AHP Connect Articles

Decoding the Data: Insights from the 2024 Report on Giving

Every year, the AHP Report on Giving offers healthcare fundraising professionals an opportunity to reflect on our sector’s performance, highlighting trends, best practices, and key insights for growth. The 2024 Report is no different. But beyond the top-line statistics and benchmarks, this year’s report reveals some essential takeaways that can help your organization build on its strengths, improve efficiency, and ultimately, boost fundraising revenue.

Here’s a closer look at the key takeaways from the 2024 Report on Giving from our recent trends webinar and what they mean for your fundraising strategy.

1. High Performers Leverage Campaigns for Success 

One of the most notable insights from the FY23 report is the critical role campaigns play in high performance. The data shows that 70% of revenue high performers and 65% of productivity high performers are engaged in a campaign, compared to just 53% of all participants. This suggests that engaging in a campaign is a significant driver of success, particularly for those organizations aiming to boost revenue.

Campaigns can create urgency, provide a clear focus for donor engagement, and increase contributions through targeted, time-bound initiatives. They often allow organizations to solicit larger gifts, engage leadership in a more active role, and inspire donors by connecting fundraising to concrete, impactful outcomes. If your organization isn’t currently involved in a campaign, now might be the time to consider it as a key strategy for elevating your results.

Key Takeaway: If your organization is not already planning or executing a campaign, it's worth evaluating how a strategic, targeted campaign could impact your overall performance—especially if you're looking to raise more significant funds or improve efficiency.

2. Engaged Leadership Matters 

The role of internal leadership—particularly foundation boards and physicians—is pivotal for high performers, especially in terms of productivity. Among productivity high performers—those in the top 25% of survey participants in terms of net fundraising revenue per direct fundraising FTE—a striking 85% of foundation board members contribute financially, compared to 70% of all respondents. Physician giving is equally important. Productivity high performers report receiving donations from 80% of their medical staff, compared to 70% for all participants.

These numbers point to the power of internal leadership in driving fundraising success. When influential stakeholders like board members and physicians are committed to the cause, both financially and as advocates, their support often leads to more effective donor engagement and broader philanthropic success.

Engaged leadership can signal credibility and commitment to donors, providing reassurance that the organization’s mission is valued by those who know it best. This can inspire more confidence in major gift prospects and other high-level donors. For organizations looking to improve, fostering deeper engagement among leadership—through consistent communication, goal alignment, and increased involvement in fundraising efforts—can make a real difference.

Key Takeaway: Focus on increasing participation from key internal stakeholders. Whether it's board members, foundation leadership, or physicians, their contributions set the tone for external donors and create a culture of giving within the organization.

3. Corporate and Government Funding: Key to High Productivity

Looking at the breakdown of production revenue by program type, corporate gifts and government funding stand out as vital for high performers. Productivity high performers, in particular, rely on these sources more than others. Corporate gifts make up 32% of their total production revenue, compared to just 24% for all participants. Similarly, government funding accounts for 17% of their revenue, compared to 12% for all respondents.

These high performers demonstrate that success often comes from securing larger, institutional gifts from corporations or public sector grants. These types of funding sources are more predictable, often larger, and can create sustainable revenue streams that improve fundraising efficiency.

For organizations looking to boost their productivity, expanding corporate partnerships and pursuing government grants may be a fruitful area of focus. While these revenue streams can require more relationship-building and longer lead times, the payoff can be substantial. Developing targeted strategies for cultivating corporate sponsors and engaging with public sector opportunities can elevate your organization’s performance.

Key Takeaway: High performers are more likely to prioritize corporate and government funding. If your organization isn’t already targeting these areas, you may want to explore new partnerships and grant opportunities to diversify your revenue streams and boost long-term productivity.

 

4. Much of Historical Growth Stems from Industry Consolidation

While the overall median production revenue has increased steadily over the past 15 years, much of this growth can be attributed to the changing landscape of the healthcare sector, particularly consolidation among community hospitals and the rise of larger health systems. In fact, much of the significant revenue growth seen in the data reflects the increased participation of large healthcare systems, rather than broad growth across all institution types.

This means that while there has been real growth in the sector, much of it is concentrated among larger institutions like academic medical centers and health systems. Community hospitals, for instance, have seen more modest gains, reflecting the ongoing challenges smaller organizations face in matching the fundraising capacities of larger institutions.

For smaller organizations, it may be more important to focus on efficiency and targeted high-impact fundraising efforts (like major gifts or corporate partnerships) to ensure growth. Investing in campaigns and strengthening internal leadership involvement can help smaller institutions punch above their weight.

Key Takeaway: Revenue growth is concentrated among larger institutions, meaning smaller organizations may need to focus on operational efficiency, leadership engagement, and targeted strategies like major gifts to stay competitive.

Final Thoughts

Let’s keep driving forward. There’s still plenty of work to do, and this year’s report is a great resource for finding the strategies that will work best for your organization.

Watch our recent webinar or get the full report for more valuable insights that can help you refine your strategies and focus on what truly works. AHPrime members and survey participants can email membership@ahp.org for a free copy of the report.