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Philanthropy 2020: Will Hospitals Continue to Deserve our Time, Talent

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Changes how campaigns are managed & evaluated. Longer fundraising cycles ... Increased focus on campaigns for capital needs or Centers of Excellence (program ... – PowerPoint PPT presentation

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Title: Philanthropy 2020: Will Hospitals Continue to Deserve our Time, Talent


1
Philanthropy 2020 Will Hospitals Continue to
Deserve our Time, Talent Treasure?
  • The Governance Institute
  • San Diego, California
  • June 3, 2008
  • William C. McGinly, Ph.D., CAE
  • President, Chief Executive Officer
  • Association for Healthcare Philanthropy
  • Falls Church, VA 22046
  • (703) 532-6243 www.ahp.org

2
Where You Stand Depends On Where You Sit
  • Varied Interests/Drives/Needs
  • Hospital Foundation Trustee
  • Donor
  • Public
  • Chief Executive Officer (CEO)
  • Chief Financial Officer (CFO)
  • Chief Development Officer (CDO)

3
Growing reliance on philanthropy
  • According to hospital CFOs
  • Almost half say they are not keeping up with
    capital needs
  • 72 expect capital spending to increase in the
    next five years by on average 14
  • 85 believe it will be more difficult to fund
    capital projects in the future
  • (Source Financing the Future Report 6 How are
    Hospitals Financing the Future? Where the
    Industry will go from here. Healthcare Financial
    Management Association)

4
Growing reliance on philanthropy
  • Hospitals have been under investing in their
    infrastructure
  • Deteriorating facilities
  • Technological advances needed to maintain
    efficiencies
  • Many hospitals no longer have the margins to
    support these improvements

5
Growing reliance on Philanthropy
6
Growing reliance on philanthropy
  • Investors focusing on philanthropy as part of
    total financial health
  • Moodys March 2006 Special report

7
Growing reliance on Philanthropy
8
Increased scrutiny of nonprofit hospitals
  • Measuring Community Benefit
  • Catholic Health Association guidelines
  • Sen. Grassleys proposal

9
Shift to Major Gift Programs
  • Resources shifting to major gifts and planned
    giving to address increased needs
  • Changes how campaigns are managed evaluated
  • Longer fundraising cycles
  • CEO involvement to reach major donors

10
Shift in Program Planning
11
Shift in Program Planning
12
Shift in Program Planning
13
Key Trends Shaping Organizations
  • Change in the nature of change
  • Increased demand for results
  • Less time from volunteers
  • Technologys promise
  • Generational/Multi-cultural demographics
  • ECONOMICS!

14
Changing Measures of Success
  • Cost-to-raise-a-dollar indicates efficiency, not
    effectiveness
  • Must adopt better productivity tools models
  • Evaluate and modify resources in response to
    fundraising cycles

15
Culture…?
  • Act of developing by education training
    experience communication
  • Refinement of intellectual concept
  • Form or stage of organizational growth current
    position
  • How do you create it…?

16
Recognize Overcome Barriers To Philanthropy…
  • You tell me! -- The Reality!
  • Financial Viability
  • Escalating costs
  • New payer relationships
  • Consumer driven health plans
  • Ever increasing capital needs

17
Issues Continued…
  • Demographics
  • Aging implications
  • Increased patient expectations (web based
    knowledge of patients)
  • Diverse in all ways
  • Income disparity
  • Chronically ill expanding

18
Opportunities/Challenges
  • Physicians
  • Drive competition
  • incomes threatened
  • shortages
  • single specialty mega groups
  • physician owned outpatient programs
  • Others (yours)…and,
  • The counterbalance!

19
Changing Role of Hospital CEO
  • Providing direction for fundraising efforts
  • Working closely with CFO and CDO in evaluating
    results
  • Setting vision that inspires major donors

20
Changing Role of Hospital CEO
21
Hospital/System CEO Membership on the Foundation
Board
Hospital/System CEO a Voting Member of the
Foundation Board n108
22
Change in Importance of Philanthropy Over the
Past Three Years
23
CEOs Fundraising Responsibilities/Demands Over
the Past 3 Years Have ...
24
2006 Contributions 295.02 Billion By Source of
Contributions
Source Giving USA FoundationTM Giving USA 2007
25
2006 Contributions 295.02 Billion By Type of
Recipient Organization
Source Giving USA FoundationTM Giving USA 2007
26
AHP Giving History
  • 1998 AHP Giving Report
  • 1999 AHP Giving Report
  • 2000 AHP Giving Report
  • 2001 AHP Giving Report
  • 2002 AHP Giving Report
  • 2003 AHP Giving Report
  • 2004 AHP Giving Report
  • 2005 AHP Giving Report
  • 2006 AHP Giving Report
  • 5.7 Billion (1.92 Billion more than all United
    Way)
  • 6.1 Billion
  • 6.96 Billion (3.1 Billion more than all United
    Way)
  • 8 Billion
  • 5.5 Billion
  • 5.9 Billion
  • 6.1 Billion
  • 7.1 Billion (16 increase)
  • 7.9 Billion (11.5 increase)

