A type of private foundation created when a nonprofit hospital or health/insurance organization is sold and converted to a for-profit enterprise. Federal law requires that the proceeds from such a sale must go to a charitable purpose, so often these proceeds are used to create a new endowed grantmaking foundation. Health conversion or health legacy foundations usually have health as their primary grantmaking focus, and often give to health causes in the geographic region formerly served by the nonprofit that was sold. Note, however, that these foundations are not legally a separate type or regulatory category.
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