What drives healthcare philanthropy?

Patient experiences drive healthcare philanthropy. Unlike other nonprofit sectors, constituents often witness or benefit directly from life-changing or lifesaving care firsthand. 

Consider a parent whose child receives groundbreaking treatment for a rare condition, a cancer survivor benefiting from innovative immunotherapy, or a trauma patient who walks again thanks to dedicated rehabilitation teams. These individuals don’t just receive care; they experience transformative moments that often inspire them to give back.

These profound experiences inspire various forms of philanthropic support, including:

• Grateful patient programs that fund immediate care needs
• Community health initiatives that expand access to care
• Endowed research positions that advance medical breakthroughs.
• Transformative gifts that construct new healing spaces
• Innovative treatment centers that bring advanced therapies and cutting-edge care to patients

Why is healthcare fundraising important?

Healthcare fundraising enables hospitals and medical institutions to secure vital funding that clinical revenue alone can’t provide. Support strengthens the organization’s mission impact and long-term sustainability by:

• Expanding patient care and programs: Donations enable hospitals to offer new services, improve access, and fund initiatives that standard budgets can’t cover.
• Supporting medical research and innovation: Gifts fund clinical trials, breakthroughs, and advanced treatments that improve outcomes.
• Enhancing donor engagement and relationships: Thoughtful engagement fosters trust, strengthens long-term support, and builds a culture of giving. 
• Aligning fundraising with mission impact: Coordinated campaigns and strategic focus ensure donations directly support the organization’s core goals. 

How healthcare fundraising works

Healthcare fundraising connects donors with opportunities to support patient care, research, and the facility’s growth. Organizations use a combination of prospect research, defined fundraising strategies, and campaigns to raise funds while building lasting relationships.

Prospect research

Prospect research identifies individuals with both the capacity and inclination to give. Healthcare organizations use data such as patient engagement, wealth indicators, and philanthropic history to prioritize outreach. 

Prospect research software and customer relationship management (CRM) platforms help teams identify high-potential donors efficiently without disrupting patient care. This allows fundraisers to focus on relationship-building rather than broad solicitation. For a deeper breakdown of prospect research, see our complete guide: Prospect research 101 for nonprofits.

Balance privacy with engagement

While prospect research helps identify high-potential donors, healthcare organizations must use data thoughtfully. Maintaining patient trust requires protecting sensitive information while personalizing outreach to foster meaningful donor relationships.

Integrating prospect research into your fundraising strategy

Daily patient screenings, patient screening services, and in-house prospect teams work together to identify high-potential donors. Regular wealth screenings help staff recognize prospects during their care journey and coordinate timely, personalized engagement. 

Fundraising platforms automate much of the research process, making prospect data actionable and allowing teams to focus on building strong donor relationships. Once prospects are identified, in-house teams follow up with visits, calls, or tailored outreach to convert interest into giving.

Types of healthcare donations

Healthcare organizations categorize donations to match strategies with the right donors. Understanding the differences between planned giving and major gifts is important for tailoring outreach and engagement strategies:

• Major gifts: Most hospital donations come from major gifts, often through grateful patient programs. Donors are typically current or former patients with the capacity and desire to give back to the organization that supported their care.
• Planned gifts: Planned gifts are significant contributions made as part of long-term estate planning, such as funding a hospital wing in honor of a loved one. 
• Payroll giving: Employees use this to support organizations through payroll deductions, often coordinated via internal campaigns. 

Specialized healthcare fundraising software and fundraising CRM tools help your team identify high-potential individuals and segment them for targeted engagement. Engaging patients thoughtfully during care builds trust. This approach emphasizes relationship-building over solicitation and increases the likelihood of future major or planned gifts. 

Key fundraising strategies

Healthcare organizations use targeted strategies to build lasting relationships and maximize donations.

Grateful patient programs

Grateful patient programs engage current or former patients who have experienced transformative care to support initiatives meaningful to them. Use proven engagement techniques and data-driven workflows to power up your grateful patient program (or watch our webinar here).

Diversified revenue streams

Diversified revenue streams combine major gifts, planned gifts, corporate sponsorships, and community fundraising to maintain consistent support and reduce reliance on any single source.

Peer-to-peer fundraising

Peer-to-peer fundraising encourages patients, families, and community members to advocate and fundraise on behalf of the organization to expand reach and engagement.

Engagement and cultivation strategies

Key engagement and cultivation strategies in healthcare fundraising include:

• Fundraising events: Host galas, auctions, or community activities to engage supporters and generate new donor interest.
• Merchandise campaigns: Use branded items to spread awareness and support fundraising goals.
• Corporate philanthropy: Engage local businesses for sponsorships, matching gifts, and partnership opportunities.
• Regular donor updates: Keep donors informed about impact and progress to inspire continued support.

Identifying healthcare fundraising prospects

Once strategies are in place, the next step is to identify the right individuals and groups to add to your prospect lists. Targeting the right prospects ensures outreach is efficient and fundraising efforts have the greatest impact. Healthcare organizations should consider a mix of: 

• Physicians: Current and retired clinicians usually support programs tied to their specialty or patient outcomes. For example, a retired cardiologist might fund a new heart disease program.
• Hospital employees: Staff may give through voluntary programs or internal campaigns. 
• Grateful patients: Former patients are a key prospect group. Using wealth screening and data insights identifies patients with major gift potential.
• Corporations: Local and regional businesses sponsor events or donate items to auctions, which expands community support.
• Healthcare foundations: Foundations fund programs aligned with their mission, such as disease-specific research initiatives.
• Communities: Community members often donate in memory of patients or in gratitude for care received. Some communities organize independent fundraising efforts to support hospitals.
• Families: Families give gifts after a loved one receives life-saving or long-term care. These are driven by gratitude and personal connection.
• Grant organizations: Grant-making organizations fund nonprofits with defined goals and specific needs. Grant funding requires formal proposals and clear program objectives.

Pro tip: Using a fundraising CRM at this stage ensures that prospect segmentation, engagement tracking, and relationship-building are organized and actionable.

Types of campaigns

Campaigns structure fundraising efforts to meet short- and long-term funding goals.

Annual campaigns

Annual campaigns support ongoing operations without a single defined project. They often include events such as auctions, black-tie galas, or ongoing grateful patient programs.

Capital campaigns

Capital campaigns are goal-driven efforts with a fixed timeline. They typically fund large initiatives such as new buildings, major equipment, or renovations. Capital campaigns include two phases:

• Private (quiet) phase: Most donations are received during this phase. Early identification of major donors is vital.
• Public phase: The broader community is invited to give after major gifts are secured.

Key roles in healthcare fundraising

Healthcare organizations need teams with clearly defined roles and aligned goals. Fundraising CRMs can help coordinate efforts, segment prospects, and track engagement. They ensure each team member, from marketers to clinicians, is able to act on timely donor insights. Clear team responsibilities ensure donors are engaged thoughtfully, and every fundraising effort achieves maximum impact.

Fundraisers and marketers

Fundraisers and marketers must collaborate closely to maximize campaign impact. Marketers target audiences and craft compelling stories, while fundraisers cultivate relationships and secure gifts. When aligned, these teams deepen donor engagement and boost contributions, advancing the organization’s mission.

Development committee

The development committee leads healthcare fundraising initiatives. It is typically chaired by the hospital’s executive or developmental director. Members oversee campaigns, engage donors, and represent the organization’s mission. Diversity within the committee ensures outreach to a broad donor base. 

Major and planned giving officers

These officers focus on large donations. They research prospects, maintain donor databases, and cultivate donor relationships to promote giving opportunities. Strong interpersonal skills are essential for these roles to sustain long-term donor engagement.

Hospital administration

Administrative staff support fundraising by ensuring positive patient experiences. Addressing any concerns promptly goes a long way to strengthening donor relationships. Satisfied patients will increase the likelihood of future contributions. 

Doctors and nurses

Medical staff influence donor engagement through personal interactions. Meeting one-to-one with patients to explain care options and answer any questions helps them feel supported. Positive experiences with clinicians directly impact giving and foster long-term donor loyalty.

Harnessing AI in healthcare fundraising

AI in healthcare fundraising helps organizations identify high-potential donors, personalize engagement, and streamline operations without replacing human judgment. Integrated with top-tier fundraising CRMs, these tools help support staff, prioritize prospects efficiently, and enhance donor interactions. Nearly 70 percent of healthcare donors think AI will improve charitable effectiveness, but organizations must use it responsibly and transparently to build trust. 

Key AI applications

AI supports healthcare fundraising by automating tasks, analyzing data, and guiding strategic donor engagement. Key applications include:

• Wealth and capacity screenings quickly identify patients with major gift potential using wealth and philanthropic data.
• Predictive analytics forecast giving patterns and prioritize high-potential donors.
• Donor insights and targeting analyze patient and donor data to uncover high-potential prospects and personalize outreach based on giving propensity, engagement signals, and past behavior. 
• Chatbots and virtual assistants provide real-time donor support, answer questions, and share campaign information efficiently.
• Dynamic gift and recognition strategies use donor behavior and market trends to suggest optimal gift levels and tailor recognition opportunities, improving appeal effectiveness and conversion.
• Content generation drafts emails, social posts, grant applications, and stewardship plans, saving fundraising staff time while maintaining personalization.

AI tools

Several tools make these applications actionable by supporting donor identification, engagement, and campaign efficiency without replacing human judgment: 

• iWave performs predictive screening of the industry’s most accurate donor data to identify donors with the capacity and inclination to give.
• Ascend CRM can segment, prioritize, and track donors. 
• Kindsight Intelligence (directly within Ascend CRM) can draft contact reports, convert record data into clear, actionable summaries, and drafts tailored emails, call scripts, and stewardship messages. 

