strategies maximize

Strategies for Maximizing Philanthropy(The State of Health Care Philanthropy): 

Strategies for Maximizing Philanthropy (The State of Health Care Philanthropy) Association for Healthcare Philanthropy 37th Annual International Conference San Francisco - October 4, 2003 Jim A. Rice, Ph.D. William C. McGinly, Ph.D., CAE Partner President, Chief Executive Officer The Governance Institute Association for Healthcare Philanthropy La Jolla, CA Falls Church, VA

Governance Institute Poll2003: 

Governance Institute Poll 2003 Donations have not dropped Concern for 2004 Philanthropy has become more important over past three years More CEO involvement

Key Findings - GI Poll: 

Key Findings - GI Poll The amount of funds raised in the last fiscal year averages $4.6 million. Amounts for the fiscal year ranged from $15,000-$60 million. Hospital or health system board members are not required to donate to the foundation. There is some expectation that boards members help in fund raising.

Key Findings - GI Poll: 

Key Findings - GI Poll The average size of the foundation board is 21 There is little or no overlap between the hospital or system board and foundation board Hospital and system CEOs are devoting more time to fund raising

Overlapping Board Membershipn=134: 

Overlapping Board Membership n=134

Hospital/System CEO Membership on the Foundation Boardn=137: 

Hospital/System CEO Membership on the Foundation Board n=137 Hospital/System CEO a Voting Member of the Foundation Board n=108

Change in Importance of Philanthropy Over the Past Three Years: 

Change in Importance of Philanthropy Over the Past Three Years

CEO’s Fund-raising Responsibilities/Demands Over the Past 3 Years Have ...: 

CEO’s Fund-raising Responsibilities/Demands Over the Past 3 Years Have ...

Key Findings - GI Poll: 

Key Findings - GI Poll Three most valuable fund-raising activities are: capital campaigns deferred giving programs annual gala dinner dance

Valuable Fund-raising Activitiesn=151: 

Valuable Fund-raising Activities n=151

AHP SurveySeptember 2002: 

AHP Survey September 2002 When asked how their overall giving compared to this time last year, 47% reported it as the same or less, 53% reported that it was higher than this time last year. Those that reported it as less, cited the state of the economy as the reason. Better = Capital Campaign!

Donation Amounts - AHP: 

Donation Amounts - AHP

Philanthropy Efforts - AHP: 

Philanthropy Efforts - AHP

Staff Size - AHP: 

Staff Size - AHP

How to Maximize Philanthropy in the 21st Century: 

How to Maximize Philanthropy in the 21st Century Grounded in charitable purpose Bold strategies Strong leadership “Back-to-basics” Strategic contributions Sensible partnering ROI

Intra-industry Tensions: 

Intra-industry Tensions

Five Current Strategies: 

Five Current Strategies Be aware of how a changing economy will affect your donors. Consider how war will affect giving. Stay abreast of the Administration’s tax legislation and economic stimulus plan. Stay current on the latest legislation pertaining to the Health Insurance Portability and Accountability Act (HIPAA) Reconnect with and stay in touch with your donors — now more than ever.

Practical Philanthropy: 

Practical Philanthropy Annual Fund Drive Special Events Deferred Giving Grant making

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? Staff does not sufficiently educate or brief the board about the community or the work of the organization Staff complains about lack of board participation, but rarely asks for real input and counsel before making decisions

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? There is a lack of clear and ongoing communication from the staff about plans and progress of the foundation There is a lack of clear focus on the purpose of the foundation

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? Staff glosses over problems, and even withholds bad news, but the board wants to receive and discuss all problems Staff works with those they consider to be the “good” board members

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? Staff surprises board with bad news or some new campaign Staff does not really involve the board in strategic planning Staff has only ineffective solicitation strategies for the “big asks”

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? Staff tries to do all the work and only reports to the board later Staff is not up front with board members about responsibilities and duties

What Frustrates the Board about Staff Behavior?: 

What Frustrates the Board about Staff Behavior? Staff wastes board members’ time Staff does not allow enough time for careful and thoughtful decision making

What Frustrates the Staff about Board Behavior?: 

What Frustrates the Staff about Board Behavior? Board members do not do what they said they would in a timely manner Board tries to meddle Poor attendance at meetings Board unable to make decisions

What Frustrates the Staff about Board Behavior?: 

What Frustrates the Staff about Board Behavior? There is not consistent leadership within the board Board does not plan for its regeneration through careful recruiting and new board member orientation

What Frustrates the Staff about Board Behavior?: 

What Frustrates the Staff about Board Behavior? Members bring too many personal agendas to board Some members do not commit the time to get smart on plans and priorities Board members do not ask the hard questions

What Frustrates the Staff about Board Behavior?: 

What Frustrates the Staff about Board Behavior? Some board members publicly criticize the organization and its administration, but do not offer constructive solutions Members do not give enough time, talent or treasure

What Frustrates the Staff about Board Behavior?: 

What Frustrates the Staff about Board Behavior? Members do not come to board meetings prepared Board members are inaccessible Board members get bogged down in details Board members communicate poorly with staff

10 Solutions: 

10 Solutions 1. Board and staff must openly participate in the development of the foundation’s strategic mission and vision, and then define clear actions and accountabilities for all to get the plans implemented well and expeditiously.

