Healthcare Contributions Slow Dramatically in 2006
(Oct. 29, 2007) While giving to Canadian healthcare institutions increased in 2006, the rate of growth fell significantly compared to 2005, according to a new study by the Association for Healthcare Philanthropy.
The AHP 2006 Report on Giving found that Canadian healthcare contributions increased just 3.3 percent to $1.23 billion in 2006, compared to 11 percent growth in 2005.
The make-up of healthcare giving in Canada was also different in 2006 compared to 2005. Fifty-two percent of healthcare giving came from individuals in 2006, compared to 61 percent in 2005. Noncorporate foundations contributed 9.7 percent of the total in 2006, compared to just 3.5 percent in 2006. The other two categories, businesses (including corporate foundations) and “other sources” were roughly the same, representing 25.6 percent and 13.0 percent of the total, respectively.
“Although not increasing as much as in past years, Canadian charitable healthcare contributions are still being donated at a level which will make a difference in people’s lives every day,” said Linda Saunders, CFRE, AHP Canada regional director, in the press release. “The report bears this out in the fact that over half of the funds raised in Canada were from individual givers.”
U.S. Giving Slows, Too
The rate of increase in healthcare giving also fell in the United States in 2006 compared to 2005. Overall giving increased to $7.9 billion in 2006, but the 11.5 percent rate of increase was substantially lower than the 16 percent increase reported in the previous year.
Individual contributions represented 60 percent of all healthcare giving, while businesses, including corporate foundations, gave about 20 percent of gifts. Noncorporate foundations accounted for 12 percent of healthcare funds, while a variety of sources, including hospital auxiliaries, public agencies and civic groups, were responsible for the remaining 8 percent. These figures are mostly unchanged from the 2005 numbers.
“Philanthropic dollars are being eroded and the healthcare system is being stressed by a ‘perfect storm’ of problems for nonprofits,” said William C. McGinly, Ph.D., CAE, president and chief executive officer of AHP, in a press release about the study. McGinly pointed to new proposed health coverage for uninsured illegal immigrants and the burdensome privacy regulations in the Health Insurance Portability and Accountability Act as some of the key problems.
About the Study
Nearly 300 organizations participated in the survey for the 2006 AHP Report on Giving, which is intended to show national trends in the United States and Canada and relate these trends, where applicable, to the changing healthcare environment.
The complete report is available by contacting Kathy Renzetti at (703) 532-6243 or via email at Kathy@ahp.org.
The Association for Healthcare Philanthropy (AHP), established in 1967, is a nonprofit organization whose 4,600+ members manage philanthropic programs in 2,200 of North America’s nonprofit healthcare providers.