WASHINGTON – Contributions to healthcare organizations increased to nearly $8 billion in 2006, but that growth in giving didn't equal the amount of growth the previous year.
According to an analysis of data by the Association for Healthcare Philanthropy, contributions to healthcare facilities and organizations totaled $7.9 billion in 2006, an increase of 11.5 percent from the $7 billion contributed in 2005.
By contrast, total contributions in 2005 total were up 16 percent from 2004, and the decline in growth from that year to this year is troubling to executives of the philanthropic organization.
"Philanthropic dollars are being eroded and the healthcare system is being stressed by a 'perfect storm' of problems for non-profits," said William C. McGinly, president and CEO of the organization.
Problems range from new proposed health coverage for the uninsured and illegal immigrants to minimal financial margins to privacy rules that impede access to generous donors, AHP's report said.
Another threat could come from Congressional efforts to re-examine the tax-exempt status of not-for-profit healthcare organizations, McGinly said.
In 2006, 60 percent of contributions from U.S. facilities came from individuals, a percentage that did not change from 2005. Contributions from businesses represented 20.4 percent of all contributions in 2006, up from 18.2 percent in 2005. Gifts from non-corporate foundations represented 12 percent of all donations in 2006, down from 12.7 percent in 2005. And donations from other sources totaled 8.1 percent of all gifts to healthcare organizations in 2006, down from 10 percent in 2005.
Of the $7.9 billion donated to healthcare organizations, cash gifts totaled $5.9 billion, or 75 percent of all donations, while pledges accounted for $2 billion of all funds raised. Of pledges, planned gifts ($435 million) and other assets ($78 million) were listed as secured but not yet paid.
“Donor confidence and the economy is getting shaky,” McGinly said.
Capital projects engender the most giving, he said, while contributions to fund charity care are declining.
“CFOs say the biggest challenge is replacing what they already have through construction and buying technology,” McGinly said. “It builds a strong case for hospitals running capital campaigns.”