10 Solutions: 

10 Solutions 2. Board members must have clear job descriptions that define the importance of their involvement and exactly what that involvement needs to be.

10 Solutions: 

10 Solutions 3. Boards need good continuing education and orientation about health field and philanthropic challenge. 4. Staff needs clear job descriptions and performance reviews.

10 Solutions: 

10 Solutions 5. Communication must be clearer, more open and honest, more frequent, and of higher quality. 6. Board and staff need mutual respect and must be willing to ask each other questions in non-threatening ways.

10 Solutions: 

10 Solutions 7. All need to avoid surprises that frustrate sound planning and working relationships. 8. Board meetings and materials must be streamlined and made more interesting.

10 Solutions: 

10 Solutions 9. Everything the board and staff do should be focused on what is good for the patients, community and attractive to donor partners. 10. Staff needs to spend more time doing one-on-ones with each board member during the year.

Foundation Board—Staff RelationshipsIn a Nut Sell: 

Foundation Board—Staff Relationships In a Nut Sell Joint participation in the development of the foundation’s strategic mission and vision. Clear job description for board members and for staff (clear expectations) Clear, open, honest, frequent, high-quality, meaningful communication. Mutual Respect (trust & confidence) Focus on what is good for patients, the community, and what is attractive to donor partners.

Sources of Personal Credibility: 

Sources of Personal Credibility Knowledge/Experience (know what you are talking about) Dynamic/Enthusiastic Present information without Bias Objective (see more than one perspective) Sensitive to needs/moods of others

Sources of Personal Credibility: 

Sources of Personal Credibility Listen with interest Follow through on promises Admit when wrong or doesn’t know Disagree without being disagreeable Sense of humor

McGinly’s Rule for Survival In Difficult Economic Times: 

McGinly’s Rule for Survival In Difficult Economic Times I have seen the truth and it makes no sense.

The Governance Institute6333Greenwich Drive, Suite 200San Diego, CA 92122Toll Free (877) 712-8778Telephone (858) 909-0811Fax (858)909-0813www.governanceinstitute.com: 

The Governance Institute 6333Greenwich Drive, Suite 200 San Diego, CA 92122 Toll Free (877) 712-8778 Telephone (858) 909-0811 Fax (858)909-0813 www.governanceinstitute.com

Strategies to MaximizeThe Power of Philanthropy:Raising the Bar. Lowering the Excuses : 

Strategies to Maximize The Power of Philanthropy: Raising the Bar. Lowering the Excuses AHP San Francisco October 2003 James A. Rice. Ph.D. Vice Chairman The Governance Institute San Diego California

How can Philanthropy Make a Difference in Unforgiving Markets?: 

How can Philanthropy Make a Difference in Unforgiving Markets? What can you do to strengthen your leadership?

Reality Philanthropy: Big Paradoxes: 

Reality Philanthropy: Big Paradoxes Never more money, never more competition; More money flow, more strings attached; Those willing to “Do the Ask”, need more “care and feeding” Painful parallels to political fundraising, large base of small donors, affinity clubs for the high rollers Bottom line? More sophistication, more infrastructure, more assertiveness, more humanized stories, longer views, bolder visions, sharper focus on board development. Stories trump strategy!

Philanthropy’s high calling ...: 

Philanthropy’s high calling ... “…there can be no social order if community interest does not come before selfish pursuits …” “… we help finance the building of dreams … for those we may not even know..” Michael G. Downes Australia in AHP Journal, Spring 1999

Overview of Remarks:: 

Overview of Remarks: Challenges for “P” Leaders Why Health Systems are in trouble… How “The New Philanthropy” can help The importance of “Governance” to enable, empower, and energize “P”

Philanthropy Challenges for  Board & Staff Leaders: 

Philanthropy Challenges for Board & Staff Leaders “ … we’ll need to work harder, smarter, and more creatively … in a rapidly changing health care environment …” William C. McGinly AHP President & CEO

Context Paradox ...: 

Context Paradox ... Opportunity … Stronger economy …so far: stock market up unemployment down inflation stable consumer confidence up Intergenerational wealth transfer: $8-10Trillion Threat … Competition: 50% more charities; more advisors on wealth transfer Noise in community; Donors … more discerning more results/issue oriented more self-interest, less unrestricted more wary more accountability

Hospital Tensions:: 

Hospital Tensions: Hospitals image too big, too businesslike, too costly Forgotten heritage of volunteerism Competition among programs CEOs and Board’s “Lip Service” not “Check Service” Internal players not educated about role of philanthropy Weak patient/donor record systems

System Tensions:: 

System Tensions: Relations to donors characterized by Confusion/Competition/Costly Egos of Fund Raisers & Local Boards System too Impersonal, lacks stories System image not well positioned as healer, but big business Systems too new for image stability?