Pro tip: Use AI to support human decision-making while keeping people in control. You must maintain ethical practices, ensure privacy compliance, and preserve personalized human connections while leveraging AI to enhance effectiveness.

Challenges in healthcare fundraising

Healthcare fundraising faces unique challenges, including strict compliance requirements, complex stakeholder structures, legacy systems, and inconsistent use of data. These obstacles slow decision-making, limit efficiency, and strain donor engagement. When addressed strategically, they create opportunities to strengthen donor relationships and improve fundraising performance. 

According to the Association for Healthcare Philanthropy, hospitals in the United States see an average return of $4.29 for every $1 invested in fundraising. That’s more than a 300 percent return on investment! By tackling these challenges head-on, you’ll transform your fundraising operations into a high-performing engine that delivers exceptional results. 

1. Data privacy & compliance: Navigating HIPAA and PHI in donor engagement

Healthcare fundraising operates within strict regulatory frameworks like the Health Insurance Portability and Accountability Act (HIPAA). Protected Health Information (PHI) is tightly controlled, making donor outreach a potential compliance minefield. Any misstep in handling sensitive information will potentially lead to serious reputational damage and legal consequences.

When creating a grateful patient program, make sure you exclude sensitive health information, such as:

• Diagnosis
• Nature of service
• Medical treatment

To maintain compliance, ensure every member of your fundraising team is trained on HIPAA and PHI and understands proper legal guidelines. According to IBM’s Cost of a Data Breach Report 2024, the average cost of a healthcare data breach is approximately $9.8 million per incident, the highest across all industries.

How to overcome it:

• Implement a HIPAA-compliant CRM system. Non-compliance increases the risk of legal violations and data breaches. Ensure your system includes encryption, restricted access controls, and comprehensive audit trails to protect donor trust.
• Segment donor lists responsibly by using de-identified data and opt-in consent mechanisms. Group donors by engagement level, past giving behavior, and event participation rather than health conditions.
• Establish strict role-based access protocols, so only authorized fundraising staff can interact with donor data. Configure automated permissions aligned with privacy regulations to prevent unauthorized access.

2. Complex decision-making and stakeholder coordination

Healthcare fundraising involves multiple stakeholders, including hospital executives, foundation boards, and compliance teams. This complexity often creates decision-making bottlenecks and delays campaign approvals.

How to overcome it:

• Develop comprehensive stakeholder maps to clarify who influences donation approvals. Identify champions within the hospital system who will advocate for fundraising initiatives.
• Leverage data-driven reporting to make compelling cases for support. Use dashboards that clearly connect fundraising impact to patient care improvements and hospital priorities.
• Streamline approval workflows with automated reminders and clear deadlines. Establish a structured campaign review cadence to maintain momentum for fundraising initiatives.

3. Ethical challenges in engaging grateful patients

Grateful patient programs are a critical component of healthcare fundraising and require careful management. Research from the Advisory Board shows that grateful patient programs are genuinely helping many hospitals improve their bottom lines. Ethical considerations, privacy regulations, and patient trust all play a role in ensuring outreach is both effective and respectful.

How to overcome it:

• Implement explicit opt-in mechanisms so patients willingly participate. Allow them to specify preferred communication channels and desired engagement levels.
• Personalize outreach with discretion by focusing on impact stories rather than medical history. Connect patients with hospital initiatives that align with their care experiences. 
• Provide comprehensive staff training on ethical donor engagement to ensure all interactions remain sensitive, respectful, and compliant with hospital policies.

4. Integration challenges with legacy systems

Many healthcare fundraising teams continue operating on outdated systems, leading to inefficiencies and data silos. While transitioning to a modern CRM seems daunting, the long-term benefits substantially outweigh the short-term disruption. 

A 2022 Digital Fundraising Benchmark Report for Hospitals showed that almost 58 percent of respondents wanted more integration between their CRM, email marketing, and donation processing platforms.

How to overcome it:

• Select a CRM that integrates seamlessly with hospital systems to enable real-time data synchronization across departments. Look for platforms supporting bi-directional data sharing with electronic medical records (EMRs) and financial systems.
• Implement a phased data migration strategy by prioritizing high-value donor records and gradually transitioning legacy data.
• Adopt automation for donor stewardship to improve efficiency. Configure triggered communications for acknowledgments, recurring gift reminders, and impact updates.

5. Lack of a strategic, timely data approach

Many healthcare fundraising teams collect large volumes of patient and donor data, but lack a clear plan for when and how to use it. High-performing organizations focus only on the data that directly informs donor engagement and fundraising outcomes. Fragmented, outdated, or delayed data prevents timely action, causing missed opportunities and weakening donor relationships.

Common barriers include:

• Restrictions on accessing historical patient records
• Limited tracking of family relationships across systems
• Uneven access for patients in sensitive care areas
• Patients who opt out of fundraising communications

How to overcome it:

• Define a clear data strategy focused on actionable insights rather than tracking everything.
• Ensure key engagement indicators, such as gratitude expressions, survey feedback, event participation, and community involvement, are surfaced quickly and securely shared with the fundraising team.
• Standardize data quality by eliminating duplicate records, enforcing consistent data entry across departments, and maintaining accurate links between patients, families, and service lines. 
• Establish structured collection protocols with clear access guidelines, regular quality checks, compliance monitoring, and timeline standards for each data type.

Selecting and using high-value fundraising data

Reviewing past donor wins and missed opportunities shows which data points drive high-impact fundraising outcomes. The goal is to focus on actionable, high-value data. Key questions include:

• Which data supported successful donor engagement?
• Which signals consistently appear in high-impact donor journeys?
• Where did gaps or delays cause missed opportunities?

These questions highlight the importance of actionable data. Now consider how the timely and strategic use of donor data impacts fundraising in practice.

Scenario 1: Strategic and timely data use

A gift officer receives an alert about a grateful family whose child received specialized cardiac care. Engagement signals indicate readiness for deeper involvement: 

• Repeated expressions of gratitude
• Attendance at education sessions
• Sharing their experience with others on the ward
• Expressed interest in pediatric cardiac research 

The officer takes coordinated action by connecting the family with the care team, inviting them to a research symposium, and arranging a facility tour. 

Result: This intentional engagement leads to a significant gift that establishes a pediatric cardiac research fund.

Scenario 2: Delayed or fragmented data

A gift officer discovered that a major donor’s spouse received cancer treatment two years earlier, but no relevant care or engagement data was entered into the system. The spouse had previously tried to explore giving opportunities, but the information never reached the advancement team. 

Result: Without timely, accessible data, the opportunity is lost. The family ultimately donates elsewhere.

Maintaining accurate, standardized data ensures engagement signals are captured and usable when they matter most. This supports a strategic approach to fundraising data, as outlined in our resource, The ultimate guide to data-led fundraising.

Best practices to elevate your healthcare fundraising strategy

Follow these proven best practices to maximize healthcare fundraising success:

• Leverage data-driven personalization: Tailor donor outreach based on giving history, interests, and engagement preferences.
• Embrace multi-channel engagement: Use email, social media, events, and direct outreach to connect with donors where they are most active.
• Optimize for conversions: Reduce friction on donation pages with clear calls-to-action and a seamless user experience.
• Build thought leadership: Publish research-backed insights, impact stories, and outcomes to enhance credibility and trust.
• Test and iterate: A/B test your messaging, visuals, and engagement strategies to continuously improve performance.

How Kindsight’sAscend solves these challenges

Kindsight’sAscend is a nonprofit CRM and donor management software (DMS) built specifically for healthcare fundraising teams. It helps organizations address common challenges by providing: 

• HIPAA-compliant donor engagement: Securely manage donor data with robust compliance safeguards.
• Integrated dashboards and reporting: Access customizable, real-time analytics dashboards for comprehensive donor and fundraising data. 
• Streamlined stakeholder coordination: Track interactions and manage decision-making workflows efficiently.
• Ethical grateful patient engagement: Implement tools ensuring transparency and respectful outreach.
• Seamless Salesforce integration: Transition beyond legacy systems with a CRM designed for modern healthcare fundraising needs. 

With the right technology infrastructure, healthcare fundraising teams will navigate their unique challenges more effectively. This will foster donor trust, improve operational efficiency, and ultimately drive greater impact for their organizations.

Strengthening healthcare fundraising through technology

Healthcare fundraising works best when people, data, and technology work together. AI and automation help surface key engagement signals at the right time. This reduces manual work and supports timely, ethical donor outreach.

As healthcare systems become more complex, fundraising success depends on speed and clarity. Strategic use of data helps teams focus on high-impact relationships and avoid missed opportunities. This approach drives stronger results while protecting trust and compliance.

Contributors to this blog

Laura Curk

Laura (LC) is the Director of Product Marketing at Kindsight, where she makes sure Kindsight’s technology is accessible and actionable. She is passionate about giving nonprofit professionals the right tools to achieve their missions and maximize their impact.

LinkedIn

Scott Nelson

Scott Nelson is an Aliso Viejo, California based strategic communications and philanthropy consultant with extensive experience in health care, higher education, nonprofits, and a range of other industries.

LinkedIn

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This isn’t a hypothetical scenario. It is the current reality for fundraising organizations.

For years, we’ve operated under the assumption that the biggest barrier to fundraising is donor willingness. We worry about donor fatigue. We worry about economic uncertainty. We worry that people just don’t care enough. But the data tells a different, more optimistic story. 

This month, Kindsight asked 512 qualified donors across the United States about donor engagement, their willingness to give, and the importance of timing. From occasional givers to frequent philanthropists, these respondents provided a clear window into how donors perceive—and react to—fundraising outreach today. 

Here’s what they said. 

The readiness gap: What donors told us

The headline finding of this research might transform fundraising outreach as we know it: 66% of active donors say they have been ready to give to a cause but chose not to because the outreach was mistimed, irrelevant, or disconnected from their moment of intent.

