“Higher education figured out, many years before healthcare did, that philanthropy was going to be an important and growing source of revenue for things like new buildings, programs, and research endowments,” according to Erin Lanahan, founder and president of Twin Point Insights, a healthcare consultancy in Los Angeles. “We’re now seeing the same trend in healthcare.”
Fluctuating reimbursements and the unpredictability of future governmental support for graduate medical education, research, and innovations in patient care are driving the trend. “Philanthropy was once viewed as a ‘nice to have’ but is increasingly a critical part of hospitals’ strategic plans and how they are funding growth,” said Lanahan, who is currently doubling as interim managing director for the Advisory Board’s Philanthropy Leadership Council in Washington, D.C.
This growing demand for experienced fundraisers with the ability to lead campaigns is driving recruiters to look outside healthcare for talent. This was reflected in research results from a development leadership survey conducted last year by Twin Point Insights for the Advisory Board. The study showed 9 of 33 respondents (28%) began their development careers in higher education and later migrated to healthcare, far more than the number who got their start in any other not-for-profit sector except healthcare itself where 10 of 33 (31%) began.
The results were the subject of a joint presentation given at the Association for Healthcare Philanthropy conference in Orlando this past September. The presentation was given by Lanahan and Jessica McClain, formerly with the Cleveland Clinic and now senior vice president and chief philanthropy officer for MedStar Health in Columbia, Maryland.
This infusion of new talent and new ideas from outside healthcare isn’t a bad thing in itself. Many are drawn to the field specifically because of the mission, Lanahan noted. However, many of these newcomers face a steep learning curve when it comes to mastering the language and business of healthcare.
“It’s not enough for chief philanthropy officers to be outstanding fundraisers and great managers. They also have to be healthcare executives who are fluent with what’s happening in the field and understand what’s going on with things like innovation, AI (artificial intelligence) in healthcare, and accountable care as well as the regulatory and financial aspects and mergers across the country,” Lanahan said.
Chief philanthropy officers need this understanding to communicate effectively with board members, executives, and staff. Donors also expect it. “Donors are increasingly sophisticated and want to understand, if they’re making a significant investment in a particular hospital or health system, how those dollars will be put to use and what the forces are at play there,” Lanahan said.
The findings suggest that hospital and healthcare foundation leaders will not only have to continue looking outside healthcare for fundraising talent but must also have a plan to nurture and bring these newcomers up to speed with the healthcare business. Without this, healthcare philanthropy could find itself starved for the next generation of leadership at a time when philanthropy matters more than ever before.