In the June 5, 2011, edition of the New York Times, a full-page ad framed in violet announced NYU Langone Medical Center's philanthropic milestone: in less than four years, the Medical Center had raised an unprecedented $1 billion. This significant accomplishment helps to demonstrate how important philanthropy is to healthcare organizations as the industry goes through significant change.
Then, just two months later, on August 8, 2011, the Wall Street Journal published an article on a Moody's assessment of the overall industry titled "Hospitals Put on Sick List." The article discussed how not-for-profit hospital revenue is growing at its slowest rate in two decades, leading to an uptick in mergers.
With this in mind, philanthropic dollars will be even more crucial for hospitals as they seek to maximize their revenue base in these challenging times. As overall program revenues continue to shrink and the industry faces regulatory changes that are expected to occur over the next few years, healthcare organizations must seek to diversify their fundraising strategies and employ the best structures for reaching new donors.
William C. McGinly, president and CEO of the Association for Healthcare Philanthropy, commented: "Many of the larger healthcare systems have a long history of successful fundraising programs. The small and medium sized hospitals are starting to take steps to build out and diversify their fundraising strategies, which is crucial for their success."
Read the full report
Walter J. Dillingham, Jr., CFA, Leigh H. Weiss, and John M. Lawson, Wilmington Trust, N.A.
© 2012, Wilmington Trust, N.A. Excerpted from "Trends in Healthcare Philanthropy and the Use of Separate Foundations"; excerpted with permission.
Walter J. Dillingham, Jr., CFA, Leigh H. Weiss, and John M. Lawson are members of the Endowments and Foundations Team at Wilmington Trust, a national wealth management company whose offerings include personal trust, wealth planning, fiduciary, asset management, and family office services.