Docstoc

Executive Summary

Document Sample
Executive Summary Powered By Docstoc
					Philanthropic Giving Index December 2008 Health Subsector

Sponsored by The Association for Healthcare Philanthropy

We gratefully acknowledge The staff of the Center for Survey Research at Indiana University For survey administration and coding of data

Philanthropic Giving Index December 2008 Health Subsector
Executive Summary The Health Philanthropic Giving Index reached an all time low of 66.2 in December of 2008. Development professionals from health care organizations reported the worst external fundraising climate since the study began in the summer of 1998. Fundraisers from health were a bit more optimistic about the next six months However, the Expectations Index was also at an all time low of 70.1. Health care fundraisers are only slightly more optimistic than their peers working in other types of organizations. Key Findings from the December 2008 PGI – Health Subsector The PGI for the health subsector reached an all time low of 66.2, a 21.7 percent decrease from just six months ago and a 30.2 percent decrease from one year ago. Health fundraisers, however, are still reporting strong internal support for fundraising, with 93.8 percent reporting good or excellent internal support and nearly 93 percent of health fundraisers reporting good or excellent volunteer involvement in their fundraising. Nearly all, 90.5 percent, of development professionals working in health organizations reported the economy is having a very negative impact on fundraising. While 76.2 percent of health care development professionals predict the economy will have a very negative impact on fundraising six months from now, 19 percent predicted the economy will have a very positive impact six months from now. For donors who gave in total less than $1,000 to health, 38.1 percent of health fundraisers said those donors’ giving remained the same, while 28.6 percent said it increased, and 28.6 percent reported their giving decreased in the past year. For donors who gave in total more than $1,000, over 40 percent of health fundraisers reported those larger gift donors’ giving stayed the same, while 38.1 percent said their giving actually increased this past year. Fundraisers in health saw almost no change in the timing or payment of pledged donations this past year and very few saw changes in the giving of assets. For over 70 percent of health organizations the IRA charitable rollover has not caused any change in their fundraising over the past year. However, 23.8 percent did report that the IRA charitable rollover provision increased their organization’s fundraising this past year and 42.9 percent expect the provision to increase their fundraising in the next six months. About the Philanthropic Giving Index - Health Subsector The Philanthropic Giving Index is a semiannual study of the climate for philanthropic giving and fundraising in the United States. It is similar to the Consumer Confidence Index, only for charitable giving. The current round of the PGI survey was sent to 405 development executives of nonprofit organizations and fundraising consultants in November and December of 2008. The panel was chosen to represent a cross-section of nonprofit organizations in terms of subsectors (e.g., health, education, or arts organizations), revenue size, and donor base. The health subsector was represented by fundraisers from a variety of health care nonprofit organizations. These organizations were selected to represent a range of health care organizations, which included hospitals, clinics, rehabilitation centers, hospices, long-term care 2

facilities, medical research, organizations related to a specific disease, and other health organizations. There were 68 health fundraisers on the panel. The response rate to the survey was 39.8 percent. As with the Consumer Confidence Index, several indexes are produced from the PGI survey. The Philanthropic Giving Index is the overall assessment of the fundraising climate in the United States. The Present Situation Index reflects professional fundraisers’ view of the current fundraising climate. The Expectations Index indicates how the panel of fundraisers thinks the philanthropic climate will be in the next six months. These indexes range from 0.0 to 100.0, with higher scores indicating more positive or optimistic attitudes towards the climate for giving in the United States. Table 1 lists the indexes for the December 2007 round of the survey for the total panel and for the health subsector.

Table 1 Indexes of the Total Panel and Health Subsector, December 2008
Total Panel Change Change Since Since Sum. ‘08 Dec. ‘07 -21.7% -22.2% -21.2% -27.0% -27.8% -26.3% Health Subsector Change Change Dec. Since Since 2008 Sum. ‘08 Dec. ‘07 66.2 62.2 70.1 -21.7% -28.9% -13.9% -30.6% -34.6% -26.3%

Dec. 2008 Philanthropic Giving Index (overall assessment of climate for fundraising) Present Situation Index (assessment of current climate for fundraising) Expectations Index (assessment of fundraising climate in the next 6 months) 64.8 63.6 66.1

Detailed Findings for the December 2007 Philanthropic Giving Index – Health Subsector The Philanthropic Giving Index for the Health subsector reached an all time low of 66.2 in December of 2008. This is a 21.7 percent decrease from just six months ago and a 30.2 percent decrease from one year ago. Fundraisers from health report the worst external fundraising climate since the study began in 1998. The Present Situation Index for Health was 62.2, slightly lower than that of the total panel. The PSI hasn’t been this low since the summer of 2003, when the PSI for Health was 60.7. In December of 2008, the Expectation Index for Health was 70.1, a 13.9 percent decrease from six months ago and a 26.3 percent decrease from one year ago.

