Charitable Pledges to Hospitals Slow, Could Affect Future Fundraising Efforts
Charitable pledges to U.S. and Canadian nonprofit healthcare organizations slowed during fiscal year 2010, a development that could jeopardize the ability of healthcare institutions to raise enough funds to meet their long-term, construction, equipment, and patient needs, a survey from the Association for Healthcare Philanthropy finds.
The AHP Performance Benchmarking Service survey of sixty-three nonprofit healthcare organizations found that in the first full year of post-recession fundraising, hospitals and healthcare systems saw fewer new gift pledges and planned gift commitments. While cash gifts increased 14 percent during the 2008-10 period, with 8 percent of that gain occurring between 2009 and 2010, new pledges and planned gift commitments increased only 2.5 percent during the three-year period.
"We even saw this trend among high-performing fundraising operations that raised substantial revenues in fiscal year 2010," said William C. McGinly, AHP's chief executive officer. "That's disturbing because it means organizations will have less in the pipeline for future years, adding to the uncertainty of the recovery."
The survey also found that organizations with the staff and resources to run charity programs and hire professional fundraisers performed significantly better in securing major gifts, government grants, and event revenue. Indeed, a majority of the sixteen "high performers" — organizations with net fundraising revenues of at least $5 million — were healthcare systems and academic/teaching hospitals.
"Philanthropic contributions can make an extraordinary difference in the health of our communities, yet the ongoing debate around healthcare costs, delivery systems, and access, combined with economic conditions nationwide, has slowed decision making for major donors considering gifts to health care related organizations," said AHP board chair Susan J. Doliner. "Delayed decision making by donors delays innovation and quality care advancements in our communities."
