The ABC\'s of Philanthropy


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What is philanthopy? How does it differ from fund raising?

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The ABC\'s of Philanthropy

  1. 1. The ABC’s of Philanthropy :Overview of Healthcare Philanthropy Presented by George F Maynard, III, FAHP Office of Philanthropy and Partnership
  2. 2. Who Gives the Gifts? 2006 CONTRIBUTIONS: $295.02 BILLION BY SOURCE OF CONTRIBUTION Individuals $222.89 75.6% Corporations $12.72 4.3% Foundations $36.50 12.4% Bequests $22.91 7.8% Source: Giving USA Foundation—AAFRC Trust for Philanthropy/ Giving USA 2007
  3. 3. Where do Gifts Go? 2006 CONTRIBUTIONS: $295.02 BILLION BY TYPE OF RECIPIENT ORGANIZATION Source: Giving USA Foundation—AAFRC Trust for Philanthropy/ Giving USA 2007
  4. 4. Identifying Community Need <ul><li>Role of philanthropy officer today is to marry community need with competencies of GHS and philanthropic partners . </li></ul>Not a Fund-Raiser but a Connector Philanthropist GHS Competencies Community Need
  5. 5. Sources of Hospital Capital <ul><li>Excess of revenue over expenses (margin) </li></ul><ul><li>Net income from for-profit enterprises </li></ul><ul><li>Interest and investment earnings </li></ul><ul><li>Debt </li></ul><ul><li>Philanthropy (best return-on-investment) </li></ul><ul><li>(At a 2.8% operating margin it would take $71,428,571. to generate $2,000,000. to the bottom line.) </li></ul>
  6. 6. Uses of Philanthropy <ul><li>Programs and services </li></ul><ul><li>Education and training </li></ul><ul><li>Medical research </li></ul><ul><li>New construction </li></ul><ul><li>Renovation of existing facilities </li></ul><ul><li>New and replacement equipment </li></ul><ul><li>Patient assistance funds </li></ul>
  7. 7. The “Case” for Healthcare <ul><li>Improving the health of the “community” served. </li></ul><ul><li>Keeping up with technology. </li></ul><ul><li>Quality of care for all patients. </li></ul><ul><li>Investing in new programs and services. </li></ul><ul><li>Community partnership. </li></ul><ul><li>Maintaining quality facilities & equipment. </li></ul>
  8. 8. Whose Needs are We Meeting? <ul><li>Community </li></ul><ul><li>Or </li></ul><ul><li>GHS </li></ul><ul><li>Office of Philanthropy </li></ul><ul><li>or </li></ul><ul><li>Donor </li></ul>
  9. 9. Why People Give <ul><li>They are asked to give </li></ul><ul><li>They believe in the mission </li></ul><ul><li>In gratitude to the Greenville Hospital System </li></ul><ul><li>To make a difference in their community </li></ul><ul><li>Share a vision for future human needs </li></ul><ul><li>To meet their own psychological needs </li></ul>
  10. 10. The Cycle of Donor Engagement Identification Investment Interest Information Involvement
  11. 11. How Do We Maximize Relationships? Donor Hot Buttons (Affinity/Experience) GHS Community Impact & Benefit: Stories Reflecting Work And Reputation GHS Case(s) for Support The Sweet Spot of the Giver ( Time, Talent &Treasure )
  12. 12. Who Influences the Donor? <ul><li>Medical/Nursing staff. </li></ul><ul><li>Board/volunteer. </li></ul><ul><li>President & CEO </li></ul><ul><li>Other Philanthropy Officers </li></ul><ul><li>Chief Philanthropy Officer </li></ul><ul><li>2005 Bentz Whaley Flessner </li></ul>
  13. 13. Defining Constituencies <ul><li>Definition: </li></ul><ul><li>Constituent – Someone who has an affinity and/or relationship with GHS. Can be an individual, business, service organization, foundation, etc—but it is always through an individual. </li></ul><ul><li>Constituency – Group of constituents with similar characteristics who have an affinity and/or relationship with an organization. </li></ul>
  14. 14. Pool of Constituents <ul><li>Physicians </li></ul><ul><li>Trustees </li></ul><ul><li>Grateful Patient Referrals </li></ul><ul><li>Foundations </li></ul><ul><li>Wealth Screening of Patient or other databases </li></ul><ul><li>Top Annual & Event Donors </li></ul><ul><li>Volunteers </li></ul><ul><li>Community Philanthropists </li></ul><ul><li>Corporations </li></ul>
  15. 15. Elements of Philanthropy Program Elements Annual Giving Planned Giving Major / Capital Giving
  16. 16. Elements of Philanthropy <ul><li>Donor Pyramid – the Program Areas </li></ul>Investment Donor Contact Donor Commitment Donor Growth Annual Giving Volunteer-Led Annual Campaign Special Events, Activities Support Organizations Membership Direct Mail Acquisition / Renewal ePhilanthropy Major Giving Endowment Campaigns Capital Campaigns Major Gifts – Individual Major Gifts – Corporate/Foundation Estate or Planned Giving Bequests Planned Gifts Identification Information Interest Involvement
  17. 17. The Case Statement <ul><li>A well defined description of the need for which gifts will be sought. </li></ul><ul><li>The investment prospectus which defines GHS, its history, its services, its needs, plans and solutions. </li></ul><ul><li>The primary document which tells why someone should want to give to a worthy cause. </li></ul><ul><li>Tells healing stories through the patient’s, doctor’s, and/or nurse’s eyes. </li></ul>
