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Tough Economy No Excuse for Lax Fundraising

November 18, 2013

A development executive at a Maine hospital argues that a soft economy is no reason to miss fundraising goals. Chief development officers and CEOs must simply work harder to refine their strategies and solidify relationships with donors, she says.

It may be more difficult for hospitals and health systems to fundraise during tough economic times, but it is still possible. That's what one hospital executive recently told me during a conversation about philanthropy and what it takes to achieve fundraising goals when the economy is not on your side.

"You have to work smarter, and you have to work harder," says Susan Doliner, vice president of development at Maine Medical Center, a 600-bed hospital in Portland.

Doliner says when the economy is soft, healthcare development staffs have to spend more time with their major donors to shore up those relationships.

"You make more visits. Your donor relationships have to be more frequent. You have to keep them informed. Transparency is really important these days," she says. "You have to have good philanthropy in place, and it has to be sustainable and impactful. And there is nothing more important than healthcare. When the economy is bad, we have to remind people what is so important about healthcare."

Giving individual attention to each major donor is also important, Doliner says.

One Donor at a Time
"We can't do it with newspaper ads or en masse. We have to do it one donor at a time. We sit with them and talk about what their donation can support. We make those cases on a one-on-one basis, and we get their input" on how they would like to have their donation spent, she says.

"Those folks who can make the biggest difference with the largest donations always want some time with the CEO," she adds, noting that it's critical that the executive responsible for the institution's development efforts have a reporting relationship with the CEO.

"The chief development officer should always report to the CEO… They should talk about donors and strategies and tie the donors who have the most means to the strategic opportunities of the hospital. They should discuss which donors can be matched with which projects."

Hospitals also need to understand that the current generation of donors is different than those who came before them, Doliner says.

"The next generation of donors is a bit different," she says. "My father's generation was very transactional, but now donors want to see a business plan and an RFP. They want the details, the measurable impact. It's up to us to show them that, and not just thank them for their money."

Building Lifelong Relationships
Although the new breed of major donors may require a bit more maintenance, spending the time to develop long-term relationships is well worth it, Doliner says.

"The most important measure is not just your ROI, which is how much you are raising in response to the amount you are spending, but that it becomes a lifetime return. That person's gift to me today is important, but I also want to know that they'll make a gift next year and the year after that. It's about building a lifetime relationship," she says.

In addition to the slow economy, fundraising efforts are also not helped by the political firestorm surrounding the Patient Protection and Affordable Care Act and the often misleading statements made about healthcare reform by politicians and pundits, Doliner says.

"I think a lot of people believe they are going to lose their ability to make choices and not get the tests they need, and that's not true. There are things that are good about ObamaCare, and there are things that are going to challenge us. We can't be everything to everybody. My generation, we expect things in an instant, and it's hard to swallow the idea that you may have to wait a week for an appointment or test," she says.

"From a philanthropy perspective, we need to really hone our message and make the point that we can't stand still. We all want innovation; that is what America is about."

Don't Blame the Economy
Above all, Doliner believes that the challenges healthcare development departments are currently facing should not be used as justification for poor performance.

"We can't use the economy as an excuse. There are so many people out there who have resources. They may have less, but they are still caring, and they are still donating, so why not to us?… If we use the economy as an excuse, we're not doing our jobs," she says. "Healthcare is a cornerstone of all our communities, and it shouldn't be hard to do this fundraising. It's our job to make sure it's done with a loyal constituency and that there is continuity."

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