Donors Hike Support for Canadian Hospitals to More than $1.2 Billion, But Giving is Still Short of Pre-recession Levels

WASHINGTON, Sept. 19, 2011 /PRNewswire-USNewswire/ -- Donors to Canada's health care institutions increased contributions by $80 million last year, but the much needed financial booster shot remained far below amounts raised before the recession hit. While charitable cash and pledges in FY2010 totaled $1.204 billion, 7.1 percent more than in FY2009, they were $133 million less than the total of funds raised in FY2007.

According to the FY2010 AHP Report on Giving-Canada issued today by the Association for Healthcare Philanthropy (AHP), fiscal year 2010's improved economy enabled Canadian hospitals, medical centers, and other health care facilities to climb out of a philanthropic valley carved out by the recession's negative economic forces in 2008, when giving dropped to just $1.068 billion.

"We need to do more, but the trend is in the right direction," says Jory Pritchard-Kerr, FAHP, AHP's incoming regional director for Canada and executive director, Collingwood General & Marine Hospital Foundation in Collingwood, Ont. "Improved fundraising is providing more up-to-date equipment for our hospitals, more money for construction and renovation, and more resources for research, teaching and general operations."

The vast majority of donors are individuals whose combined donations accounted for almost three out of every five dollars raised in FY2010.  "Community support and the generosity of grateful patients are especially important," Pritchard-Kerr notes.

Businesses, including corporate foundations, gave 28 percent of the total funds raised.  Other types of foundations contributed 7 percent.

The Report on Giving shows that since the pre-recession days of 2006, Canadian health care fundraisers have decreased their reliance on raising large amounts of money for specific projects in a limited amount of time. Such capital campaigns accounted for more than 31 percent of all philanthropic activity on behalf of Canadian hospitals in 2006, but comprised only 13.4 percent of such endeavors last year.

The FY2010 report indicates more emphasis is being devoted to raising money through major gifts, planned giving, and special events.  Annual giving campaigns remain a mainstay of fundraising.  

Fundraisers also saw improved productivity in FY2010, as the cost to raise a philanthropic dollar dropped to 28 cents, down from 34 cents a year earlier.  On average, they were able to bring in $3.56 for every dollar of fundraising expenses last year, 65 cents more than in FY2009.

The Report on Giving is based on a survey of Canadian health care institutions affiliated with the Association for Healthcare Philanthropy, a not-for-profit organization established in 1967 whose 5,000 members direct philanthropic programs in 2,200 of North America's 3,400 nonprofit health care providers, including 210 in Canada.  

Survey results released in June 2011 for the U.S. indicated that philanthropic fundraising by nonprofit health care institutions totaled $8.264 billion in fiscal year 2010, up from $7.644 billion in FY2009, but still below the $8.588 billion raised in FY2008.  Giving patterns are similar in the U.S. and Canada, with individual donors accounting for most contributions and most money raised, however, U.S. hospitals and health care systems devote a smaller portion of donated dollars to buying equipment and a larger portion to physical plant improvements than their Canadian counterparts.

A copy of the AHP Report on Giving Fact Sheet is available for free on the AHP website at www.ahp.org/reportongivingcanada. The complete report is available for a fee, or for free to AHP members who completed the survey.

SOURCE Association for Healthcare Philanthropy