what the affluent think about giving to healthcare · healthcare insurance as somewhat or very...

What the Affluent Think about Giving to Healthcare

Bentz Whaley Flessner’s Annual SurveySeptember 2008

© 2008 Bentz Whaley Flessner1

Introduction

This past year has brought about significant changes to the economic and philanthropic climate. As we launched our 8th annual survey on healthcare giving, we took into consideration the potential impact of an unstable economic environment.

As development professionals, we know that affluent donors play an important role in philanthropy and that our industry is focused upon developing relationships with affluent donors for ongoing program support or prospective campaigns to support our organizational missions. But with the uncertainty in the marketplace, how do we shape our work to accommodate these challenging times?

Affluent donors are renegotiating their giving terms and taking more of an active role in the direction and use of their charitable dollars. How will this affect our ability to meet healthcare philanthropic needs? While many experts believe that giving from affluent individuals will not drastically change, other factors such as timing of gifts will be critical considerations in the months to come.

Our Annual Healthcare Survey is designed to help prepare you and your development program for long-term success.


Objective, Methodology, and Design

Our Objective: Annually, Bentz Whaley Flessner’s healthcare practice conducts research to gauge the perceptions and opinions of affluent Americans toward making gifts to healthcare organizations. Our goal in collecting this data is to help enable you to become a stronger, more vibrant healthcare development organization.

Methodology and Design: An “affluent household” is defined as having a household income greater than $200,000 or assets in excess of $1 million.The electronic survey is distributed annually in August or September. . The online survey is open for approximately one week after delivery of the email invitation.


2008 Demographics

Giving84% of survey respondents contribute to charities*51% of respondents contributing to charities support healthcare facilities

Gender50% men; 50% women

Age11% under age 3045% age 30–4427% age 45–5914% age 60 or older

Family68% have children20% have grandchildren

*Note: In 2007 and 2008, 84% of survey respondents reported contributing to charities.


The majority (84%) of our affluent respondents contribute to charities. Donors provide the greatest amount of support to the following types of organizations.

Type of Organizations Donors Allocated Greatest Amount of Support

1%

3%

9%

10%

10%

14%

15%

18%

24%

2%

3%

9%

11%

10%

12%

17%

17%

1%

3%

7%

10%

13%

11%

15%

19%

20%21%

0% 5% 10% 15% 20% 25%

International Affairs

Hospitals

Arts/Culture/Humanities

Public-society Benefit

Environment/Animals

Education

Human Services

Healthcare Causes

Religion

200820072006


Although 24% of affluent donors report supporting hospitals at some level, only 3% made their largest gifts to hospitals.

Organizations Supportedat Any Level in 2008

12%

22%

40%

42%

43%

43%

49%

49%

51%

12%

24%

37%

39%

38%

47%

44%

54%

50%

0% 10% 20% 30% 40% 50% 60%


Hospitals


Environment/Animals

Arts/Culture/Humanities

Religion

Education

Healthcare Causes

Human Services

20082007

Let’s take a closer look at support to hospitals.


Of the donors that support hospitals, 42% give to more than one type of healthcare institution.

Children’s hospitals remain the top priority among affluent donors, and the percentage of affluent individuals who support children’s hospitals continues to increase.

Types of Hospitals Supported by Donors

17%

35%

49%

60%

18%

42%

47%

16%

38%

48%

67%63%

0% 20% 40% 60% 80%

Long-term CareFacilities

CommunityHospitals

Academic MCs

Children'sHospitals

2008

2007

2006


While overall gender differences in giving have decreased, women continue to support children’s hospitals, while more men report greater support to community hospitals and long-term care facilities.