27
Not All Fundraising Activities Equally Productive
Median ROI by Fundraising Activity
28
Substantial Effort on the Least Effective Channels
Over one-third of time spent on costliest
activities
Executive Time Spent on Each Activity
29
Percentage of Respondents Who Predicted
Fundraising Will Be Successful or Somewhat
Successful in 6 Months
30
How to Maximize Philanthropy in the 21st Century
  • Grounded in charitable purpose
  • Bold strategies
  • Strong leadership
  • Back-to-basics
  • Strategic contributions
  • Sensible partnering
  • ROI - Benchmarking

31
Practical Philanthropy
  • Annual Fund
  • Capital Campaigns
  • Major Gifts
  • Deferred/Planned Giving
  • Grant making

32
Has a Board Member ever asked
  • How are we doing?
  • Are we tracking the right measures?
  • How do we compare with others?
  • Are we making progress fast enough?
  • Are we using the best?
  • Benchmarking can give you the external references
    and the best practices on which to base your
    evaluations and to design your work processes.

33
Benchmarking -- Why now?
  • Philanthropy has moved from value-added function
    to an important and integral part of financial
    planning for health care.
  • Expectations on development and fundraising
    accountability are increasing to a level on par
    with system operations.
  • Chief development officers are being charged to
    respond with meaningful information that
    addresses management questions of efficiencies
    and the optimization of fund-raising capacity.
  • A collaborative effort is needed to identify
    performance measures for internal reporting and
    to test their reliability.

34
It Is…2020
  • What role has philanthropy played over the past
    twelve years in support of you hospital
    foundation initiatives? (Be specific)
  • Expectations of fund raising built into strategic
    financial planning?
  • Increased focus on campaigns for capital needs or
    Centers of Excellence (program needs of
    community)?

35
It is…2020
  • How has your hospital foundation culture of
    philanthropy developed?
  • Constituency composition source of funds
    changed? How why?
  • Impact of this change on foundation or hospital
    boards?
  • What have been the specific changes on these
    boards?

36
It is…2020
  • Your foundation is in top 25 of comparable
    hospital foundations on key fund raising
    benchmarks, ROI, expenses fund raising
    performance.
  • What accounts for this success?
  • What additional resources were acquired or
    necessary to achieve this?

37
The Relationship A Synergy
  • Shared leadership
  • Hospital CEO
  • Hospital Board
  • Foundation CEO/CDO
  • Foundation Board
  • Others Public, Donors, Employees, Colleagues
    More!

38
Board Members Senior Management Can Ensure
Fundraising Success

39
10 Considerations
  • 1. Board and staff must openly participate in the
    development of the foundations strategic mission
    and vision.

40
10 Considerations
  • 2. Board members must have clear job descriptions
    that define the importance of their involvement
    and exactly what that involvement needs to be.

41
10 Considerations
  • 3. Boards need good continuing education and
    orientation about health field and philanthropic
    challenge.
  • 4. Staff needs clear job descriptions and
    performance reviews.

42
10 Considerations
  • 5. Communication must be clearer, more open and
    honest, more frequent, and of higher quality.
  • 6. Board and staff need mutual respect and must
    be willing to ask each other questions in
    non-threatening ways.

43
10 Considerations
  • 7. All need to avoid surprises that frustrate
    sound planning and working relationships.
  • 8. Board meetings and materials must be
    streamlined and made more interesting (purpose
    focused).

44
10 Considerations
  • 9. Everything the board and staff do should be
    focused on what is good for the patients,
    community and attractive to donor partners.
  • 10. Staff needs to spend more time doing
    one-on-ones with each board member during the
    year.

45
What Can You DO…
  • Ensure
  • Integrate philanthropy as a core strategy
  • Adopt better measurements and standards
    (benchmarking)
  • Use technology to improve efficiency
  • Execute a plan to communicate community benefit
  • Lead with the mission!

46
www.ahp.org
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