Donations to U.S. Hospitals Plunge 11%; First Drop Since 2002

Donations to nonprofit hospitals dropped by 11 percent last year, according to a new study.

Hospital gifts fell by $944-million to $7.6-billion from 2008, according to a new report by the Association for Healthcare Philanthropy. It was the first fund-raising dip since 2002, when giving dropped by 31 percent due to a recession.

Health-care giving in Canada last year rose 5.2 percent, or $56-million, to $1.1-billion.

The association said more than 80 percent of donors to hospitals were individuals, while 12 percent were corporations and foundations.

“What’s happening with individuals is not unlike what’s happening with corporations,” said William C. McGinly, chief executive of the hospital fund-raising group. “They’re holding on to cash because of the uncertainty of the times.”

He adds, “They’re giving less or extending their pledges over long periods of time. A lot of that goes to the actual impact of the economy.”

Mr. McGinly said he hopes charitable contributions will stay steady or rise a bit for 2010, as the economy begins to recover.

“The economy has strengthened a bit,” he says. “There’s no question about that. It’s the best we can hope for.”