Successful Grateful Patient Fundraising Programs: Practical Steps for Tapping the Fastest Growing Donor Segment in Healthcare

Transcription

1 Successful Grateful Patient Fundraising Programs: Practical Steps for Tapping the Fastest Growing Donor Segment in Healthcare GG+A Webinar Series July 1, 2010 July 1, 2010 Dan Lowman Senior Vice President Grenzebach Glier and Associates

2 Welcome to GG+A s Webinar Series Dan Lowman Senior Vice President, Philanthropic Analytics Joined GG+A in 2000, working primarily in the areas of analytics, research, prospect management, and program implementation Has worked directly with 11 of the 21 Honor Roll hospitals in 2009 U.S. News & World Report Best Hospitals listing (GG+A has worked with 17 of the 21) Has assisted in implementation of grateful patient programs at institutions ranging from elite medical centers to start-up programs at community hospitals Page 1

3 Grenzebach Glier and Associates Why do we need Grateful Patient Programs?

4 2008 Contributions to Healthcare Institutions Funds Raised by Type of Donor: $8.6 Billion Foundations Other 3% 2% Corporations $0.17 $ % $0.86 Individuals 85% $7.31 Source: AHP Report on Giving FY2008 *Other = Hospital auxiliaries, public agencies, civic groups, etc. Page 3

5 2008 Contributions to Healthcare Institutions Type of Individual Donors Patients 21% Other 11% Community Support 39% Physicians 5% Employees 19% Board Members 5% Over the last 10 years, patients are the only segment that is increasing their share of giving Page 4 Source: AHP Report on Giving FY2008

6 Why do we need Grateful Patient Programs? Most healthcare giving comes from individuals Patients are not corporations or foundations Patients represent an increasingly large share of healthcare philanthropy No one understands the services you provide better than your patients they have the greatest stake in your success, for themselves and their communities Page 5

7 Grenzebach Glier and Associates Characteristics of Successful Programs

8 Patient Fundraising Programs: Characteristics of Successful Programs Key characteristics of successful patient fundraising programs: A distinct but integrated fundraising initiative Timely, analytically sound information data driven Hospital experiences supporting continued contact Full endorsement and support of leadership Engaged (select) physicians Page 7

9 Integrated Fundraising Initiative Operates as a distinct fundraising initiative in a wellrounded development program: Dedicated resources Staffing Program budget Infrastructure/systems support Materials Research Prospect Management Stewardship Promoted visibility and recognition Page 8

10 Data-Driven Supported by timely, analytically sound data: There are a lot of patients, and you can t write to or visit all of them therefore a prospect identification process is required Prior relationship VIP lists Wealth indicators (wealthy ZIPs, PRIZM, Echelon, etc) Wealth screening Frequency appropriate to volume and activity daily, weekly, monthly (timely) Clear and supports scaling donor potential (ratings, target ask) Managed easily and quickly Page 9

11 Data-Driven Timing is Everything Bad idea: Ask for a gift while a person is lying in a hospital bed, has been sitting in your waiting area for 2 hours, etc. But time is limited the vast majority of first-time patient gifts come within 18 months of an in-patient visit In-hospital visits? Post-discharge mailings? Events throughout the year? Online interaction? A combination? Page 10

12 Good Patient/Patient Family Experiences Experiences with patients/patient families to encourage contact beyond their medical interactions. Anchored around: Genuine Concern Personal Connections (at several levels) Communications (relevant and strategic) Communications (again and again) Press Ganey Scores correlate directly to philanthropy Page 11

13 Grenzebach Glier and Associates Leadership and Physician Engagement

14 Obstacles and Objections to Engagement: Leadership and Physicians Actual comments made about patient fundraising: It s unseemly HIPAA won t let us. I m not in sales, that s what the development staff is for We don t treat anyone who has money to give. No one makes gifts in this economy. I don t have time for this. Page 13

15 Obstacles and Objections to Engagement: Leadership and Physicians What they really mean, but (usually) don t say: I don t want to appear to be pandering I don t want to be rejected I hate to be told no I don t want to fail I really don t understand fundraising and I don t know how it s done Page 14

16 Engagement: Leadership Making the Case to Leadership: Actions are guided by reliable data Support big idea-big gift thinking (advisedly) Supported by exceptional preparation Education about the process provided Creative thinking to the process encouraged Successes are recognized Page 15

17 Engagement: Physicians Making the Case to Physicians: Relevant to their needs Clear about the benefits Initiative is respectful but not deferential Recognize and acknowledge successes Reasoned approach vis-à-vis Stat! Appropriate education about the process Page 16