In other words, two-thirds of donors have experienced a “readiness gap.” They had the capacity and the inclination to support a cause, but something about the interaction stopped them cold.

When we asked these donors why they didn’t complete their gift despite being ready, their answers pointed directly to a breakdown in communication and trust.

• 37% weren’t sure where their money would go. Transparency remains the bedrock of trust. When a donor is ready to act but can’t see the path from their dollar to impact, they hesitate.
• 16% found the request generic or impersonal. In an era of hyper-personalization, a “Dear Friend” letter sent to a long-time supporter signals a lack of care.
• 15% felt the timing was wrong. The request arrived too early, too late, or felt completely disconnected from what was happening in their lives.
• 14% felt overwhelmed by too many requests. Volume is not a substitute for precision.

The impact of these missed moments isn’t temporary. When asked if these experiences made them less likely to donate in the future, the average response score was 55 out of 100. This suggests that missing the moment doesn’t just cost you a single gift—it causes moderate, cumulative damage to the long-term donor relationship.

This data reveals that our current “spray and pray” tactics could actually be working against us. By prioritizing volume over relevance, we aren’t just missing gifts; we are training our most valuable supporters to tune us out.

The revenue opportunity hiding in plain sight

It is easy to look at missed opportunities and feel discouraged. However, the flip side of this data is incredibly encouraging. If we can close the readiness gap, the potential for increased revenue is substantial.

We asked donors: “Would you donate more if organizations understood when you’re ready?”

Nearly half—47%—said yes. Let that sink in. Nearly half of your donor file is telling you that they have more to give, and the key to unlocking that capacity is simply understanding their timeline.

Crucially, this isn’t about shifting money from one charity to another. This is about incremental giving. Among those who said they would give more:

• 58% would give “modestly more.”
• 39% would give “moderately more.”
• 3% would give “substantially more.”

This shatters the myth of the “tapped out” donor. Your supporters are not ATMs with a fixed withdrawal limit; they are partners who want to invest when the time is right. When you align your ask with their life events and readiness signals, you aren’t pestering them—you are facilitating their desire to do good.

How donors actually experience fundraising outreach

We’re uncovering a stark difference between how fundraising organizations think they are communicating and how donors perceive it. We asked respondents to rate how well charitable organizations understand when they are ready to give. The average score? 45 out of 100.

In other words, donors perceive our timing as below average. They feel like we are guessing—and often guessing wrong. This perception gap is fueled by outreach that feels robotic rather than relational.

When we analyzed open-ended responses about how fundraising organizations could improve, three themes were consistent and loud:

1. Transparency is non-negotiable. Donors want to know the “how” and “why” of their gift. As one respondent put it, “Share real stories that show the difference being made, be open about how funds are used.”
2. Authenticity beats formality. Donors are craving genuine connection. They want to hear from humans, not institutions. One donor advised, “Be less formal and much more natural with how they approach communications.”
3. Respect their history. Nothing kills readiness faster than asking a loyal donor for a first-time gift amount or ignoring their past support. “Remember how much and when the person has donated,” one respondent urged.

The frustration is palpable. Donors want to be seen as individuals with unique lives, not just rows in a database segment. So many fundraising organizations have incredible impact stories to tell. But when outreach ignores donor context—blasting them during tax season or asking for another gift days after a donation—it makes them feel like the organization cares more about its own goals than the donor’s experience.

The healthcare signal

Nowhere is the importance of timing more critical—or more frequently missed—than in healthcare philanthropy. Our study found that healthcare organizations are the most supported cause, with 49% of respondents directing their giving to this sector. This makes sense; health is personal, emotional, and urgent.

However, despite healthcare giving being tied directly to specific life events (a diagnosis, a recovery, a grateful patient experience), the outreach is profoundly out of sync.

Among donors who experienced a health situation involving themselves or a loved one:

• 28% were never contacted by the healthcare organization
• 25% don’t recall being contacted
• 22% were contacted after a month or more
• 17% were contacted within weeks
• 8% were contacted within days

You read that right: only 25% received timely outreach within days or weeks of their experience.

This is a massive missed opportunity for grateful patient programs. When a patient or family member has a positive outcome, the gratitude is often immediate. But that feeling has a half-life. If you wait months to reach out—or never reach out at all—that emotional momentum fades.

Healthcare donors are telling us that they want to express gratitude, but the systems aren’t in place to receive it. By tightening the loop between care and connection, healthcare foundations can honor the patient’s journey while securing vital support.

What this means for fundraisers: Practical takeaways

The data is clear: the old playbook of “more volume, more frequency” is broken. To capture the 66% of donors who are ready but waiting, we need to shift our strategy from volume to precision.

Here are three actionable steps you can take today to close the readiness gap:

1. Prioritize timing over frequency

We can worry less about how often we email and start worrying about when. The “right time” isn’t just “End of Year.” It’s when a donor has had a meaningful interaction with you, when they’ve hit a milestone, or when they are showing digital signals of interest. Use your data to identify these triggers. A single, well-timed personal note is worth more than ten generic blasts.

2. Radical transparency is your best hook

Since 37% of ready donors walked away because they didn’t know where the money would go, make impact the centerpiece of every ask. Don’t just ask for $50; tell them exactly what that $50 achieves. Specificity builds trust, and trust converts readiness into action.

3. Personalization must go beyond the name tag

“Dear [First Name]” is no longer enough. True personalization means acknowledging the relationship. If they gave last month, start your next email by saying, “Thank you for your gift in January.” If they are a long-time volunteer, mention that service. Show them that you know who they are. The data shows that acknowledging past support is a top driver of donation decisions.

A (brief) Kindsight perspective

At Kindsight, we conducted this research because we believe the future of fundraising isn’t about shouting louder; it’s about listening better. We built our platform to solve exactly this problem—to help organizations move beyond static lists and understand the dynamic signals that indicate when a donor is ready to engage. You can learn more here. 

Final thoughts

This gap between donor readiness and organizational action represents a significant loss—but more importantly, a massive opportunity. By understanding the “when” and “why” behind these missed connections, fundraisers can unlock a new level of support that has been hiding in plain sight.

The generosity is out there. The donors are ready. It’s time we met them in the moment.

The post Two-thirds of donors were ready to give, but didn’t. Here’s what that means for fundraising. appeared first on Kindsight.

There are hundreds of fundraising ideas out there, but many of them focus on small events and feel-good campaigns. How do you figure out what actually works for a major capital campaign? We’ve distilled our knowledge into the best capital campaign fundraising ideas — for when you need to raise money at scale. 

For more information capital campaigns, read our 7 capital campaign best practices blog.

11 of the most successful capital campaign fundraising ideas

Forget about wading through a list of 100+ generic fundraising ideas. Here are the very best fundraising ideas for capital campaigns, so you can start adding them to your fundraising plan.

1. Reach out to major donors

The fundraising world isn’t immune to the reality of the Pareto principle. Recent data shows that the top 20 gifts account for 70% of your campaign goal, so place the majority of your attention on your major donors.

Major donors are some of the first people you’ll speak to after the planning phase, as you’ll want to secure their support before your public launch. Use fundraising intelligence and prospect research software like iwave to sift through billions of data points to identify the right donors, then build a personalized outreach plan.

Securing major gifts for your capital campaign during and after the quiet phase requires more than a simple email or quick coffee meeting. Elevate the experience and increase your chances of success with:

• A gift range scale and an idea of where your major donors fit into it
• Messaging tailored to your donor’s giving history and interests
• Updates on how their previous donations have made a difference
• An in-person or virtual meeting dedicated to discussing how they can support your campaign
• Exclusive opportunities beyond a monetary donation — like a plaque, sponsorship, or wider partnership
• A suggested donation amount based on their previous contributions

Whether you’re looking to raise $50,000 or $5,000,000, building and maintaining good relationships with existing and potential major donors is essential. They’ll help you reach not only your capital campaign goal, but other milestones in the future.

2. Host a kickoff event

When it’s time to go public with your campaign, you want your entire world to know about it. Plan and host an engaging kickoff event that celebrates your mission, highlights your goals, and launches your public fundraising efforts.

This isn’t just any promotional event — it’s an opportunity to capitalize on momentum and bring in a second wave of donations. Here are some capital campaign fundraising ideas to make your kickoff event feel special:

• Send highly personalized event invitations to stakeholders and donors
• Hint on social media and by email that there’s a big announcement coming
• Build up to a live reveal of your fundraising total so far
• Host an engaging Q&A session
• Turn the event into a celebration with live entertainment
• Livestream your event to attract attention from donors wherever they are

With Kindsight, it’s easy to find the right people to invite to your public or VIP launch event. Use ascend (our fundraising CRM) to build your guest list, identify best-fit donors with iwave, and combine it with the power of engage to draft personalized email invitations for your event.

3. Send personalized supporter outreach

Nobody wants to feel like they’re just one name on a very long list. Whenever you call, write to, or email your supporters, personalize the message as much as possible. This is one capital campaign fundraising idea that you just can’t skip.

Personalization goes beyond your donor’s first name. Here’s what else you can do, if you have the data:

• Promote specific fundraising opportunities, based on previous engagement
• Suggest a donation amount, based on giving history
• Highlight specific impact stories, based on category affinity
• Suggest local fundraising events, based on geolocation data
• Promote social media content, based on previous interactions
• Run a countdown timer, based on the user’s time zone

You can also use information like recency, frequency, and affinity to sectors to plan and send truly tailored emails to your supporters.

Need guidance for your next capital campaign?

Learn about when and how to start your capital campaign, what to do in each stage, and get expert tips for navigating all the crucial elements of a capital campaign.

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4. Start a pledge drive

What do you do when you have donors eager to give, but they don’t have funds available immediately? Encourage them to make a pledge. Adding a pledge drive to your capital campaign allows you to capture interest and commitment, then collect those donations at a later date.

