As the current recession deepened, high performing philanthropic fundraisers in charge of major gifts and planned giving programs were the most effective and efficient rainmakers for health systems.
These findings come from the latest series of reports from the Association for Healthcare Philanthropy’s Performance Benchmarking Service for fiscal year 2007, which takes in the early months of the recession.
The AHP's annual surveys examine the performance of organizations, such as hospital-affiliated foundations, that raise funds for nonprofit healthcare facilities.
"Healthcare executives and boards should think twice before downsizing their fundraising staff and mix of fundraising activities to cope with the recession," said William McGinly, AHP's president and CEO.
The highest performing fundraising organizations put stronger, longer-term emphasis on cultivating major gifts, McGinly said, investing on average three times more than other surveyed organizations but earning five times more in high-dollar gifts.
The survey revealed that major gifts to health systems given by individual contributors averaged $55,000 per gift.
"Developing major gifts and planned giving is the type of fundraising that calls upon the skills of the most seasoned professionals," said Lisa Hillman, senior vice president and chief development officer for the Anne Arundel Health System in Annapolis, Md., and current AHP Board Chair. "It takes experienced and talented major gift and planned giving officers to build crucial relationships with donors that result in significant support for the institutions they represent."
The 2007 AHP Performance Benchmarking Service data confirms the National Bureau of Economic Research contention that the recession began in December of 2007. Compared to earlier years, fewer donated dollars were coming from government, businesses and foundations, while the cost-to-raise-a-dollar was rising and return-on-investment was drifting downward for annual giving and special events.
Despite this trend, the survey showed that fundraisers who invested the most in staff and resources devoted to annual gifts and special events earned the highest returns.
"Annual giving and special events remain worthwhile sources of contributions from new and repeat donors," McGinly said. "While not achieving the highest ROI, they provide the base in order to succeed with major gift and planned giving solicitation."
The AHP launched its Performance Benchmarking Service in 2003. Forty-six U.S. and Canadian nonprofit hospitals and multi-facility healthcare systems took part in the 2007 benchmarking program.