Types of Hospitals Supported by Men and Women in 2008

17%

41%

48%

63%

16%

36%

48%

71%

0% 20% 40% 60% 80%

Long-term CareFacilities

Community Hospitals

Academic MCs

Children's Hospitals

WomenMen

Hospitals Supported by Women

0% 20% 40% 60% 80%

Long-term Care Facilities

Com m unity Hospitals

Academ ic MCs


200820072006

Hospitals Supported by Men

0% 20% 40% 60% 80%

Long-term Care Facilities

Com m unity Hospitals

Academ ic MCs


200820072006


Importance to community and a direct experience with a hospital remain key motivators for giving. The influence of a friend or a physician continues to increase as motivating factors.

Motivations that Drive Giving to Hospitals

0% 10% 20% 30% 40% 50% 60%

PhysicianRecommendation

Request fromFriend

Reputation ofHospital

Recent Personal orFamily Experience

Importance toCommunity

2008200720062005


Despite the importance of a recent personal or family experience with the hospital to giving, 69% of affluent donors were not asked to make a gift. When asked, overwhelmingly a gift resulted.

*Donors not asked to make a gift.

Impact of Recent Personal or Family Experiences with a Hospital on Giving

I was asked to make a gift and declined.

1%

*I was not asked to make a gift, nor did I

make a donation.8%

*I gave a gift without being asked.

61%

I was asked to make a gift and as a result, I

made a donation.30%


Hospitals are not doing an effective job of making the case for philanthropy.

Reasons Given for Not Supporting Hospitals

12%

17%

14%

10%

18%

4%

55%

10%

18%

17%

18%

30%

39%

41%

Government, not charity should do more forhospitals.

I have never been asked to make a gift.

I receive my healthcare at a for-profit hospital.

I do not think my hospital needs my money.

Hospitals are businesses and do not need my gift.

Other organizations need my money more.

I pay for my healthcare through health insurance.

Donors, not hospitals

Non-donors


Some individuals not making gifts to hospitals indicated that a “grateful patient” program would motivate them to give to their hospital.

Non-Donors

YesNo

Donors, Not to Hospitals

YesNo

If your hospital had a special program that recognizes and gives special consideration to patients if they are contributors, would that motivate you to give?

77%

23%

72%

28%


Of those who support hospitals, approximately one out of four expect to be recognized and receive special consideration.

As a donor, do you expect to be recognized and receive special consideration as a patient?

69%

23%

8%

YesNoI don't know

Who influences donors to give?


Giving decisions are influenced by those closest to the donor.

The influence of organization representatives and financial advisors is reported at a greater level among donors to hospitals than among donors who do not support hospitals.

Influence on Giving Decisions

71%

63%

75%

77%

91%

60%

34%

57%

60%

83%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

OrganizationRepresentatives

Financial Advisors

Peers

Other FamilyMembers

Spouse or Partner

Donors to Hospitals Donors, Not to Hospitals


Family members, especially spouses/partners, have the greatest amount of influence on gift size.

Hospital donors reported that their spheres of influence—other family members, peers, financial advisors, organization representatives—have a far greater impact on decisions on gift size.

Influence on Gift Size

0% 20% 40% 60% 80% 100%

OrganizationRepresentatives

FinancialAdvisors

Peers

Other FamilyMembers

Spouse orPartner

Donors to Hospitals Donors That Do Not Support Hospitals


Medical staff, board members, and hospital leaders play an influential role in securing major gifts for healthcare organizations.

Hospital Representatives Influencing Giving Decisions

0% 10% 20% 30% 40% 50% 60%

Other DevelopmentOfficer

Chief DevelopmentOfficer

CEO/President

Board/Volunteer

Medical/Nursing Staff

No one

2008

2007

2006

Type of Hospital

Who, within a hospital, most influences your giving decisions?

No OneMedical/

Nursing StaffCEO/

PresidentBoard /

Volunteer CDOOther Dev.

Staff

Community hospitals 23% 16% 20% 31% 5% 5%

Academic medical centers/research centers 32% 18% 12% 27% 4% 7%

Children's hospitals 37% 18% 11% 23% 6% 5%

Long-term care facilities 29% 20% 14% 23% 11% 3%


Knowledge about the hospital continues to be the most important factor in working with affluent donors. The value of the relationship with the donor is growing in its importance.