What are Critical Success Factors forNew Venue Health Systems ?: 

What are Critical Success Factors for New Venue Health Systems ? Still exploring Integration of Delivery and Financing Integration of Physicians (means of production, but competitive) Highly accessible continuum of care, multiple access points & decentralized PCPs New Accountability…safety of patients and health status of defined populations High quality, cost-effective care via integration of providers of similar & disparate philosophies of care (even alternative medicine) Physicians in all levels of planning and governance New system of Integrated Governance

How can “The New Philanthropy” help respond to New System challenges?: 

How can “The New Philanthropy” help respond to New System challenges? What is “The New Philanthropy”? Where are the leverage points for maximizing “P’s” contributions? What are the prerequisites for optimal “P’s” contribution? Remember the “Power of 20/1”

The Physics of Philanthropy...7 variables to manage: 

The Physics of Philanthropy... 7 variables to manage Donor Support 1 2 3 6 5 7 4 Contact Point Proximity to Donor Strength of Fulcrum (delivery of case) Density of Soil Reputation of Hospital/System Length of Relationship Durability of Lever (clarity/power of case) Effort Required for Success

How Can “Philanthropy” Maximize its Contributions to Modern Health System’s Success?: 

How Can “Philanthropy” Maximize its Contributions to Modern Health System’s Success? 1. Strengthen Capacity to Thrive… 3. Enhance Reputation for Patient CRM … 2. Attack Health Risk Factors

One: Strengthen Capacity to Survive & Thrive: : 

One: Strengthen Capacity to Survive & Thrive: Funds, volunteers and influence to help do the work of Health Delivery Systems less invasive technologies for diagnosis and interventions quality assurance programming and education development of care management protocols and guidelines guest relations service support primary care personnel development new ambulatory care settings employee recognition programs for innovation & efficiencies information system technologies enhancements add to continuum of care programs and settings Even more traditional capital and operating initiatives?

Two: Attack Health Risk Factors:Utility reducing demand for power?: 

Two: Attack Health Risk Factors: Utility reducing demand for power? What are the factors? Births outliers…<15 and > 40 Underemployment induced Domestic Violence Drug Related Violence Alcohol Related Vehicular Injuries and Death Smoking Related Cardiac and Cancer Disease Sloth-like Life Styles Drive Cardiac & Strokes What ways to intervene to make a difference?…Grant Making & Program Funds to other players in community…epidemiology & interventions

Three: Enhance Reputation for  Patient CRM:: 

Three: Enhance Reputation for Patient CRM: Champion Health Fitness and Education Events and Programs Collaboration in Healthy Communities Initiatives with Other Parties Enhanced Image as Innovator and Compassionate Healer and Health Promoter for All Segments of Population Support “Member” Relations Technologies and Services Always balance high tech with high touch stories!

To maximize “P’s” contributions…P must be...: 

To maximize “P’s” contributions… P must be... rejuvenated refocused re-engineered

Leadership Must Be Enhanced: 

Leadership Must Be Enhanced Bold Strategies are Needed…...

“P” Rejuvenated...: 

“P” Rejuvenated... Back to basics... charitable purpose community inurement constancy of purpose

“P” Refocused...: 

“P” Refocused... Targeted investing, not random giving... strategic contribution sensible partnering sensitive ROI

“P” Re-engineered...: 

“P” Re-engineered... New infrastructure.. interactive insights interlaced networking instant celebration

The importance of “Governance”?: 

The importance of “Governance”? What is “Governance”? What gets in the way of good governance of Foundations? How can we enhance the governance of our nation’s health related foundations?

Effective governance by the board of a nonprofit organization is a rare and unnatural act...Taylor, Chait and Holland in“The New Work of Nonprofit Boards”Harvard Business Review Sept-Oct 1996: 

Effective governance by the board of a nonprofit organization is a rare and unnatural act... Taylor, Chait and Holland in “The New Work of Nonprofit Boards” Harvard Business Review Sept-Oct 1996

“… A poorly organized Board can continue to exist, but it cannot thrive since it cannot effectively mobilize or channel the energies of its members…” Cyril O. HouleGoverning Boards: 

“… A poorly organized Board can continue to exist, but it cannot thrive since it cannot effectively mobilize or channel the energies of its members…” Cyril O. Houle Governing Boards

Internal Infrastructure Tensions:: 

Internal Infrastructure Tensions: Lack focus on Relationship Building and Maintenance Poor info systems for complex development needs Lack Strategic (and Alliances) Plans for Getting Funds Lack Strategic (and Alliances) Plans for Grant-Making Weak systems for specialty infrastructure...

Specialty infrastructure...: 

Specialty infrastructure... Planned/defferred giving technical expertise Accounting/financial/investments/budget support major gift prospect research/moves management grant writing/case development/communications/publications management Direct mail expertise Gift acknowledgment support Special events (alone and with alliances) Recognition systems & protocols

How can Philanthropy Make a Difference in Unforgiving Markets?: 

How can Philanthropy Make a Difference in Unforgiving Markets? What can you do to strengthen your leadership?

Audience Innovation Insights:: 

Audience Innovation Insights: Planned giving Alliance Strategies Donor Profiling Systems Fund raising events

Strategic Positioning Trends:: 

Strategic Positioning Trends: Theme of recent capital campaign Theme of recent special event Most successful board development strategies