic's Compliance Line at (800) 488-3125.

If you have access to MySpineTools.com more information is available at Compliance on MySpineTools.com by selecting "Answering Questions and Reporting Concerns" from the menu on the left.

Recognition, Awards, and Other Celebratory Events

Generally, MSD does not financially support the cost of recognition, awards, and other celebratory events. MSD may sponsor such events if they include funding options not related to the cost of the event, such as raising funds for spine-related research.

Corporate Charitable Contributions Committee

MSD's Corporate Charitable Contributions Committee is responsible for reviewing and deciding on:

Educational Activities
Fellowships
Fundraiser Events
Monetary

Charitable Contribution Manager
MSD has designated a Charitable Contributions Manager who is responsible for processing Customer-Based Charitable Contributions. The name and contact for MSD's Charitable Contributions Manager is:

Judy Wessels
1800 Pyramid Place
Memphis, Tennessee 38132
Voice: 901-344-1143
Fax: 901-344-1576
judy.wessels@medtronic.com
MSDCharitableContributions@medtronic.com

Any questions regarding the process or status of a contribution request can be directed to the Charitable Contributions Manager or the Charitable Contributions Assistant at MSDCharitableContributions@medtronic.com.

Charitable Contribution Program Brochures
MSD's Compliance Office has two brochures regarding charitable contributions. One has general information about the Charitable Contributions Program. A second brochure has more specific information about Fellowship Charitable Contributions. These brochures can help Customers, as well as sales representatives, understand when and how MSD makes charitable contributions.

To order brochures, you need access to MySpineTools.com. If you do not have access, you can ask you MSD sales representative for the brochures or send an email to MSDCharitableContributions@medtronic.com and ask for the brochures.

If you have access to MySpineTools.com, the brochures can be ordered on MySpineTools.com by selecting "Resources" from the top navigation bar, and then from the Overview page, selecting "Click here to order available literature and video for customer use." The brochures are under the Sales Division category. The Item # for the Charitable Contributions Program brochure is LITCCBR4. The Item # for the Fellowship aCharitable Contribution brochure is LITFSBR4.

General Charitable Contribution Q&A
The following are Q&As that apply to all types of charitable contributions. When you select one of the specific types of charitable contributions from the menu on the left, you will find Q&As specific to that type of charitable contribution.

Why is there so much concern about the charitable contributions MSD gives to its customers or that its customers request for other charitable organizations?

Because the federal government and several state governments are aggressively investigating charitable contributions that pharmaceutical and medical device companies give to or for their customers. The government believes that companies use charitable contributions as a way to reward physicians and other purchasers for using their products in the past and to encourage them to use their products in the future. When the government ultimately pays for these products - typically through Medicare or Medicaid - then these types of incentives are considered illegal kickbacks.

The federal government is investigating medical device companies and their Customers for these types of illegal kickbacks and they expect to enter into big settlements like they have with pharmaceutical companies.

What are the laws that restrict MSD's ability to make charitable contributions?

The laws that directly apply to charitable contributions are not the primary concern - it is the state and federal anti-kickback laws that prohibit giving or receiving anything of value in exchange for purchasing something that is paid for by tax dollars - typically Medicare or Medicaid. If a company like MSD gives a charitable contribution and only one purpose of that contribution is the expectation that a Customer will continue or start buying our products - the federal government believes there has been an illegal kickback and MSD could be prosecuted.

It is not only illegal for MSD to give kickbacks, it is also illegal for its Customers to receive kickbacks. That means that if MSD's charitable contribution is considered an illegal kickback, then the Customer who receives the charitable contribution could be prosecuted for accepting an illegal kickback. It is not very good customer service if Customers are investigated or prosecuted as a result of their relationship with MSD.

What does the AdvaMed Code of Ethics say about charitable contributions?

Section VIII of AdvaMed's Code of Ethics on Interactions with Health Care Professionals allows members to make genuine and legitimate charitable contributions that are intended for a charitable purpose. The contributions are typically to be made directly to a charitable organization. The Code of Ethics prohibits contributions that are intended to encourage someone to purchase a member's products. It also requires appropriate documentation of all contributions.