Personal Qualities of Hospital Representatives that Motivate Giving among Donors

14%

23%

61%

15%

27%

65%

21%

35%

35%

63%

28%28%

0% 10% 20% 30% 40% 50% 60% 70%

Expertise with settingup gift plans

Knowledge about meand my

circumstances

Longevity of ourrelationship

Knowledge about thehospital

200820072006

Donors to hospitals place a higher value on all components of hospital revenue.


Revenue Sources

Importance of Bonds and Loans

0% 20% 40% 60% 80% 100%

Non-Donors

Donors, but Not to Hospitals

Donors, Support Hospitals

Very important Somewhat importantNot important I don't know

Importance of Investment Income

0% 20% 40% 60% 80% 100%

Non-Donors




Importance of Managed Care Contracts

0% 20% 40% 60% 80% 100%

Non-Donors




Importance of Government Medicare or Medicaid

0% 20% 40% 60% 80% 100%

Non-Donors





The role and impact of philanthropy need to be more defined and communicated.

Regardless of donor status, more than 64% of affluent Americans regard healthcare insurance as somewhat or very important to a hospital’s bottom line.

Donors to hospitals understand the importance of philanthropy to a greater extent than others; yet 23% of donors and more than 50% of prospective donors need additional education on the role philanthropy plays.

Importance of Healthcare Insurance

0% 20% 40% 60% 80% 100%

Non-Donors

Donors, but Not toHospitals

Donors, SupportHospitals Very important

Somewhat importantNot importantI don't know

Importance of Philanthropy

0% 20% 40% 60% 80% 100%

Non-Donors

Donors, but Not toHospitals

Donors, SupportHospitals Very important

Somewhat importantNot importantI don't know

Considerationsfor your program.


How often did your community hospital seek a gift from you over the past year?

As in past years, the majority of respondents reported that they were not solicited for a gift.

Donor type does make a difference in the number of asks.

Individuals who support hospitals report being asked more frequently.More than 65% of individuals not supporting hospitals were never asked for a gift.

Frequency of Gift Asks by Year

0% 10% 20% 30% 40% 50% 60%

*I don't know

Zero

Once

Two or Three

Four or More200820072006

Frequency of Gift Asks by Donor Type

0% 10% 20% 30% 40% 50% 60% 70% 80%

*I don't know

Zero

Once

Two or Three

Four or More Donors, to hospitalsDonors, not hospitalsNon-donors


Effective communication and making the case may result in bringing additional donors to your program.

Factors That May Motivate Giving to Hospitals

3%

6%

15%

45%

22%

21%

3%

9%

17%

19%

32%

50%

A change in hospitalleadership.

A new, exciting program.

If asked, I might give.

Nothing could motivateme to give.

A family or personalexperience.

I need to understand whymy support is needed.

Donors, not hospitalsNon-donors


While the vast majority of respondents claim to have an estate plan, only 19% have included nonprofit organizations in their gift planning.

Estate Plan or Will AmongIndividuals Age 45 or Older

87%

89%

87%

0% 20% 40% 60% 80% 100%

2006

2007

2008

Beneficiaries Among Individuals Age 45 or Older

1%

3%

5%

5%

19%

23%

71%

78%

2%

3%

5%

6%

19%

19%

75%

73%

0% 20% 40% 60% 80% 100%

Employees

Pet

Other

Friends

Other Family

Charity

Spouse

Children

20082007


Among charities in estate plans, hospitals are not among the most frequently designated organizations.

Charities included in Estate Plans for Individuals Age 45 Years or Older

6%

18%

24%

18%

15%

49%

30%

37%

61%

3%

8%

20%

25%

27%

27%

31%

41%

53%

10%

28%

23%

23%

28%

23%

26%

36%

51%

0% 10% 20% 30% 40% 50% 60% 70%



Hospitals

Environment and Animals

Human Services

Healthcare Causes

Arts, Culture, andHumanities

Religion

Education

2008

2007

2006


The estate plans of affluent donors do not necessarily reflect their current giving behaviors.