On your pledge card, be sure to include:

• Name of the campaign
• Donor’s name
• Pledge amount
• Payment frequency and/or number of instalments
• Date of first payment
• Donor’s contact details
• Your nonprofit’s contact information

Manually keeping track of pledges and planned gifts is challenging, especially if you receive a lot over the course of multiple years. Be sure to use a purpose-built CRM to help with the management and simple gift processing, as well as the handling of complex pledge commitments.

5. Promote matching gifts

Gift matching is a valuable way to make eligible donations more significant, and it won’t cost your supporter any extra. But donors don’t always know it exists, which is why promotion is essential.

Many employers run giving programs where they’ll match an employee’s donation up to a certain amount or by a certain percentage. You can also look for independent gift-matching partners too — like a corporate sponsor that’s willing to match donations up to a specific figure, like $15,000.

Increase your chances of attracting matching gifts by:

• Highlighting it as an option to your donors
• Explaining how they can check if their donation is eligible
• Promoting a sponsor or partner’s donation matching offer
• Offering donors an easy way to get their donation matched

6. Host a high-profile gala

Gala events allow you to invite your major donors, influential partners, and board members to experience an evening of celebration and philanthropy. Thanks to their high-calibre guest lists, galas are ideal for raising a large amount of funds in one night.

Planning a fundraising gala is time and resource-intensive, so you want to make it as successful as possible. Here’s how to increase donations on your gala night:

• Make it attractive to buy a table vs. single tickets — by offering a discounted rate for a whole table, or adding extra perks like free drinks or free raffle tickets
• Offer upgrades like drinks packages or VIP experiences
• Add a raffle, prize draw, or auction
• Announce a target amount of money to raise on the night
• Display your real-time fundraising progress
• Accept donations through a range of payment methods

Our fundraising gala guide covers the planning steps in detail. Combine your on-the-day event activities with engaging pre-event communications and personalized thank-you notes to continue cultivating those meaningful relationships.

7. Plan family or community events

While gala events can be lucrative fundraisers, they can be exclusive in nature. Open up your fundraising opportunities to your broader community with family-focused or local events.

Successful public phase events are a combination of good planning, a suitable budget, the right team, and a creative mind. Use your donor giving data to identify the types of events that are likely to be popular, and survey your supporters to understand what they’d like to see.

Popular fundraising events include:

• Walk-a-thons
• Golf tournaments
• Bake sales
• Garage sales
• Raffles
• Trivia nights
• Workshops or classes
• Beach parties
• Family picnics
• Community volunteering days

To make your capital campaign fundraising idea even more successful, find a way to tie it to your mission, goal, or community. Get students involved with a car wash or community help day for your new college building fundraiser, or host a healthcare themed quiz to raise money for your hospital extension project.

8. Plan a giving day

Whether you choose an already-established day like Giving Tuesday, or create your own day of giving, this time-limited experience can drive donations — which is especially helpful if you’re nearing the end of your capital campaign fundraising.

Here’s how to plan your way to a successful giving day:

• Choose your giving day (e.g. Giving Tuesday, New Year, or another date)
• Countdown to the day with emails and social media content (Check out our Giving Tuesday templates for platform-specific ideas.)
• Send tailored messages to different audience segments with suggested donations
• Share promotional graphics that your supporters can use to promote your cause
• Make it easy for people to donate with an online donation page
• Share updates on your progress in real-time
• Add a final call for people to donate towards your cause before the end of the day

If you have the resources, consider making a video to promote your giving day campaign. Research shows that including a video in your initial campaign email can increase click rates by 96% — which means more potential donations coming your way.

9. Tap into your capital campaign donors’ networks

If you’ve invested in donor relationships and stewardship, you’ll have a collection of loyal supporters. Extend your valuable relationships even further by tapping into their network of friends, family members, and professionals. 

Turn your existing donors into a catalyst for even more donations with:

• A library of images and marketing materials they can share with their network
• Eye-catching, shareable graphics on your social media pages
• A clear website that explains who you are and what you do
• A membership program that rewards existing members when they refer someone
• Peer-to-peer fundraising or crowdfunding campaigns

Your supporters are keen to see you succeed, but they also lead busy lives. Make it as easy as possible for them to share your campaign with loved ones and potential donors during your public phase.

10. Research and apply for grants

It’s not just major donors and your supporter base that can help you reach your campaign goals. As you plan your capital campaign, look out for grants that could give you a much-needed cash boost or raise your profile.

Here’s how to approach the grant application process with capital campaigns in mind:

• Research to find suitable grants to apply for
• Learn what the funder or investor is looking for
• Build a relationship with the funder
• Start building your case for funding
• Write a tailored grant application to match their needs
• Submit your application before the deadline
• Stay in touch throughout the process

11. Work with a capital campaign consultant

Capital campaign planning and management is a significant task, and sometimes you need to bring on extra support to help things run smoothly. As you build out your team in preparation of your public launch, you might realize a consultant could help you scale.

Capital campaign consultants can help: 

• Develop a strategic plan and capital campaign timeline
• Complete a feasibility study or case for support
• Identify and safeguard against risks
• Prepare a capital campaign budget
• Bring in specific expertise
• Train staff members
• Launch your public phase
• Fill in gaps in your existing team’s knowledge
• Source additional support in marketing, promotion, or fundraising event management

It’s easier for larger nonprofits and educational establishments to access fundraising consultants, but smaller nonprofit organizations can benefit from external advice too. If you can’t hire a consultant for the whole project, consider whether you can bring in expertise in the planning phase, or to help you with one area — like building a fundraising events plan.

Want to go more in-depth with capital campaigns?

This ebook dives into the basics of each phase of a capital campaign and guides you through the hurdles that arise in each.

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Take your project to the next level with these capital campaign fundraising ideas

The right fundraising ideas and initiatives can mean the difference between a successful campaign and struggling to hit your fundraising goal. Use this guide to help you put together a strategy filled with ideas designed to raise a large amount over several years.

For an in-depth look at capital campaigns, read our Capital campaign guide for nonprofits.

The post 11 Effective capital campaign fundraising ideas for nonprofits appeared first on Kindsight.

Donor funnels are there to help you map and manage this process. In this article, we’ll walk you through each stage of the process and look at how you can use your donor funnel and supporting “donor journeys” to take your fundraising to the next level. 

What is a donor funnel?

A donor funnel is a strategic framework used by nonprofit organizations to drive the donor recruitment process. Adapted from traditional marketing strategies, it’s made up of five key stages that work to raise awareness and turn first-time donors into lifelong supporters.

How does it differ from a nonprofit marketing funnel?

Donor funnel. Donation funnel. Nonprofit marketing funnel. It doesn’t matter which term you use. They all refer to the same process and are there to help you turn passive interest into active support. 

The benefits of using a donor funnel

It might feel overwhelming, but it is well worth taking the time to understand the donor funnel process. Why? Because when you work each stage together, donor funnels can help you:  

• Clarify your strategy: Fundraising is a multi-faceted, multi-disciplinary practice. A donor funnel helps organize your ideas and bring clarity and flow to your fundraising efforts.
• Pace your practice: When funds are tight and targets are high, it’s tempting to jump straight to the ask. A well-planned funnel will help pace your approach and give prospective donors the time and space they need to engage. 
• Build deeper relationships: Good fundraising means putting your donors first. Use your donor funnel to flip the narrative and walk the process through from a donor’s perspective. 
• Improve conversion rates: Tracking metrics at each stage of your funnel makes it easier to identify pain points. For example, maybe you’re great at generating interest but struggle with retention. A donor funnel makes these gaps visible so that you can take action.

All of the above will help streamline and focus your team’s time, energy and resources. It might feel strange at first—working through each step of the donor funnel rather than cutting straight to the ask, but it’s an important process to follow. After all, the stronger your donor relationships, the higher your return on investment. 

What does it take to go from prospect to major donor?

Our guide shows you the strategies and tactics you need to effectively move prospects through the donor cultivation cycle.

Get the cheat sheet

Understanding the five stages of the donor funnel

In this next section, we’ll walk you through each of the five different stages of the donor funnel and show you how the process connects and flows. Remember: not every prospect will move through every stage, so don’t worry if (when) donors drop off. What matters is that you’re tracking your progress and making smart adjustments to keep improving.

Stage 1: Initial awareness (generating prospects)

It starts with the awareness stage. As the name suggests, the goal here is to spark connections with potential new donors. Don’t try and do everything at once. In this first stage, you’re looking to focus on three key things:

1. Getting people to hear (and remember) your nonprofit organization’s name.
2. Building a basic understanding of your nonprofit’s raison d’être.
3. Generating interest and offering a clear pathway for people to find out more. 

To reach people who might be interested in supporting your cause, you need to be where they are. Many nonprofits use platforms like LinkedIn, TikTok, and Instagram to drive awareness. Others build visibility through media exposure (think feature articles, podcasts, and radio) or digital and outdoor advertising like Google Ads, billboards, and transit advertising. 

Once you’re out there, you need to make it quick and easy for people to follow up—for example, by adding a QR code or a link to your website.

Top tip: The more you know about your target audience, the easier it is to choose communications platforms and channels that align.  

Stage 2: Interest (turning prospects into leads)

This next step helps deepen connections and turn “top-of-the-funnel” prospects into engaged leads. By the time you’re done, your potential new donors should:

1. Understand and empathize with your “why”.
2. Trust your nonprofit organization as experts in the field.
3. Feel a sense of urgency and need to take action.

With so many nonprofits competing for attention, turning awareness into genuine interest isn’t easy—but it can be done! Once again, social media plays a key role. Creative and engaging communications (video reels, polls, live chats and webinars) are a great way to encourage people to find out more. Long-form content like newsletters, email marketing, blogs, and educational resources can also help showcase your expertise and add value. 