3

Figure 1 illustrates the three main indexes, the PGI, PSI, and EI for the health subsector since 1998, when the study began. All three indexes drop dramatically in the second half of 2008, continuing a trend from their high in the summer of 2007. The PGI for the entire panel, the PGI for the Health subsector and the EI all reached their lowest levels. The PSI for health was only slightly higher than it was in the summer of 2003.

Figure 1: Main Indexes, Health Subsector
100 90 80 70 60 50 40 30 20 10 0

er 98

er 99

er 00

er 01

er 02

er 03

er 04

er 05

er 06

er 07

m

m

m

m

m

m

m

m

m

m

Su m

Su m

Su m

Su m

Su m

Su m

Su m

Su m

Su m

Su m

Philanthropic Giving Index Expectations Index

Present Situation Index Overall Philanthropic Giving Index

Effectiveness of Solicitation Techniques As shown in Figure 2, health fundraisers reported much more success with major gifts than the total panel (85.7 and 73.1 percent, respectively). Further, health fundraisers reported much more success with special events than the total panel (80.6 and 69.2 percent respectively). Planned giving remains the third most successful fundraising technique for health organizations. Statistically significantly more fundraisers in health are reporting success with corporate gifts than their peers working in other organizations. On the other hand, statistically significantly fewer are reporting success with e-mail solicitations than other fundraisers working in other organizations.

Su m

m

er 08

4

Figure 2: Percentage of Respondents Who Rated Fundraising Techniques as Currently Successful or Somewhat Successful, December 2008
E-mail Internet Telephone Corporate Gifts Direct Mail Foundation Grants Planned Giving Special Events Major Gifts 0 20
Health

25.9 10.0 32.9 28.6 45.7 35.0 41.7 61.9 61.4 66.7 65.3 66.7 72.9 71.4 69.2 73.1 40 60 Percentage
Total Panel

80.6 85.7 100

80

Figure 3 shows the percentage of fundraisers who predicted success with various fundraising methods six months from now. Similar to previous waves the PGI study, health fundraisers are statistically significantly more optimistic about their future success with special events than their peers six months from now. Telephone and email solicitations are predicted to be the least effective methods for health care fundraisers six months from now. Fundraising professionals in the health subsector predicted more success six months from now than the total panel for major gifts, special events, direct mail, and corporate gifts.

5

Figure 3: Percentage of Respondents Who Predicted Fundraising Techniques Will Be Successful or Somewhat Successful in Six Months December 2008
Telephone E-mail Internet Foundation Grants Corporate Gifts Direct Mail Planned Giving Special Events Major Gifts 0.0
57.6 81.0 71.7 81.0 35.9 15.4 35.0 28.6 38.0 38.1 42.8

47.6 45.0 47.6 53.8 57.1 76.6 76.2

10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Percentage

Health

Total Panel

The Economy Based on several indicators, the National Bureau of Economic Research announced on November 28, 2008 that the U.S. economy had been in recession since December 2007. During the third quarter of 2008, economic output contracted at an annual rate of 0.3 percent (Bureau of Economic Analysis, 2008). Certain segments of the economy, particularly those associated with giving, such as stock market values and corporate profits, have declined to levels last seen in 2002 (Standard & Poor’s 500 Index) or 2005 (corporate profits). At the close of November 2008, the Standard & Poor’s 500 Index decreased nearly 30 percent since July of 2008. In addition, the civilian unemployment rate increased from 5.7 in July to 6.7 in November. The Consumer Confidence Index (CCI), which is reported monthly by The Conference Board, declined from 51.9 in July of 2008 to 44.9 in November indicating consumers are less confident. All of these factors influence the fundraising climate for U.S. The December of 2008 Philanthropic Giving Index survey asked a series of questions about how the economy was impacting fundraising. Figure 4 shows the changes in giving by two groups of donors: those who gave in total less than $1,000 and those who gave in total more than $1,000. For donors who gave in total less than $1,000 to health, 38.1 percent of health fundraisers said those donors’ giving remained the same, while 28.6 percent said it increased and 28.6 percent reported their giving decreased in the past year. The findings are different, however, for donors who gave in total more than $1,000. Over 40 percent of health fundraisers reported those larger 6

gift donors’ giving stayed the same, while 38.1 percent said their giving actually increased this past year. No fundraisers in health reported strong increases in giving in the past year from either category of donor.