  18. 18. Why You Need A Case Statement <ul><li>The source of inspiration for the philanthropy program. </li></ul><ul><li>The reference point for all volunteers – builds consensus. </li></ul><ul><li>Presents needs and proposed solutions. </li></ul><ul><li>Identifies benefits to community . </li></ul>
  19. 19. Develop a Portfolio of Opportunity: Multiple Cases for Support <ul><li>Heart Institute </li></ul><ul><li>Children’s Hospital </li></ul><ul><li>Cancer Center </li></ul><ul><li>Oncology Research Institute </li></ul><ul><li>Continuing Medical Education </li></ul><ul><li>Nursing Excellence </li></ul><ul><li>Institute for the Advancement of Healthcare </li></ul><ul><li>Success in Aging Program </li></ul>Where you start with the prospect may not be where you end— get a yes!
  20. 20. Detail Components of Philanthropy Program <ul><li>Cases for Support </li></ul><ul><li>Budget and Financial Goals </li></ul><ul><li>Volunteer Leadership and Involvement </li></ul><ul><li>Major Gifts/Development Team </li></ul><ul><li>Identified Target Markets & Prospect Research </li></ul><ul><li>Cultivation Process </li></ul><ul><li>Marketing & Communication Tools </li></ul><ul><li>Donor Recognition Program </li></ul><ul><li>Stewardship Processes </li></ul><ul><li>Evaluation Criteria </li></ul>
  21. 21. Concept of Stewardship <ul><li>Refers to the organization’s responsibility to use gifts (other’s resources) wisely and to account for those uses </li></ul><ul><li>High moral and ethical quality and responsible management </li></ul>
  22. 22. Stewardship Objectives <ul><li>Maintaining frequent contact with major or potential major donors. </li></ul><ul><li>Fostering understanding and goodwill towards GHS. </li></ul><ul><li>Ultimately helping to maintain and increase levels of giving from major benefactors. </li></ul><ul><li>Communicate how money has been used. </li></ul><ul><li>Recognize gift and Thank, Thank, Thank. </li></ul>
  23. 23. A Donor Needs To Know: <ul><li>That the gifts was received . . . and you were pleased to get it </li></ul><ul><li>That the gift was “set to work” as intended </li></ul><ul><li>That the project or program to which the gift was directed had or is having the desired effect </li></ul>Burk, Penelope, Donor Centered Fundraising , page 31
  24. 24. Estimates on Wealth Transfer <ul><li>Original estimate $10.4 trillion* </li></ul><ul><li>Revised to $41 trillion, $6 trillion to charities (2% growth/year)** </li></ul><ul><li>Could be as high as $136 trillion, $25 trillion to charities (4% growth/year) </li></ul><ul><li>* Robert Avery and Michael Rendall, Cornell 1990 (1990 to 2044) </li></ul><ul><li>** Paul Schervisch and John Havens, Boston College, Center for Wealth and Philanthropy,1998 (1998 to 2052) </li></ul>
  25. 25. The Choice is Yours <ul><li>Heirs </li></ul><ul><li>IRS </li></ul><ul><li>Charity </li></ul>What percent of your assets do you want to give to each?
  26. 26. Roles of Chief Philanthropy Officer <ul><li>Understand and interpret GHS needs based on strategic plan </li></ul><ul><li>Understand and interpret donors’ needs </li></ul><ul><li>Identify GHS priorities that may attract philanthropic support </li></ul><ul><li>Active in strategic planning to understand and influence decisions and to explain those decisions to donors and volunteers </li></ul><ul><li>Be able to report outcomes of philanthropic gifts </li></ul><ul><li>Maintain relationship between administration and donors. </li></ul>
  27. 27. Office of Philanthropy Goals <ul><li>Put relationship before $ raised </li></ul><ul><li>Make sure the donor is extremely satisfied with the gift made—more to come! </li></ul><ul><li>Make the donor feel their money was spent wisely </li></ul><ul><li>Make sure you are an efficient and effective operation </li></ul>
  28. 28. Measures of Success
  29. 29. Share the Story Seek Involvement Secure the Gift (Time, Talent, Treasure) The Simple Explanation:
  30. 30. <ul><li>The mission of the Sponsored Programs Office (SPO) at Greenville Hospital System (GHS) will be to locate outside funding sources to help support current and future programs for training, research and community outreach. </li></ul><ul><li>The SPO will be housed in the new REII building on the GMH campus. </li></ul><ul><li>The SPO will facilitate the submission, negotiation and non-financial post award processing for grants. </li></ul><ul><li>The SPO will use existing GHS personnel, where feasible, to reduce start-up costs. </li></ul>GHS Sponsored Programs Office
  31. 31. <ul><li>The financial goal will be to double the current GHS grant funding level by the end of year two, and continue an incremental increase in new and continued funding for each successive year. </li></ul><ul><li>The SPO’s goal is to be primarily funded by facilities and administration reimbursements (F&A) included in the grant budgets beginning with year four, and finally for complete self-funding through F&A by the end of year six. </li></ul>GHS Sponsored Programs Office
  32. 32. Thank You! Questions