No matter which tactics you use, engagement is always a two-way street. If someone messages you or attends an event, take the opportunity to get to know them. The more you learn about each other, the closer they’ll feel to your cause and the more likely they are to support it.

Top tip: Make data collection a priority. Use newsletter sign-ups, event registrations, and gated content —like information resources—to gather emails and build direct connections.

Stage 3: Involvement (turning engagement into support)

To move someone from engaged to involved, they need to take active steps to support your organization. This doesn’t have to mean giving money. What you’re looking for here is:

1. Proactive engagement and a response to a specific call to action.
2. A positive experience that they will want to repeat.
3. To show potential donors that their support matters.

There are many ways people can contribute without donating. Some might share your social media posts or join an online challenge (#NoMakeUpSelfie anyone?) Others might sign a petition or participate in an event. A few rare gems may even volunteer their time.

Whatever form their support takes, it’s important to treat every action as the gift that it is. Take the time to say thank you and recognize their contribution. This is their first experience with you, so set the tone and show them that their support—financial or otherwise—makes a difference.

Top tip: Personalizing content doesn’t have to be time-consuming. A good CRM with AI and donor data included makes automating and sending tailored notes and communications quick and easy.

Stage 4: Investment (securing that first donation)

This is the point where prospects become first-time donors. Don’t expect people to read your mind. If you want donations, you have to ask for them, so make sure your supporters know: 

4. Why their support is urgent.
5. Exactly what you need and how their money will help.
6. The impact their generosity will have. 

There are lots of different ways to make an ask. For individual donors, cross-channel campaigns tend to deliver the best results—pairing the personal touch of direct mail with the reach and immediacy of digital channels. Plan ahead and be intentional. You’ve invested time building the relationship, so don’t lose momentum now.

Above all, make sure your donation process is quick and easy. You can do this by including pre-paid envelopes in your mailing packs, creating a campaign page for your website, offering multiple payment options, and making sure your online donation form is secure and user-friendly.  

Top tip: Don’t forget to say “thank you”. Donors who are thanked 48 hours after they’ve given are four times more likely to give again. 

Stage 5: Stewardship (turning one-time donors into long-term supporters)

Relationships take years to build and only moments to lose. That’s why this final stage is so important. With consistent care, a first-time donor can become a regular supporter. They may even go on to be a major donor or leave a legacy gift.

To make that happen, you need to:

1. Keep donors engaged with regular, meaningful updates.
2. Deepen the emotional connection by sharing powerful stories and impact data.
3. Actively guide supporters up the donor pyramid.

Of course, this kind of relationship-building doesn’t happen overnight. Stewardship is a long-term investment built month by month, year by year. But it’s worth it. Retaining donors is far more cost-effective than recruiting new ones, so make sure you have the systems and strategies you need to keep them involved.

Top tip: Don’t be afraid to ask. People won’t convert to a regular gift or leave a legacy in their will if they don’t know you need one.

How to use the “donor journey” to bring your donation funnel to life  

With your donor funnel up and running, it’s time to take your fundraising and marketing strategies one step further. Imagine your donor funnel is the map. By layering in tailored “donor journeys” you can start charting the individual routes different groups will take.

An individual giver, for example, might discover you on Instagram, visit your website to learn more, take part in a social media challenge, and donate through a digital campaign. A major donor, on the other hand, might read about you in an article, follow you on LinkedIn, attend an online event, and meet you for coffee—only giving after a series of one-to-one interactions and a carefully timed ask.

It’s the same funnel. Just a different donor journey. 

To set these paths, start by segmenting your donors into distinct groups and building a foundational set of donor profiles (snapshots that define donors groups by demographic, motivations, and interests). With these in hand, you can use your funnel to map out the tactics and tools needed to bring each stage of the five stages—and your final donor journey—to life.

Intrigued? Read our blog on how to optimize donor journeys.

Practical tips to boost donor engagement

So there you have it. A step-by-step guide to help you understand the world of nonprofit marketing funnels, generate new prospects, and build lasting support. To help you on your way, here are a few final tips, tricks, and tactics to boost engagement and make sure your nonprofit organization stands out from the crowd. 

Tip 1: Variety is the spice of life

Increase your chances of support by offering multiple ways for people to get involved. Campaigns, challenge events, sponsorships, and volunteer opportunities all draw people in. The more touchpoints you create, the stronger your relationships will be.

Tip 2: Connect without asking for cash 

Donors are people, not ATMs. Wherever possible, connect in a low-pressure environment where the goal is simply to build a relationship. This might be an event, a newsletter, or a thoughtful update—anything that creates connection without an ask. 

Tip 3: Tell stories and share impact

People give to people, not organizations. Raise the voices of your community, share real-life stories, and use impact data to show people how their support is making a difference. 

And finally: let your passion and enthusiasm for the cause shine through. At the heart of every fundraising and marketing strategy are people. So embrace the process. Take every chance you can to get to know your supporters, and use your donor funnel—and accompanying donor journeys—as a tool to guide and build deep, long-lasting relationships.

The post How to make your donor funnel work for you appeared first on Kindsight.

Types of planned gifts by category

While there are many types of planned gifts, they can be grouped into two main categories: deferred donation and immediate donation.

Deferred donations are received at some point in the future, typically after the donor has passed away. Immediate donations are transferred to your organization upon commitment of the gift, giving you immediate resources to fund your mission and programs. However, immediate donation planned gifts often require ongoing management, including regular payments back to the donor.

Deferred donation planned gifts

Deferred donation planned gifts are committed within a donor’s lifetime, but will not be received by the organization until after the donor’s death. There are two primary types of deferred donation planned gifts:

Charitable bequests and estate gifts

Charitable bequests are the most common and accessible types of planned giving. With a bequest, a donor names your organization in their will or trust, making you a beneficiary of their estate.

Donors may dedicate a specific dollar amount or percentage of their estate to your organization, or they may request that the remaining value of the estate be given to your organization after all other obligations have been met. Some bequests also come with strings attached, ensuring that a gift is only made if certain conditions are met.

Bequests offer a number of benefits. As a portion of the donor’s total estate, the value of a bequest planned gift is often higher than gifts that a donor is willing or able to make in their lifetime. There is no upfront cost, and, as one of the simplest planned gift options, they’re easy to explain and promote with prospective donors.

Clear communication of the bequest language is key to understanding the type of planned gift that has been made and the obligations your organization may have. Plus, your organization must be able to effectively track and steward bequest donors—often called legacy donors—throughout the life of their planned gift, whether that’s two years or twenty. 

Retirement plans and life insurance

Many people do not utilize the full extent of their retirement savings or life insurance when they die. That leaves a number of funds remaining for other purposes, including an inheritance to the individual’s family or a charitable contribution. 

Many donors will commit a portion of their retirement savings or life insurance to an organization. These funds are distributed after the donor’s final expenses are paid, and have the potential to be quite large, depending on the total value and lifetime needs of the donor. 

Immediate donation planned gifts

Immediate donation planned gifts allow donors to make a charitable contribution during their lifetime. However, unlike traditional cash donations, these types of planned gifts allow the donor to receive income from the gift.

Immediate donation planned gifts include:

• Charitable gift annuities
• Charitable remainder trusts & unitrusts
• Pooled income funds
• Charitable lead trusts
• Retained life estates

Charitable gift annuities

With Charitable gift annuities, a donor makes a gift directly to your organization in exchange for fixed payments for life. After the donor’s death, the remainder of the gift goes to your organization to support your mission.

These gifts not only put valuable funds in the hands of your organization right now, but also help to protect your donor’s financial future. In addition to ongoing payments, charitable gift annuities allow donors to receive tax credit for the gift during their lifetime. 

Charitable remainder trusts and unitrusts

To establish a charitable remainder trust, a donor places financial assets in a trust. The trust pays income to them (or others) based on a percentage of the total for a set period of time. That time period may be defined as a certain number of years or the lifetime of the donor. At the end of the period, the remaining balance is paid out to your organization.

Like charitable gift annuities, these types of planned giving allow the donor to receive immediate tax credit for their donation while also receiving income from the value of the trust. Charitable remainder trusts also allow donors to avoid capital gain and estate taxes on the funds.

Charitable remainder unitrusts are similar to charitable remainder trusts, but allow for additional flexibility. Charitable remainder unitrusts can be funded with a wide range of assets, from cash to real estate to stock. Rather than paying the donor a fixed amount over the lifetime of the trust terms, the donor received a percentage of the fair market value of the trust assets. This number is reevaluated and adjusted annually.

Pooled income funds

Pooled income funds combine donations from a number of donors, then invest those collective funds. Each donor receives a portion of income from the investment aligning with their share of the total pool, based on their original contribution amount. While the funds are invested, organizations typically cannot directly access the funds until a donor has passed away, protecting them for future use.

Charitable lead trust

A Charitable lead trust puts your organization first, paying a fixed income to your organization for a set period of time. After that time, the remaining assets are returned to the donor distributed to their heirs. CLTs are often used in estate planning for wealth transfer, as they help to reduce the burden of estate taxes.

Retained life estate

For donors in possession of valuable property assets, a retained life estate transfers property ownership while allowing the donor to enjoy the property for the remainder of their life. The donor receives tax credits for their donation during their lifetime, and your organization retains full right of ownership upon the donor’s death.

Streamline your planned giving strategy.

In this quick guide, learn the types of planned gifts, how to identify planned givers, and how to use planned giving scores and analytics.

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Best practices for receiving, managing, and stewarding every type of planned gifts

Planned gifts offer many benefits to both organizations and to the donors that fund them. However, these decisions should not be made lightly. Before making a planned gift, donors should consult with their tax, finance, and legal advisors.

