AHP: Budget Proposals Will Thwart Charitable Giving, Endanger Hospitals
Fully 27 percent of development organizations used more of the money they raised in 2009 to meet increased demands for hospital charity care, the report found, highlighting the increased need for philanthropic support to cover costs that nonprofit hospitals are no longer able to fund from decreasing margins. A November 2009 American Hospital Association (AHA) study found that 34 percent of U.S. hospitals expected financial losses in the first half of 2009 – up from 29 percent for the same period in 2008 – placing a growing need for philanthropic funding to fill the gap.
A separate January 2010 study of 58 AHP member organizations used benchmarking techniques to detect characteristics of organizations that did the best job of securing charity funds as the recession’s impact was going into full swing in 2008. The findings highlighted the need for development offices to invest wisely in staff and resources, cultivate donor and public support, and focus on the most profitable fundraising programs such as major gifts and planned giving.
“A key takeaway from the benchmarking study is the value of cultivating donors through a personalized approach by finding and retaining talented staff,” McGinly said. “Adequate resourcing for philanthropic fundraising will be even more important in 2010 and beyond, especially if we will face declines in government support for nonprofit hospitals in our communities.”
AHP will soon issue a white paper exploring the impact on health care fundraising in future years of new approaches to health care delivery, new modes of philanthropy, changing social and economic traits of donors, and the growing involvement of small business.
The Association for Healthcare Philanthropy, established in 1967, is a not-for-profit organization whose 4,500+ members direct philanthropic programs in 2,200 of North America's not-for-profit health care providers. AHP members provide essential services such as wellness programs; mobile health vans; mammography screenings; hearing and eye exams; and other health care services. AHP is comprised of professionals in the fields of fundraising, development, public relations and marketing, as well as trustees, administrators, and executives interested in health care fundraising.