Giving Finally Exceeds Pre-Recession Levels as Canadian Hospitals Raised More Than $1.35 Billion Last Year

WASHINGTON, Oct. 3, 2012 /CNW/ - Donors to Canada's health care institutions increased contributions by $151 million last year, 12.5 percent more than in fiscal year 2010. Cash donations and pledges in FY 2011 totaled $1.355 billion, according to the AHP Report on Giving-Canada issued today by the Association for Health Care Philanthropy (AHP).

"It has been four long years since Canadian hospitals and health care systems were able to exceed the $1.337 billion raised through philanthropy in 2007. This had been the high-water mark for giving to health care institutions in Canada since the year 2000," noted Jory Pritchard-Kerr, FAHP, AHP regional director for Canada and executive director of Collingwood General & Marine Hospital Foundation in Collingwood, Ont.

The improved fundraising in fiscal year 2011 primarily enabled Canadian hospitals and health care systems to pay for up-to-date equipment, which accounted for more than 53 cents of every donated dollar. Other important purposes for which donations were expended included funding construction and renovation projects (13.3 percent), providing resources for research and teaching (9.8 percent) and general operations (8.3 percent).

As in past years, more than 8 of every 10 donors were individual givers, who contributed almost 6 of every 10 dollars raised. Most such donors were from the health care institution's surrounding community, while persons with direct ties to the facility, such as patients, staff, physicians and board members, represented more than 37 percent of all individual donors.

Slightly more than 1 in 10 donors was a business or foundation. Their contributions exceeded 3 of every 10 dollars raised.

The FY 2011 report indicates more fundraising success was achieved through major gifts and annual giving than the previous year, while the portion of funds raised dipped for special events and planned giving, but remained about the same for capital campaigns.

In terms of productivity, fundraisers saw slight declines in FY 2011, as the cost to raise a philanthropic dollar rose to 30 cents, up two cents a year earlier. On average, they were able to bring in $3.36 for every dollar of fundraising expenses last year, 20 cents less than in FY 2010. This overall average return-on-investment (ROI), however, varied depending on the size of the health care facility. The ROI for facilities with 100 to 199 beds actually jumped $1.24 to $3.38 over the year, while slipping 75 cents to $3.60 for institutions with more than 400 beds.

The AHP Report on Giving is based on a survey of North American health care institutions affiliated with the Association for Healthcare Philanthropy, a not-for-profit organization established in 1967 whose 5,000 members direct philanthropic programs in 2,200 of North America's 3,400 nonprofit health care providers, including 211 in Canada.

Survey results for the U.S. indicated that philanthropic fundraising by nonprofit health care institutions totaled $8.941 billion in fiscal year 2011, up from $8.264 billion in FY 2010. Giving patterns are similar in the U.S. and Canada, with individual donors accounting for most contributions and most money raised. U.S. hospitals and health care systems devote a smaller portion of donated dollars to buying equipment and larger portions to physical plant improvements, general operations and community benefit programs than their Canadian counterparts.

A copy of the AHP Report on Giving Fact Sheet is available for free on the AHP website at http://www.ahp.org/publicationandtools/Pages/AHPReportonGivingCanada.aspx. The complete report is available for a fee, or for free to AHP members who completed the survey.

The Association for Healthcare Philanthropy, established in 1967, is a not-for-profit organization whose more than 5,000 members direct philanthropic programs in 2,000 of North America's not-for-profit health care providers. Hospitals, health care systems and related facilities for which AHP members raise charitable funds provide essential, comprehensive medical services to their communities. AHP's members include fundraising professionals, development staff, public relations professionals, trustees, marketing professionals, administrators and executives interested in health care fundraising.

SOURCE: Association for Healthcare Philanthropy

Kathy Renzetti, [phone] or [phone], [email protected]

http://www.ahp.org