Likewise, organizations should thoughtfully consider the type and terms of these gifts before accepting them—especially immediate donation planned gifts. Immediate donation planned gifts are typically more complex than bequests and often involve legal agreements, actuarial calculations, and investment planning that require expert guidance, whether within your organization or with the help of outside advisors. Learn how to start a planned giving program.

Empower donors and strengthen missions through planned giving

Planned giving presents a meaningful way for donors to leave a lasting legacy while providing vital support to the missions they care about. From deferred options like charitable bequests and estate gifts to immediate contributions such as charitable annuities and remainder trusts, these gifts come in many forms, each offering unique benefits to both donors and organizations. By understanding the types of planned gifts and their potential impact, nonprofits can better position themselves to nurture these long-term donor relationships.

Now is the time to start meaningful conversations with your supporters about planned giving. By opening the door to these opportunities, you create pathways for donors to make a profound and lasting impact. What steps will your organization take today to inspire and encourage your community of donors?

For an in-depth look at planned giving, take a look at our Planned Giving 101 ebook.

The post Understanding types of planned giving appeared first on Kindsight.

Whether you’re a seasoned campaign manager or this is your first time running a major campaign, there’s always something you can learn from the success of others. Follow these capital campaign best practices to hit your goals and build a stronger nonprofit in the process.

1. Assemble a strong capital campaign planning and execution team

Behind every successful capital campaign is a dedicated team of staff, board members, and volunteers. With the average nonprofit capital campaign spanning 3-4 years, you need a strong team that can support you from start to finish.

Your campaign planning and execution team handles everything from managing timelines and tracking progress, to donor outreach and relationship building. Assemble your staff members based on their strengths, experience, and ability to work well together.

The size of your campaign team depends on your organization and project, but could include:

• Campaign chair
• Executive leadership team or director of development
• Board members
• Planning committee
• Steering committee
• Staff members — Campaign or project manager, fundraising manager, marketing manager, volunteer coordinator
• Volunteers
• Major donors

As you build your team, look for individuals with strong organizational and communication skills. Include individuals who know how to use fundraising data to plan activities, raise money, and build community support. And passion and enthusiasm matter too—especially in your volunteers. 

Need guidance for your next capital campaign?

Learn about when and how to start your capital campaign, what to do in each stage, and get expert tips for navigating all the crucial elements of a capital campaign.

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2. Conduct a capital campaign feasibility study

Before you begin your strategic planning, you first need to make sure your proposed project goals align with your donor’s priorities. Organizations that conducted a feasibility study were twice as likely to build stronger relationships with major donors, which leads to a positive impact on donations.

Your feasibility study allows you to understand the opportunity to raise money from potential donors. It also identifies key donors and volunteers who can play a pivotal role in supporting and championing your campaign.

Most nonprofit organizations hire a capital campaign consultant to take care of this step for them, but with the right tools and knowledge you could conduct the study in-house.

3. Develop a detailed campaign timeline

Capital campaigns require a lot of planning and organization, and a campaign timeline will keep you on track. Establish a clear timeline that spans from start to finish, with key phases and deadlines.

A typical nonprofit capital campaign timeline includes:

• Campaign planning phase
• Implementation (quiet phase)
• Campaign kick-off
• Public phase
• Follow-up and ongoing stewardship

Your campaign timeline doesn’t just guide you on the next steps, it also provides valuable momentum for your project. There may not be noticeable progress every day, but your timeline helps illustrate that you’re moving forward towards your goals. Learn more about capital campaign timelines.

4. Create a realistic capital campaign fundraising budget

Capital campaigns are expensive. A typical capital project will cost around 10% of your end capital campaign fundraising goal, so it’s essential to set a strict budget and monitor your finances.

Bring your team together to discuss spending, and work out a realistic budget based on available funds. Decide which spending is a priority, how much to allocate to each area, and when you plan to spend those funds.

Common categories for your campaign budget include:

• Professional fees
• Construction materials
• Fundraising events
• Education
• Equipment
• Marketing materials

Remember to account for the unexpected. While you can’t predict every price increase or unforeseen cost, it’s sensible to set aside extra funds for contingencies.

5. Build a strong capital campaign case for support

Donors need a reason to engage with your capital campaign. Your feasibility study shows evidence of interest, but you’ll still need a strong case for support (a.k.a. a case statement).

A case statement explains the need for your capital project and demonstrates how it benefits the community. It becomes a central document that your team and stakeholders can refer to, guiding them on donor prospecting, marketing initiatives, and outreach.

Your case for support should include:

• Overview
• Mission and vision
• Leadership
• Current situation or challenge
• Opportunity or solution
• Project plan and budget
• Project timeline
• Summary
• Contact details

While your original document may be long and detailed, it’s a capital campaign best practice to create more shareable versions for key stakeholders, major donors, and your wider community. Tailor your messaging to each audience for the biggest impact.

6. Prioritize stewardship after the campaign

The work doesn’t end when your successful capital campaign does. Stewardship is crucial for maintaining relationships with donors for future campaigns. As your campaign comes to a close, have a plan ready for how to stay in touch with donors and nurture those relationships.

Effective donor stewardship includes:

• Personalized thank-you messages
• Donor recognition or appreciation events
• Showcasing their impact
• Regular email updates
• Social media shoutouts
• Donation anniversary cards or messages
• Highly personalized communication

Being intentional about stewardship ensures that donors stay committed to your cause beyond a single campaign, helping secure support for future nonprofit fundraising campaigns.

7 Useful tips for your next capital campaign

Build on the foundations of best practice with these expert tips, designed to help you take your future capital campaigns to the next level.

1. Set realistic yet ambitious campaign goals

A clear and compelling capital campaign goal motivates donors to give. Set a goal that aligns with your mission and vision, and the results of your feasibility study. Your goal should be achievable yet feel ambitious, as you want people to encourage as much support as possible.

Under your main goal, create sub-goals or smaller milestones. These interim targets keep momentum going and give you regular wins to celebrate — a must-have in a years-long capital campaign.

Share your goals openly, create gift range charts, and explain to donors how their contributions can help you reach your target. Celebrate milestones, share progress updates, and bring your donors along with you on the journey.

2. Secure major donations before your public launch

The 80/20 rule rings true for capital campaigns, with the top 20 donors accounting for 70-80% of your overall funds. You need these major gifts to reach campaign success, so it’s essential that you solicit and secure them early on.

It’s difficult to get engagement from your wider donor base when you’re starting from zero. A capital project that’s already on its way to being funded is a more attractive option. Engage with your major donors and board members early to bring in those much-needed funds that inspire others to give.

3. Engage donors with personalization

Generic communications won’t cut it for this fundraising effort. Capital campaign best practices call for personalizing your messaging as much as possible, to create targeted, unique, and thoughtful donor outreach.

Tailor engagement strategies to donors’ giving history, interests, and preferred types of communication. Roll out personalization at scale with the help of purpose-built AI, and invest in personal phone calls and handwritten messages for major donors.

This hyper-personalized approach is essential in the quiet phase while you’re engaging major donors, but it’s also effective throughout the public phase and post-campaign phase too. A personal touch motivates individuals to give, and can help you build long-lasting donor relationships.

4. Tell a compelling story

Your goal might be a financial one, but it’s the stories you tell that will captivate donors and inspire them to give. Create a compelling story that illustrates where you are now, what your goal is, and why this project is essential for your community.

Explain how you arrived at the idea for your capital project, and who helped you along the way. Paint a picture of what the future will look like with your new building, community program, new facility, or improved endowment fund in place.

5. Use your most loyal volunteers

Volunteers are a major part of any nonprofit organization, but they’re especially valuable when it comes to capital campaigns. Call on the support of your most loyal, helpful, and talented volunteers to help you pull off a successful campaign.

Onboard key players to your campaign committee, and distribute roles based on experience, enthusiasm, and interest. Give your volunteers access to your case statement and all the materials they need to help you expand your reach and build relationships with donors.

6. Make the most of the quiet phase

The quiet phase is where you’ll draw in the majority of your campaign funds, and the focus is on major donor engagement and solicitation. But there’s more you can do during this long phase, without disclosing your specific plans to the public.

Use this time to prepare campaign materials so you have everything ready for your public phase. Work on stakeholder engagement, especially with your board members. Invite feedback from key contributors and act on it, adjusting your goal, budget, or plan accordingly.

7. Consider bringing in a nonprofit capital campaign consultant

While you can see success with an in-house project team, many nonprofits seek out the expertise of a fundraising consultant — at least for part of the capital campaign process. This external support can be a valuable way to round out your knowledge, complete prospect research, or benefit from leadership in the planning phase.

Determine whether there are any areas of your project that you’d benefit from expert support with, and see whether there’s enough room in the budget to invest. You might even want to raise money to increase your budget, if there’s a likelihood that the investment could lead to a higher chance of fundraising success.

Want to go more in-depth with capital campaigns?

This ebook dives into the basics of each phase of a capital campaign and guides you through the hurdles that arise in each.

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Improve your chances of success with these capital campaign best practices

Capital projects are big, expensive, and incredibly important, which is why your planning process and execution need to be strategic. Use these best practices and expert tips to give you a strong foundation to work with next time you’re planning a capital campaign.

Looking for some inspiration? Check out our list of the top capital campaign fundraising ideas.

The post 7 capital campaign best practices appeared first on Kindsight.

In this article, we’ll take a closer look at the essentials of nonprofit corporate partnerships and share practical tips to help your team find and build long-term relationships.

What are nonprofit corporate partnerships?

A nonprofit corporate partnership is when charitable organizations and for-profit companies come together in pursuit of a shared goal. While some partnerships are linked to a single event or limited timeframe, others evolve into long-term initiatives that bring huge benefits to both organizations. 