18 What s Needed The CEO fully on board (it all starts here) Reasonably clear benefits associated with the effort A formal or informal physician advocacy/champion group Start small and work up Consider a similar group for nurses Realistic expectations of what the CEO, as well as physicians, can do Page 17

19 What s Needed Realistic, analytically sound basis for projecting outcomes Being clear and firm, but flexible must be available as well as persistent An ongoing plan to express appreciation for the partnership and outcomes Ongoing process to explain fundraising A REALLY good orientation/training program for the CEO and physicians (customized) Page 18

20 Key Considerations Grenzebach Glier and Associates

21 Key Considerations Budget and staffing Who will meet with prospects? Who will collect the patient information for visits or mailings? Who will manage the information flow? Defining who is a patient prospect In-patient/out-patient Age, confidential service, frequency of visits, etc Data and Technology issues Where will you get patient lists, room numbers? Where will you store information? Page 20

22 Key Considerations Compliance HIPAA Risk Management Opt-in/Opt-out Data Security If you are handling patient data even just their names and addresses, you need to have security that is at least as strong as the patient admission and EMR systems Page 21

23 Grenzebach Glier and Associates Implementing a Grateful Patient Program

24 One Medical Center s Journey Spring 2006: Solicited first list of inpatients based on select criteria Fall 2006: Refined criteria and hardwired production and distribution of a monthly mailing list; began monthly inpatient solicitation program Developed opt-out process for solicitation mailings Assessment of benefits by HIPAA office and general counsel Spring 2008: Discussions began to create a comprehensive patient mailing list Summer/Fall 2008: Briefed HIPAA office, senior management, and general counsel Page 23 23

25 One Medical Center s Journey Winter : Project delayed due to implementation of electronic medical records Spring 2009: Outpatient list criteria developed and list management and screening process tested Summer 2009: First comprehensive patient list created and solicited Included in- and out-patients and selected criteria that excluded patients after first visit, certain departments, those who opted out, and who are current prospects and donors Summer 2010: Conduct HIPAA and legal compliance audit Page 24

26 Sample Grateful Patient Engagement Flowchart Daily inpatient file received from Hospital Uploaded into Wealth Screening Website Development Research Reviews / Validates High Capacity names matched against donor database Information provided to MGO, MGO visits on unit CEO letter mailed 3 weeks after discharge MGO assigned and attempts to Contact six weeks post stay If MGO visit is declined Annual Giving Process begins Names flagged as VIP in patient system Page 25

27 Development Office Protocols in the Process: Data Triage Sample Deployment $500,000+ $100,000 to $499,999 $25,000 to $ $10,000 to $25,000 Personal drop-by visit from hospital executive of the day * * = contact report required Personal drop-by visit by the Foundation executive of the day * * = contact report required Personal drop-by visit by the Foundation officer of the day * * = contact report required Personal phone call to room from Foundation officer Below $10,000 Triaged to Annual Fund (unless other data recommends otherwise) Page 26

28 Outcomes Grenzebach Glier and Associates

29 Hospital 1: New Program, Annual Giving Only Annual Funds (6 months of results) Individuals solicited = 11,919 Gifts (#)= 120; response rate = 1.00% Gifts ($) = $25,446; average gift = $212 overall For months when only higher-rated prospects were solicited: Ask was $1,000» Average gift was $1,218 ROI = 41% ; cost of materials and mailing = $18,070 Recently received additional $10,000 memorial gift from a family who made a gift earlier this year Page 28

30 Hospital 2: Established Program with Major Gift Initiative 1 gift of $ gift of $ pledge of $1000 over 5 years 1 estate gift of 1/9 of estate Area 1 Area 2 1 pledge of $10,000 per year- unrestricted 1 Proposal for $50,000 endowment via planned gift 1 Proposal for $50,000 1 pledge of $50,000 payable over 5 years- unrestricted 1 gift of $75,000 for a lectureship 1 gift of $25,000 unrestricted 2 proposals in process of being developed 1 proposal for $100,000 Charitable Gift Annuity 1 $100,000 life insurance designation Area 3 Area 4 Area 5 Area 6 Area 7 Unrestricted 1 gift of $ $50,000 endowment from a planned gift 1 $10,000 unrestricted gift 1 gift of $1,500 1 gift of $10,000 1 proposal for $100,00 Charitable Gift Annuity Results for Quarters Page 29

31 In Conclusion Patients represent a growth opportunity A grateful patient program isn t simple it s not just about wealth screening or direct mail Formal programs are still new, and the jury is still out on long term major gift viability But the logic is sound, and the risk of doing nothing is relying on general acquisition and hoping for referrals Track your results! We will all learn from your efforts Page 30

32 Questions? Grenzebach Glier and Associates

33 Contact Us Dan Lowman com Page 32