from “trends in healthcare philanthropy” article, provide


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from “trends in healthcare philanthropy” article, provide thoughts on the use of philanthropy in the financial structure of an organization. What are some advantages and potential pitfalls of philanthropy as part of the financing structure of healthcare organizations? Healthcare.foundation.article.3.1.pdf Endowments and Foundations Trends in Healthcare Philanthropy and the Use of Separate Foundations In the June 5, 2011 edition of The New York Times, a full-page ad framed in violet announced NYU Langone Medical Center’s Wilmington Trust, N.A. New York-based Endowments and Foundations Team philanthropic milestone: in less than four years, the Medical 33rd Floor, 520 Madison Avenue New York, NY 10022 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. Walter J. Dillingham Jr., CFA Managing Director, Business Development Officer 212.415.0528 wdillingham@wilmingtontrust.com Leigh H. Weiss List.” The article discussed how not-for-profit hospital revenue is growing at its slowest Managing Director, Investment Advisor 212.415.0571 lweiss@wilmingtontrust.com rate in two decades, leading to an uptick in mergers. John M. Lawson 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 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.” 1 ©2012 Wilmington Trust, N.A. Managing Director, Investment Advisor 212.415.0569 jlawson@wilmingtontrust.com Trends in Healthcare Philanthropy and the Use of Separate Foundations Trends in Healthcare Philanthropy provides a view of a decade in annual giving for healthcare, Before determining which strategies and structures work which shows the recent years trending back up. best for a given organization, it helps to have a good With fundraising on the rise for healthcare organizations, understanding of the current giving trends for the industry. it is important to identify the source of this funding In June 2011, Giving USA Foundation1 released its Annual in order to market to the appropriate demographic. Report for Philanthropy for the Year 2010, which highlights As detailed in Figure 2, hospitals utilize a number of current trends in giving. According to the Report, overall giving was up 2.1% (inflation adjusted) to $290 billion Figure 2: compared to the prior year. Funds Raised by Type of Fundraising Activity in Fiscal Year 2010 For 2010, the Report mentions that health-related organizations received an estimated 8% of charitable dollars, or Annual Fund 20.0% Individual 6%. This represented a 1.3% increase from 2009 (a decline Major Gifts 17.1% Individual of 0.3% adjusted for inflation). The Report notes that these Capital Campaign 15.4% Corporate/Foundations Special Events 14.8% Individual Grants 10.7% Corporate/Foundations Planned Giving 9.5% Individual Endowment Interest 4.9% Institutional Memorial Gifts 3.8% Individual Philanthropy (AHP) provided its Annual Giving Report Other 3.8% for 2010. The Report showed that hospitals and healthcare Total 100% $22.8 billion; in recent prior years

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