Understanding different types of corporate partnerships

From financial support to volunteer opportunities, partnerships with for-profit companies can unlock all kinds of creative possibilities. Here are some of the most popular:

Grant-based giving 

The most traditional form of corporate philanthropy, companies donate a portion of their profits through a foundation, typically through a formal application process. 

Workplace giving

Think individual giving, but in a company context. Employees make direct donations to nonprofit organizations through their paycheck, or via ‘Charity of the Year’ partnerships. 

Corporate matching gifts 

A great way to engage employees, companies offer matched-funding to people raising money as part of challenge events and fundraisers.

Corporate sponsorship opportunities

Is your event short on budget? Corporate sponsorships are a great way to close the gap, with companies paying to support an event or program in exchange for brand exposure. Make sure to use proven effective ways to ask for an event sponsorship.

Skills-based volunteerism

Also known as pro-bono support, employees donate their time and skills to advance a nonprofit’s mission — for example by providing legal support at no cost.  

Cause marketing

A personal favorite, cause marketing is a truly creative process that sees companies donate a percentage of product profits to a nonprofit organization, often co-branding initiatives to help raise awareness and boost sales.

The benefits of building nonprofit corporate partnerships

With so many options available, it’s no wonder nonprofit organizations want to develop corporate giving programs. For many, these partnerships aren’t just a way to raise money. They are also an important opportunity to expand their reach and build their brand profile.   

For companies, nonprofit corporate partnerships don’t just provide a way to give back. They are also a strategic business decision — one that can help boost employee engagement, raise visibility through corporate sponsorship, and build their reputation for corporate social responsibility.  

10 steps to building great corporate nonprofit partnerships

With over six million for-profit companies (employer firms) registered in the US, launching a new corporate giving program can feel overwhelming. The following steps are designed to help you navigate this, find potential corporate partners, and build productive, long-lasting relationships. 

Step #1: Understand your value

Successful partnerships are built on shared value and will offer for-profit companies a clear win-win. Before you start researching potential corporate partners, take some time to understand your nonprofit value proposition. Questions to ask include:

• Why should for-profit companies choose you?
• What unique benefits or value can you offer?
• How will you engage company employees? 
• Can you offer exclusive experiences, like program visits? 

While most nonprofit organizations offer impact stories and data, it’s the extras — think shared PR, corporate sponsorship and volunteer opportunities — that will set your organization apart. 

It’s also important to consider how your nonprofit organization can help for-profit companies reach their business and corporate social responsibility goals. Being able to clearly articulate this added value is key to building strong, successful partnerships.

Top tip: Why not use a tiered partnership model that offers clearly defined benefits for different levels of corporate philanthropy? 

Step #2: Focus your search

No business will give “just because.” Map out the industries and sectors that align with your nonprofit’s mission. For example, if you’re a health-focused nonprofit organization, you might explore partnerships with pharmaceutical or medical device companies. If you’re in education, publishers, digital learning platforms, or tech companies could be a good fit.

Top tip: Review your current donor base to see if any companies show up more than once. This could be an opportunity to start deepening your relationship. 

Step #3: Identify top potential corporate partners

Once you’ve defined your target sectors, start researching individual companies. To find your top prospects, you will need to rank them against a clear criteria. For example:  

• Strategic match: How closely do your mission and values align?
• Giving patterns: Who do they give to, how much and how often?
• Commitment: Have they publicly committed to delivering corporate social responsibility?
• Brand reputation: Are there any ethical concerns surrounding company practices?
• Connections: Do yo have any connections or contacts you can leverage?

Top tip: Don’t go it alone! Use prospect research tools like Kindsight’s iwave to uncover valuable insights into company giving histories and priorities.

Step #4: Connect with the right people  

Once you’ve identified your potential corporate partners, you need to find a point of contact. Some companies will have a very clearly defined process, guidelines, and connection point. Others will require a little bit more background research. 

It’s worth the effort. Taking the time to find and connect with the right person will increase your chance of a positive response.  

Top tip: Don’t just reach out to C-suite leaders. Managers and coordinators are often more accessible and willing to engage in discussion around nonprofit corporate partnerships. 

Step #5: Map your networks 

You don’t need to be an influencer to have a powerful network. Even if you’re early in your career, you will be surprised how many people you know. Add your team, board, and CEO into the mix, and you’ll soon build a map of contacts who can help open doors.   

Top tip: You can use LinkedIn to search for team members at your target company and check for any first or second connections. Don’t hesitate to ask for an introduction!

Step #6: Count conversations, not cash 

Good partnerships take time. Unless the company has a formal application process, sending a proposal too soon can turn people off. At this stage, your goal is to start a conversation. The more you have, the more likely you’ll receive an invitation to apply.   

Framing your work this way— counting conversations before cash — can help take the pressure off. It’s also a great way to track your progress and see momentum build over time. 

But what to say?

Your approach will vary depending on who you’re talking to, and whether or not it’s a warm or cold lead. That said, it’s important to keep your first message short, friendly, and professional, with a clear signpost to next steps.

Here’s a simple structure you can follow:

• A catchy opening
  Grab attention in a warm, relevant way. Reference something timely, shared, or specific to the person/company.
• Introduce your nonprofit organization
  Keep it brief! Just one or two lines on who you are, what you do, and why.
• Explain why you’re reaching out
  Be clear: you’re exploring potential partnership opportunities, such as X, Y, or Z.
• Strategic alignment
  Highlight how your missions overlap and the value your organization can bring. 
• Ask for a conversation
  Suggest a quick meeting or call to explore alignment further — keep it low-pressure.
• Close with thanks
  Always end on a polite note with gratitude and a simple sign-off.

Top tip: If it feels right, why not share a few light marketing materials? A simple brochure or flyer can add credibility and context to your message without feeling overwhelming. 

Step #7: Get to know your prospects

Once the conversation’s started, take every opportunity you can to get to know your donor, their needs, motivations, and priorities. You can use this information to build a truly bespoke proposal that will improve your chances of success. 

Top tip: Wherever possible, involve your prospective donor in shaping your ask. The more involved they are, the more invested they’ll be in a successful outcome!

Step #8: Prepare a compelling proposal

If you’ve got to this point, you’re already winning — so take some time to recognize your progress. While there’s no single format for the proposal you submit (they should each be highly tailored),  a good submission usually includes the following elements:

Executive summary
No one should have to skip to the end to see what you’re asking for. Start your proposal with a clear summary of the need, your goals, and the ask.

The challenge
Now’s your chance to tell your story. Explain the social issue you’re addressing and how your organization is making an impact. Share your expertise, headline results, and impact. 

The opportunity 
Now is the time to sell. Show how your work aligns with the company’s goals and how their support will benefit you — and them!

The idea
You’ve sparked their interest, so now it’s time to get specific. Share details on your proposed nonprofit corporate partnership, how it will work, and the roles of each partner. 

The benefits of partnering with you
Reinforce the value your organization brings. Highlight your unique strengths and the opportunities you offer, using your list from Step 1 to showcase what sets you apart.

Case study
Include an example of a similar partnership or project that highlights the impact of your work. This builds credibility and creates an emotional connection with the reader. 

Budget
Provide a clear breakdown of the financials involved, including what funds will be used for and any specific contributions required. Always be transparent and realistic about costs!

Other relevant information
Before closing, include any relevant additional details such as timelines, deliverables, or specific resources required.

A final call to action
End your proposal with a clear, compelling call to action that leaves your potential corporate prospect in no doubt as to what they should do next. 

Top tip: If you have the resources, consider getting your proposal professionally designed to help the receiving company picture how your brands could look together.

Step #9: Follow up and keep heart

Once your proposal is in, be sure to follow up. Don’t lose heart if it all takes time or the result is not what you expected. Building strong corporate giving programs can take years. Take a breath, ask for feedback and keep on going. Just because you weren’t successful this time, doesn’t mean you won’t be the next. 

How to maintain and strengthen corporate partnerships

Remember, the work doesn’t stop when the agreement is signed. To ensure partnership success and longevity, you need to build a relationship that maintains momentum over time — and with that, we come to our final step: 

Step #10: Focus on the Journey

Every corporate partner will need a bespoke donor journey. This will include all reporting and technical elements of your agreement, as well as some added extras. Keep the momentum going by regularly checking in, sharing ad hoc updates and organizational news. If it’s appropriate, you could even offer additional corporate sponsorship opportunities, or invite organizations (and their employees) to join challenge events or a behind-the-scenes tour.  

Examples of successful nonprofit corporate partnerships 

Looking for some inspiration? Here are few popular nonprofit corporate partnerships to help spark some ideas and creative thinking:

• Ralph Lauren and their “Pink Pony” campaign

A great example of cause marketing that turns their iconic logo pink. 100% of the purchase price is donated to Ralph Lauren’s fight against cancer. 

• Costco and the Children’s Miracle Hospital Network

Every May, customers across the US are given the chance to donate when they buy online or directly at a Costco warehouse. 

• Duolingo promotes employee engagement

Social impact activities include programs that encourage employees to join nonprofit boards, corporate matching gifts, and volunteer opportunities at local nonprofits. 

• CVS in support of the American Heart Association

More than a campaign, “Go Red for Women” is a movement that encourages people to wear red to mark World Heart Day, buy branded items, and donate at CVS registers.

Final thoughts 

Few areas of fundraising offer more room for creativity, innovation, and impact than corporate partnerships. Just remember: sustainable programs take time. Do your research, build real relationships, and create tailored, value-driven proposals — and you’ll have all the ingredients you need for success. 

The post A fundraiser’s guide to nonprofit corporate partnerships appeared first on Kindsight.

Grateful patient programs have existed for decades, but their adoption and sophistication are increasing as hospitals and healthcare systems realize their enormous potential—not just for financial impact but also for fostering lifelong engagement and philanthropic relationships. 

While not every grateful patient or family member will become a donor, many can evolve into key supporters, volunteers, and advocates. This makes such programs indispensable for nonprofit healthcare organizations.