Figure 4: Percentage of Health Fundraisers Reporting Changes in Giving In the Past Year
42.9 38.1 38.1

28.6

28.6

14.3

4.8 0.0 Donors that gave in total less than $1,000

4.8 0.0 Donors that gave in total more than $1,000

Strongly decreased

Decreased

Stayed the same

Increased

Strongly increased

Vast majority of fundraisers from health reported that payment of pledges on their scheduled date virtually stayed the same this past year and further they expect the timing of pledge payments to stay the same in the next six months (80 percent respectively).

7

Figure 5: Percentage of Health Fundraisers Reporting the Change in Payment of Pledges on Scheduled Date
80 80 Past Year Six Months From Now

15 10 0 0 Decreased Stayed the same Increased 10 5 0 0

Strongly decreased

Strongly increased

The December 2008 study also asked about the full payment of pledged amounts. Similar to the timing of pledge payments, the vast majority of health fundraisers reported that in the past years the payment of full pledged amounts has stayed the same and they expect it to stay the same in the next six months.
Figure 6: Percentage of Health Fundraisers Reporting the Change in Payment of Full Pledged Amounts
90.0 85.0 Past Year Six Months From Now

10.0 10.0 5.0 0.0 0.0 Decreased Stayed the same 0.0 Increased 0.0 0.0

Strongly decreased

Strongly increased

8

Some health fundraisers, 30 percent, reported a decrease in the giving of assets this past year. However, 60 percent reported no change in the donation of assets. The same percentage of fundraisers (60 percent) expects donations of assets to remain the same in the next six months.

Figure 7: Percentage of Health Fundraisers Reporting the Change in Giving of Assets

60.0 60.0

Past Year Six Months From Now

30.0 25.0

10.0 10.0 5.0 0.0 Strongly decreased Decreased Stayed the same Increased 0.0 0.0

Strongly increased

As with the previous waves of the Philanthropic Giving Index study, respondents were asked about the impact of the Individual Retire Account (IRA) Charitable Rollover provision, which allows individuals who are 70 ½ to make charitable gifts from their IRA without a tax penalty. For over 70 percent of Health organizations the IRA charitable rollover has not caused any change in their fundraising over the past year, and 57.1 percent do not expect a change in the next six months. However, 23.8 percent did report that the IRA charitable rollover provision increased their organization’s fundraising this past year, and 42.9 percent expect the provision to increase their fundraising in the next six months.

9

Figure 8: Percentage of Health Fundraisers Reporting the Impact of IRA Charitable Rollover
71.4

Current Year
Six Months From Now 57.1

42.9

23.8

4.8 0.0 0 0.0 0.0 Stayed the same Increased 0.0 Strongly increased

Strongly decreased

Decreased

Other Major Outcomes Fundraisers from health are reporting a very poor external fundraising climate for the U.S. Health fundraisers, however, are still reporting strong internal support for fundraising, with 93.8 percent reporting good or excellent internal support. Volunteer support is also strong. Nearly 93 percent of health fundraisers reported good or excellent volunteer involvement in their fundraising. Development officers from health organizations expect this internal and volunteer support to be strong in the next six months, despite the expected poor external fundraising climate. Nearly all, 90.5 percent, of development professionals working in health organizations reported the economy is having a very negative impact on fundraising. While 76.2 percent of health care development professionals predict the economy will have a very negative impact on fundraising six months from now, 19 percent predicted the economy will have a very positive impact for the same period. The economic conditions haven’t impacted the percentage of health organizations involved in capital campaigns. Just over 38 percent of fundraisers from health care organizations reported being involved in a capital campaign, which is very normal for health organizations.

10

For further information please contact: Heidi Frederick The Center on Philanthropy at Indiana University 550 West North Street, Suite 301 Indianapolis, IN 46202-3272 (317) 278-8983 hkbaker@iupui.edu http://www.philanthropy.iupui.edu

11


				
DOCUMENT INFO