More information about the AdvaMed, a trade association for medical device manufacturers, and its Code of Ethics is availabel at http://www.advamed.org. There is also more information at Compliance on MySpineTools.com. If you do not have access to MySpineTools.com and want more information about AdvaMed's Code of Ethics, send an email to MSDCompliance@medtronic.com and describe what you are interested in.

What does Medtronic's US Business Conduct Standards say about charitable contributions?

Medtronic's BCS #3 states:

"Donations to Customers or organizations affiliated with Customers are permitted only if the donation is intended to benefit society and promote better health care, demonstrate good corporate citizenship, or serve a genuine educational function, and, except in rare instances, only where the recipient is a tax-exempt charity."

The BCS also provides more details, including:

That the recipient must usually be a tax-exempt charitable organization.

May not directly give customers tickets to fundraiser events that MSD paid for.

And more.

More information about the Medtronic's U.S. Business Conduct Standards is available at Compliance on MySpineTools.com. If you do not have access to MySpineTools.com and want more information about Medtronic's U.S. Business Conduct Standards, send an email to MSDCompliance@medtronic.com and describe what you are interested in.

What types of contributions does MSD make and how does it decide when to give?

MSD makes five types of charitable contributions:

Educational Activities

Fellowships

Fundraiser Events

Monetary

Products

There are general criteria that apply to all contributions, including: (1) benefiting society and promoting better health, or demonstrating good corporate citizenship, or genuine education function; (2) tax-exempt charitable organization or genuine charitable purpose; (3) related to spinal trauma, deformity, or degeneration or associated neurological disease states or medical conditions; (4) not to reward past or future business with MSD.

There are also criteria that apply to the different types of contributions. For example, for fundraiser events: (1) there have to be a broad non-vendor donor base, (2) cannot directly pay for Customers to attend; (3) contributions for golf tournaments are limited to $2500; and (4) contributions for gala events are limited to $5000.

Can a Customer require MSD to make a contribution in order to do business with MSD?

No. The federal and state anti-kickback laws make it illegal to tie a charitable contribution to past or future business with MSD. That is why MSD has implemented a Charitable Contributions Program -- to help make sure that both its Customers and MSD comply with the anti-kickback laws.

If a Customer insists that the contribution is necessary to continue to get his medical device business, MSD will not be able to make the charitable contribution - even if the contribution would otherwise qualify under the Charitable Contributions Program.

Can MSD give tickets to charitable events to Customers?

No. Giving Customers tickets to a charitable event is an inappropriate gift. Charitable event tickets purchased by MSD must either be used by MSD staff or donated to the charity, which may in turn and without MSD involvement give the tickets away as it deems appropriate.

Can sales reps and other MSD employees participate in community volunteer activities that involve a Customer?

MSD encourages its employees, Independent Sales Representatives, and Distributors to actively participate in volunteer opportunities within their community. Their participation in a Customer's volunteer activities in their community does not violate the AdvaMed Code of Ethics or BCS if:

They are not volunteering with the intent that the Customer will use, buy, lease, or recommend MSD's Products as a result of your participating.
The Customer did not require them to participate to get or keep its business.
The volunteer activity is available to the general community - not just the Customer's vendors.

Is purchasing a booth or advertising at a Customer's charitable event a donation?

Generally not. An exhibit booth or advertising is a permissible business expense, so long as fair market value is paid and the booth or advertising advances a legitimate business objective.

Who do I contact if I have questions about MSD's Charitable Contributions Program?

You can send an email to MSDCharitableContributions@medtronic.com or contact MSD's Charitable Contributions Manager.

Have more questions?
Visit our websites for answers to all your back and neck problems.
Back.com | iScoliosis.com | MatureSpine.com | NeckSurgery.com

Published: April 05, 2005	Updated: September 17, 2007
All articles and graphics Copyright�2005, Medtronic Sofamor Danek, All Rights Reserved. Please review our Privacy Policy, Editorial Policy, Terms Of Use, Credits or Contact Us for more information.