Philanthropic dollars will be especially crucial for hospitals as they try to maximize their revenue, and fortunately, fundraising for healthcare organizations is on the rise, according to a report issued by Wilmington Trust.
Amid shrinking revenues and regulatory changes, healthcare organizations must aim to diversify their fundraising strategies and reach new donors, according to the report. In 2010, healthcare organizations received $22.8 billion in charitable dollars — a 1.3 percent increase compared to 2009.
In fiscal year 2010, the following eight strategies raised the corresponding portion of charitable funds:
Individual annual funds — 20 percent
Individual major gifts — 17.1 percent
Corporate/foundation capital campaigns — 15.4 percent
Individual special events — 14.8 percent
Corporate/foundation grants — 10.7 percent
Individual planned giving — 9.5 percent
Institutional endowment interest — 4.9 percent
Individual memorial gifts — 3.8 percent
Other — 3.8 percent
The report found that more than 70 percent of hospitals had separate foundations, and that 80 percent of those foundations were managed as long-term endowment structures. The endowment fund structure is often preferred opposed to "commingling" all assets at the hospital. The average donation size compared to hospital total revenues is roughly 3.3 percent, according to the report.
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Amid shrinking revenues and regulatory changes, healthcare organizations must aim to diversify their fundraising strategies and reach new donors, according to the report. In 2010, healthcare organizations received $22.8 billion in charitable dollars — a 1.3 percent increase compared to 2009.
In fiscal year 2010, the following eight strategies raised the corresponding portion of charitable funds:
Individual annual funds — 20 percent
Individual major gifts — 17.1 percent
Corporate/foundation capital campaigns — 15.4 percent
Individual special events — 14.8 percent
Corporate/foundation grants — 10.7 percent
Individual planned giving — 9.5 percent
Institutional endowment interest — 4.9 percent
Individual memorial gifts — 3.8 percent
Other — 3.8 percent
The report found that more than 70 percent of hospitals had separate foundations, and that 80 percent of those foundations were managed as long-term endowment structures. The endowment fund structure is often preferred opposed to "commingling" all assets at the hospital. The average donation size compared to hospital total revenues is roughly 3.3 percent, according to the report.
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