The sour economy is expected to hit non-profit hospitals especially hard in 2009, according to a new survey from the Association for Healthcare Philanthropy.
A survey of roughly 800 fundraising executives at non-profit hospitals and healthcare institutions indicated about half will see declines in funding from grateful donors, averaging out at about 17 percent. Forty percent say they expect cuts to their operating budgets, averaging out at about 12 percent, while 63 percent say they expect to cut back on special fundraising events such as high-end galas.
Despite the dour predictions, AHP officials say an "overwhelming majority" of the organization's members vow to continue to provide vital community services, which range from free mammography and cancer screenings for the poor to community clinics, hospice facilities and immunizations for the uninsured.
"Even in challenging economic times, the AHP recession survey shows our members will not cut back on critically needed programs that communities depend on for the well-being of their citizens," said AHP Board Chairman Lisa Hillman, senior vice president and chief development officer for the Anne Arundel Health System in Annapolis, Md.
Instead, the AHP survey found that non-profits plan to cut back in construction and equipment purchases. Only 8 percent of those surveyed said their institutions would have to cut healthcare services for the poor and underinsured.
"Despite the deepening recession, hospitals and healthcare systems will continue to exercise skill, planning and patience in order to raise scarcer donations which are designed to serve both the insured and uninsured," said William McGinly, the AHP's president and CEO. "Increasing numbers of healthcare systems, hospitals and foundations affiliated with AHP are beginning to benchmark their fundraising data. This enables them to better evaluate their strategies and convince donors, board members, hospital leaders, elected officials and the public that they are accountable for the gifts they receive and are using those limited funds in the most cost effective and transparent manner."
The Washington, D.C.-based AHP's members direct philanthropic programs in 2,200 of North America's healthcare institutions. Members include fundraising professionals, trustees, marketing professionals, administrators and executives interested in healthcare fundraising.
Does your healthcare organization expect to see a decrease in charitable gifts this year? How do you plan to handle that decrease in anticipated revenues? Is there a lesson to be learned for other non-profits? Send your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com.