Organization

Age 45 Years or Older and Have a Will

LargestGifts to:

Currently Give to:

Estate Plans include:

Education 10% 49% 54%Religion 26% 56% 38%Arts/Culture/Humanities 6% 45% 24%Human Services 13% 56% 27%Healthcare Causes 16% 56% 24%Environment/Animals 13% 40% 22%Hospitals 4% 25% 24%Public-society Benefit 11% 40% 27%International Affairs 1% 9% 11%


The majority of respondents indicate that the current economy will not impact their giving patterns.

42%58%

YesNo

The survey was conducted in August 2008 prior to the financial turmoil of September 2008.

What does this mean for your development program?

7 Action Items


Develop a case for support and strategies for effectively communicating it.

The importance of philanthropic support for hospitals is not fully understood.Affluent donors and potential donors are seeking information about your hospital and want to understand why their support is needed.

1


Focus your case on the value and worthiness of your hospital.

Your hospital’s value to the community ranks as the most important reason for giving. However, knowing the role of philanthropic support in the hospital’s financial planning is also of value and needs to be articulated. Remember to focus on your hospital’s role and impact in the community.

2


Involve your board members in the development process.

The commitment and the knowledge of board members will influence potential donors. Training and education make board members more confident in their fundraising roles.

3


Be attentive of potential support from grateful patients and families.

A personal or family experience is one of the strongest motivations for giving to hospitals. Donors often expect to be given special consideration when they or family members are patients at the hospital they support. Likewise, non-donors to hospitals indicate that consideration may motivate them to give. Develop a grateful patient program that is focused on building a relationship with those who are donors and those who may become donors.

4


Create a lasting culture of philanthropy within your hospital.

Educate the CEO, caregivers, and others at your hospital on the role of philanthropy in healthcare and at your hospital. Invite them to participate in cultivation and solicitation visits, and keep them informed of the outcomes of those visits.Ask others to identify and communicate with grateful patients and families. Remember to say “thank you” to those involved.

5


Build strong and lasting relationships with donors and potential donors.

Strong relationships are essential for major and planned giving programs.

Even when hospitals are not the recipients of donors’ largest gifts, those who support hospitals are more likely to make provisions for those hospitals in their wills.

With increased competition among non-profit organizations, those donors with relationships are the ones who will be loyal and will make significant gifts while they are living and in their estate plans.

6


Ask!

While some affluent individuals give without being asked, the greatest rewards come from those who are cultivated.

The uncertainty of the economy may change the way people give, but philanthropy has remained strong through past downturns in the economy and projections are that giving will continue to play an important role in healthcare.

While attitudes change form one year to the next, many opportunities to reach affluent individuals with a solid case for support remain untapped.

7


About Us

In 2008, Bentz Whaley Flessner marks its 25th Anniversary. For a quarter of a century, the philanthropic consulting firm has partnered with community hospitals, academic medical centers, children’s hospitals, and multi-hospital systems to build strong development programs.

From development assessments to comprehensive campaigns, from prospect management to data analysis, from donor relations to systems conversion, we have helped healthcare organizations throughout North America to meet their philanthropic goals. The extensive experience of our team of consultants gives us the ability to bring you and your organization an approach that is designed to meet the needs of your development program.

William D. Tippie

Janet L. Hedrick, CFRE

Jana K. Olslund, J.D.

7251 Ohms Lane Minneapolis, MN 55439 952-921-01112461 South Clark Street, Suite 910 Arlington, VA 22202 703-413-5505

www.bwf.com [email protected]

7618

9/jub

/0919

08

what the affluent think about giving to healthcare · healthcare insurance as somewhat or very...

Documents