The Dollars Aren't Coming

Rather than a pure pitch for cash, Littlejohn says Sharp's donor requests use the successful patient experiences as an example of the vital services that the hospital is providing for the community. "We ask them not so much to give, but if they would like to invest in the institution that helps take care of them, that they are partners in this," Littlejohn says. "The idea is that rather than just a fundraising organization, Sharp is a great community asset that people value and therefore they are willing to invest in it as much as they would in any important community endeavor.

"That has changed the attitude, and it is how we get through the rough times," he says. "Sure, we are going to see a few of the bigger gifts go away for a while. But we are going to continue to build our base of support because we have so many relationships that already exist in the hospital."

Sharp's emphasis on the patient experience has given rise to creative and effective gift-giving strategies. The health system's Guardian Angel program allows people to make gifts for any amount to recognize specific caregivers. The health system has raised more than $1 million over the past four years through Guardian Angels, with the bulk of the more than 10,000 gifts averaging about $100. "We begin the journey by tapping into their patient experience and gratitude. It's been incredible. We've had gifts from $10 to $300,000. We've had three physicians who've been recognized more than 100 times as Guardian Angels," Littlejohn says.

For the past five years, Sharp has offered potential donors a deferred gifts program called the Life Estate Gift Annuity, which allows some people to donate their homes to the health system and live in them for the rest of their lives. Sharp takes ownership of the home when the donors die and sells the property. "It's like a charitable reverse mortgage," Littlejohn says. "Here are people who have considerable wealth in their homes and they can use that as a gift strategy."

The annuity program is tightly drawn. Most of the candidates are more than 70 years old and have to either own their home outright, or close to it. Sharp pays the donors an annuity based on the value of the house. An older person with a house valued at $500,000, for example, might get an annual gift of up to $40,000 depending upon their circumstances. Even with the recent decline in home prices, Littlejohn says the annuity has consistently shown a good return. "The numbers have to work. It's not one of those gifts you can do with a 45-year-old person. We are not dealing with people with subprime mortgages," he says.

McGinly says hospital foundations can't simply hoist the white flag in tough economic times, nor be afraid of failure. "A lot of folks are delaying capital campaigns. The leadership and trustees out there are saying it's not a good time. Well, it's never a good time. There are always reasons for why not," McGinly says.

"You may have to modify your expectations, but you're still out there in the community. Let's say 18 months ago you could raise $50 million. That same community is not going to be able to raise that much now. But there is nothing wrong with pursing a capital campaign that is realistic. That keeps your presence in the community. So people feel as if, 'Here is our goal and if we don't make it we fail.' Well, if you walk away with $40 million instead of $50 million, have you failed?"