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Obama's Budget Proposals Will Thwart Charitable Giving to Keep Nonprofit Hospitals Operating, Association for Healthcare Philanthropy Says
Date:2/3/2010

ising budgets and about one quarter decreased staff.

Despite these extra efforts, 85 percent of survey respondents said their philanthropy programs were negatively affected by the economy last year, forcing almost half to downgrade giving projections for the year. Annual direct mail campaigns and special event fundraisers were hard hit. Overall, far fewer major gifts were secured, and 40 percent of respondents reported declines in revenue from government and private grants, and 80 percent cited declines in investment income, with 43 percent seeing a significant decrease.

Fully 27 percent of development organizations used more of the money they raised in 2009 to meet increased demands for hospital charity care, the report found, highlighting the increased need for philanthropic support to cover costs that nonprofit hospitals are no longer able to fund from decreasing margins. A November 2009 American Hospital Association (AHA) study found that 34 percent of U.S. hospitals expected financial losses in the first half of 2009 – up from 29 percent for the same period in 2008 – placing a growing need for philanthropic funding to fill the gap.

A separate January 2010 study of 58 AHP member organizations used benchmarking techniques to detect characteristics of organizations that did the best job of securing charity funds as the recession's impact was going into full swing in 2008. The findings highlighted the need for development offices to invest wisely in staff and resources, cultivate donor and public support, and focus on the most profitable fundraising programs such as major gifts and planned giving.

"A key takeaway from the benchmarking study is the value of cultivating donors through a personalized approach by finding and retaining talented staff," McGinly said. "Adequate resourcing for philanthropic fundraising will be even more important in 2
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SOURCE Association for Healthcare Philanthropy
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