Keeping Philanthropy Front and Center During Mergers and Acquisitions

Merger on the horizon? Acquisition? Joint Venture?

You might be in the throes, or your institution may be contemplating it. And chances are philanthropy is not at the top of the list of negotiating points—unless you’re chief development officer. How do you best approach the opportunities and threats posed by M&A to optimally position philanthropy in the process? Top ten practical tips:

1. Keep in mind you may be the only one looking at donors in the mix: What will they think? How will they react? How will giving be impacted?
2. Who are the other stakeholders? How can you add value or reduce risk for them?
3. Study financial models— how will philanthropic funds flow? What will happen to existing funds?
4. Get a clear picture of governance models and lines of authority for the entities involved.
5. Who are the key players and how can you positively influence their decisions? Among those in leading positions, who might serve as your most effective advocates?
6. Arm senior leadership with relevant information about risks and opportunities related to philanthropy, and offer them scripts for use in negotiations.
7. Track key meetings and prepare influencers ahead of time. Suggest that issues affecting philanthropy be tabled until you can offer insights.
8. As you join the negotiating table, look for ways to offer collaboration without negatively impacting your donors, board or staff. Taking the lead with positive ideas for alignment or cooperation may help you avoid deeper hits to your programs.
9. Keep a record of any concessions, offers of assistance, and collaborations you’ve executed, so you can share as needed.
10. Draft a clear communication plan for-donors, foundation board/development committee, staff, etc. Use this opportunity to engage trustees and benefactors by asking for their feedback as the process unfolds.

For more insights on healthcare M&A and philanthropy, click here.

BWF’s 2013 “What the Affluent Think About Giving to Healthcare” Survey

BWF 2013 Healthcare Survey

Over the past 12 years, Bentz Whaley Flessner has conducted research to gauge the perceptions and opinions of affluent Americans toward making charitable gifts to hospitals and healthcare organizations. Our goal in collecting and sharing this data with you is to inform you of current attitudes toward giving so that you can build stronger, more sustainable development programs for your healthcare organization. Click here for the full report.

Below are a sampling of key takeaways from the survey:

• While knowledge of the hospital is a main motivator in giving, longevity of a relationship remains around 30% as a quality that motivates individuals to give.
• Since 2009, women have supported long-term care facilities more than men. While every year shows fluctuation in support to specific areas, women have consistently lagged behind in support for community hospitals.
• Notably, both donors and non-donors to hospitals recognize the importance of philanthropy to healthcare institutions.
• 40% of respondents indicated tax changes would not make a difference in their giving, while a total of 60% indicated that it would make a difference, or they were not sure.
• A majority indicated that their giving would not be changed in response to the healthcare legislation changes, while about a third indicated that they remain uncertain.

What do these results mean for you?

• Prioritize Healthcare organizations must show that philanthropy will have clear impact on the organization’s mission and have a measurable outcome.
• Educate While philanthropy remains an emotional decision, larger gifts will demand that donors be better informed. Segmenting a multi-channel philanthropic educational effort from traditional marketing efforts will produce positive results.
• Engage Engagement with volunteers, leadership, and medical personnel remains the single most effective tool for reaching out and appealing to prospects. Best practices demand triaging of prospects to ensure those with the greatest capacity are engaged.
• Ask With 67% of affluent donors reporting that they were not asked to make a gift, institutions are missing out on vast amounts of support by assuming the donor will give unprompted. Preparing donors for the ask strengthens the possibility of successful outcomes.

Interested in hearing more? Over the next 12 months Bentz Whaley Flessner will be doing “deeper dives” into the data and offering more insights to this survey and its impact on your work. Check back on the BWF website to learn more about this survey and additional breaking industry news; both can be found online on the Focus-Inspired Healthcare Philanthropy blog and through monthly e-newsletters distributions.

Another online resource, written by Bentz Whaley Flessner healthcare practice leader, Mark Marshall, offers insights into the world of philanthropy. The Marshall Art of Fundraising blog’s most recent posting focuses on moving from development officer to philanthropic advisor. Read it and other informative posts here.

Additionally, Mark Marshall and Doug Hutchings will be hosting a webinar on November 21 from 1:00–2:00 p.m. ET. This webinar will explore the many facets of grateful patients and family fundraising. Is your program achieving the results that you believe it should? Have you accessed this critically important untapped resource? And perhaps most importantly, how does this program fit in with your overall fundraising program? Register for this webinar on the BWF Events page.

Securing Lead Time for Philanthropy – Building Successful Healthcare Partnerships

Hospitals are working hard to manage financing for new projects.  More often a portion of the current capital project must be partially funded by major gifts initiative or a campaign.

 The best development – hospital administration relationships usually involve:

• C-Suite meetings in which development regularly participates.
  

  Being actively engaged in strategic planning and with potential donors is a key to building successful healthcare partnerships.

• Active participation in strategic planning sessions as an equal partner for the future.
• Expanding knowledge base of administrators about the art and science of philanthropy.

The more institutional planners know and understand major gifts fund raising, the more they will respect the need for lead time to secure those significant charitable gifts. While there are significant competitive issues related to strategic plans, being able to share broader themes with prospective donors can help to “pre-sell” many of their ideas and build partnerships.  Smaller engagement s with hospital leaders and prospective donors can be a powerful experience for both parties as they discuss the future of healthcare in their community.

Changing Priorities

A dynamic healthcare environment and the frequent use emergence of auto-cad design have created an ever-changing environment.   Key stakeholders often view this as a legitimate part of the planning process.  There will always be dynamic forces at work – internal and external – where priorities shift or capital funding dries up.  The issue is how it is addressed and ultimately conveyed to your key stakeholders.

Having regular dialogue with key stakeholders is the glue that bonds all the parties together.   Get those conversations going immediately with the donors and institutional leaders.  Remember that major gifts come to hospitals because of relationships.  They are cultivated and stewarded by their leaders.  The relationships will only be stronger if there is regular communication with meaningful dialogue.

Three keys to securing the lead time:

1. Be visible and engaged in the C-Suite discussions of substance (understand the business).
2. Actively participate in institutional strategic planning and set the course for philanthropy.
3. Connect donors and leaders around critical issues about your institution.

Social Media Success at a Children’s Hospital

How do you measure social media?

Can social media be used to to cultivate new donors? Can it be used for stewardship?

How much can social media impact fundraising?

The above are all common and good questions. To get some answers, we interviewed one of the experts – Jesse Stremcha, an e-Philanthropy Strategist with Children’s Hospitals and Clinics of Minnesota (@ChildrensMN). Jesse has been leading a comprehensive social-media-for-fundraising strategy for more than four years at Children’s Minnesota, which means he has a lot of tips, data, and best practices to share. The following link takes you to a Q and A previously posted on The Social Side of Giving blog.

To read Jesse’s answers to the above questions and more, click here.