Fund Raising Costs vs Results

Called ROI—return on investment—this story from PRNewswire reports the results of a recent report on the ROI for health related nonprofits.

An excerpt.

“WASHINGTON, Nov. 8, 2010 /PRNewswire-USNewswire/ -- With charitable pledges – especially in the Western United States – declining due to the deepening recession, fundraisers were forced to spend significantly more money in fiscal year 2009 than in past years to secure gifts and grants for nonprofit hospitals and health care systems in the United States and Canada, according to benchmarking data released today by the Association for Healthcare Philanthropy (AHP).

"The recession's impact and duration were felt more strongly in the U.S. than in Canada, where health care philanthropy tended to advance slightly or at least hold its own despite lower levels of government support," said William C. McGinly, Ph.D., president and chief executive officer of AHP. "U.S. nonprofit hospitals, however, often struggled just to keep giving levels steady, and some saw declines."

“McGinly added, "The constant message that shines through the data is that organizations that best survived last year's worsening economy were those who persevered by keeping sufficient staff and resources to maintain well-rounded philanthropic opportunities and programs."

“AHP gathered detailed data from 66 institutions across the U.S. and Canada, including community hospitals, academic/ teaching, tertiary and specialty hospitals and health care systems. On average, the recession hurt charitable giving to health care institutions most severely in the Western region of the U.S. Sample wide, median Return on Investment (ROI) – a measure of fundraising effectiveness – fell 23 percent in 2009 from $4.63 to $3.57. For cash donations alone, median ROI fell 17 percent to $3.26.

“On the brighter side last year, physicians and other hospital employees of the organizations reporting data in this study donated more money and did so more frequently. Gift amounts from physicians and physician groups averaged $5,000, up $3,000 from 2008 illustrating great strides in foundations' efforts toward building the internal culture of philanthropy.”