Donations to U.S. nonprofit hospitals up slightly in 2016

Gifts, pledges and grants to nonprofit hospitals in the United States went up by 0.2 percent in 2016, totaling $9.6 billion, according to a report from the Association for Healthcare Philanthropy (AHP).

The group’s annual reporting on giving covered both the U.S. and Canada, where donations overall decreased by $82 million to just above $11 billion. Canada’s donations took a tumble for the second straight year, falling by 6.8 percent to $1.39 billion.

"We are also seeing the effects of a change in the way in which younger generations are engaging in healthcare philanthropy. As peer to peer fundraising increases, traditional healthcare philanthropy will need to make the case to younger generations that they are good stewards of healthcare dollars,” said Veronica Carroll, MBA, CEO of the Children's Health Foundation of Vancouver Island.

U.S. nonprofits were slightly more efficient in raising money than their Canadian counterparts. According to the report, it cost 23 cents to raise each dollar for a U.S. nonprofit hospital, two cents lower than 2015, with Canada’s cost-to-raise-a-dollar going up to 24 cents.

Despite the slight differences between the countries, AHP framed 2016 as a positive year for nonprofit hospital fundraising.

"It's significant that giving stayed above $11 billion in 2015, continuing a positive trend we saw in 2014," said Steven W. Churchill, president and chief executive officer of AHP.

The latest outlook report from Moody’s Investor Service projected U.S. nonprofit hospitals and health systems would remain in stable financial condition in 2017, despite uncertainties caused by the recent election results.