Although many not-for-profit community hospitals do not currently have strong fundraising programs, they will increasingly rely on philanthropy to augment diminished income from shrinking reimbursement, predicts Moody’s Investor Services. Moody’s issued a special comment (Fundraising at Not-for-Profit Hospitals Largely Untapped but Increasing) on the importance of hospital fundraising as a factor in determining bond ratings, and says its credit assessments consider whether a hospital’s annual unrestricted gifts are predictable enough to support operations with a steady stream of revenue and whether the hospital’s restricted gifts are sufficient to fund capital projects. Moody’s outlined the following hallmarks of successful fundraising programs: Involved board members who can identify potential donors; a large donor base to prevent dependence on a few large donors; the ability to attract major gifts; predictability in giving; marketing strategies that effectively identify and target donors; full- time fundraising staff; and information systems that can track fundraising efforts.