What is a grateful patient program?

A grateful patient program is a healthcare fundraising system designed to intentionally cultivate relationships with past patients who have been positively impacted by your organization and would be willing and able to support your hospital today. These people are the success stories of your hospital and are proven to have the means to make a sizable donation to further your mission.

Some patients may reach out proactively to inquire about making a donation. However, most donors are acquired through strategic grateful patient fundraising efforts. This may include personal visits from board members or fundraisers, newsletters with hospital updates, and wealth screening to create a database of grateful patients with the capacity to give, followed by contact and cultivation for a major gift.

Want to power-up your Grateful Patient Program?

This guide is your roadmap for building a successful GPP, helping your organization turn moments of care into lasting contributions.

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How common are grateful patient programs?

According to a 2016 study by the Advisory Board, more than half of U.S. hospitals surveyed had implemented a grateful patient program, and this number has only grown. Over 50% of hospitals without a program have expressed interest in launching one, underscoring the increasing recognition of the value of this often-untapped donor base.

The potential of these programs is compelling. A 2007 study published by Accordant Health found that 88% of large gifts to healthcare organizations came from grateful patients and families. This statistic highlights the critical role that grateful patients play in securing major gifts. With the right strategies, healthcare institutions can significantly improve their fundraising outcomes by focusing on this potentially highly engaged group.

Benefits of grateful patient programs for healthcare institutions

Grateful patient programs offer the following benefits for healthcare facilities:

Ability to maintain a high standard of care

Grateful patient donations enable hospitals and healthcare institutions to continue to offer a high standard of care. They can also fund research, new equipment, or even a new wing.

Build a community of support

Grateful patient fundraising creates a community of loyal supporters around your healthcare organization. This group can play a significant role in enhancing future patients’ care, promoting your organization in the community, and providing a base for feasibility studies for future capital campaigns. 

Boost your institution’s reputation

Healthcare facilities with grateful patient programs demonstrate their focus on quality care. The fact that past patients would be willing to give to the hospital or clinic shows that your facility must be doing good things!

Benefits of grateful patient programs for patients

Grateful patient programs offer the following benefits for patients:

Excellent patient care

Healthcare facilities with grateful patient fundraising programs are especially motivated to facilitate a positive patient experience (and successful patient outcomes!) because the relationships formed could lead to a patient becoming a supporter in the future. 

Avenue for expressing gratitude

Grateful patients who are able and willing to give are provided with a tangible way to express their thanks. Showing gratitude, in turn, could have further physical and mental health benefits for the patient, including better sleep, improved mood, and better heart health.

Does your hospital need a grateful patient program?

As your hospital or clinic evolves with the latest healthcare trends, you’re eventually going to need some of the following:

• State-of-the-art equipment: Searching for the latest cancer treatment or imaging software?
• New employees and experts: Looking to grow your program or add a new department?
• Building expansions: Want to add a new wing or expand your grounds to help more people in the community?
• Facility renovations: Interested in upgrading to a more inviting facility with a modern design?

When you need to make a hefty purchase, one of the best ways to do so is with fundraised money. In such cases, it’s especially helpful to have a grateful patient program.

How to establish a grateful patient program

The following steps will provide a strong base for establishing a grateful patient program at your hospital or healthcare facility. It’s important to seek guidance from professional strategists as well as experienced legal and financial professionals along the way to safeguard your healthcare fundraising program’s effectiveness and success.

Step 1: Plan and prepare

A thorough planning and preparation phase is crucial for a successful grateful patient program. The following steps will provide clarity and help you avoid common mistakes.

1.1 Set clear goals

Define your goal in creating a grateful patient program. Do you want to increase the amount of funds raised by identifying prospects on your patient lists, cultivate a systemic culture of philanthropy, or raise the quality of care across the entire institution?

1.2 Identify the required resources

Grateful patient programs require funds as well as human resources to run.

• Determine your human resource requirements. You will need one or more paid gift officers, a prospect research manager, internal or external marketing services, and external fundraising or technology consulting services—especially at the beginning. Work out how many gift officers your program will need, whether your gift officers should also focus on annual giving, and whether your program will involve volunteers (and how many).
• Get quotes for tools and training if needed. Your team will need wealth screening tools, a donor CRM, and specialized training to get your program off the ground effectively.
• Create a budget. Develop a budget for your GPP which includes the aforementioned human resources or tools. This will help you calculate the ROI for the program. 

1.3 Reach out to internal stakeholders

A successful grateful patient program requires support from all of the relevant parties: medical staff, administrative staff, board members, the fundraising team, and the hospital’s CEO. Present the idea to all stakeholders with data-based projections demonstrating the potential impact of a grateful patient program, and explain what each person’s role would be. 

Hospital executives will need to consider the hospital division that will be affected by the program, what the staff can do to make it a success, and who will support the program and convince others of its importance. 

Adoption of the program can come in increments. Start with engaging the stakeholders (this could be practitioners, for example) who are the most enthusiastic and able to participate. Once you have had some initial success, other stakeholders will come on board. Work with leadership to establish a rollout plan and timeline for the program.

1.4 Research and plan for compliance with privacy laws

Healthcare organizations must comply with national and state legislation concerning donor privacy, including HIPAA and PIPEDA. Your team needs to become familiar with the relevant guidelines—as well as your institution’s in-house policies regarding patient privacy—and build safeguards to ensure they are followed. This includes policies about: 

• The people in your foundation’s office who will have access to patient information
• What types of protected health information can and cannot be used in the process of fundraising without the patient’s written authorization
• Documents patients and personnel will need to sign, and when

Tip: Many major donors would like to stay anonymous to the public to avoid unwanted solicitations. Make sure your team has solid privacy guidelines in place so that donors feel comfortable with their contributions.

1.5 Build an in-hospital recruitment team with designated staff and clear roles

From meeting with prospective donors to balancing your fundraising books, you will need a reliable and trustworthy team by your side. Take the time to carefully vet every role that’s needed and assign the right staff members to the position that best works with their strengths.

Gift officers engage in prospect research, keep donor data organized, and cultivate relationships with specific donors. They also coordinate with the wider fundraising team (including fundraisers, development officers, and advancement officers) to plan events and optimize the outreach strategies used. 

It generally works best to allocate certain donors to the gift officers who can cultivate the best prospects. These donors may be:

• Patients who are already major donors
• Patients who could be more philanthropic than they currently are
• Patients with the ability to give who have not yet supported a cause

Your gift officers will also provide valuable feedback on the solicitation and stewardship strategies that are and aren’t working, answering questions such as:

• Why does a prospect provide small philanthropic gifts despite a larger capacity to give?
• Has a prospect been correctly approached about making a contribution?
• Has a prospect found the right cause to support?
• Has a prospect been shown the value of a donation?

Prospect research manager: It’s a good idea to designate one person to be in charge of managing the program you use for uncovering potential donors.

Board members: Board members provide resources, organizational support, and help with activity planning. They also play an important role in promoting the program.

Hospital staff: Medical and administrative staff refer interested patients and promote the program when appropriate. It should be made clear that the hospital staff’s first priority is patient care and they should bring in a fundraiser or gift officer to provide patients with more information when needed.

1.6 Draft a wealth screening and solicitation plan

Establish a clear wealth screening and solicitation process which includes the following steps:

• Have a staff member preemptively run wealth screenings on patients as they are admitted to the hospital. Ideally, this would happen daily. Weekly or monthly screenings could work well for small or specialty organizations. Patient health is the top priority, so always consider the sensitivity of their treatment before next considering your program. Ensure they are stable and then send a representative from the hospital to ensure they’re having a pleasant stay.
• Establish internal communication channels for referrals from physicians, nurses, support staff, administrative staff, and volunteers. Make sure that medical staff only provide information about the program to patients who express an interest (and are able to call in a fundraising representative quickly and easily) to ensure they can focus exclusively on patient care.
• Have the same representative schedule a personal meeting with the patient following discharge to check up on their health. Do not solicit them during this time. Establishing a personal relationship will make patients more likely to become grateful donors in the future. Be judicious with the use of in-person meetings (as opposed to mail and phone contact) to ensure your team is making the most of its time and resources.
• Send a letter or schedule a phone call from the hospital’s CEO to check in on the patient and start the discussion about donation.
• Invite prospects to social and online events.
• Thank donors for their past support and encourage them to continue to donate.
• Send regular emails to continue attracting the attention of donors in meaningful ways.

Solicitation doesn’t start once your patient leaves your hospital. Make sure you and your team are establishing a solid solicitation plan that begins with cultivating a strong relationship while they are still in your hospital or clinic.

Tip: Ensure your entire team is on the same page as far as how you will reach out to past or current patients to include them in this program. If team members are following different strategies, you may find yourself over-contacting individuals at the risk of destroying a potentially valuable relationship.

Maximizing donations from grateful patients

Make sure you reach out to donors with high philanthropic indicators who don’t meet their full giving potential. Answer the following questions before taking time to contact them:

• Have they been approached correctly in the past?
• Has the cause for their lack of support been identified?
• Have they been shown the value of their donations?

By answering these questions, you’re ensuring your team receives a maximum donation that can support your hospital for years to come.

1.7 Establish clear policies and protocols

Your grateful patient program will need specific policies and protocols in addition to your solicitation workflow. It is best to get input from experts at this stage to ensure best-practice protocols from the beginning. The following are a few areas to consider and address:

• How will donations be recorded and where will that data be stored? Consider using a HIPAA-compliant donor CRM with a grateful patient module to centralize and secure donor data from the outset.
• How will your team manage donated funds and ensure transparency as to how they are used?
• Can patients choose which department or staff member to recognize with their donation? How will this work?
• When and how may major gift officers approach a patient?
• What information can (and can’t) gift officers request from patients’ physicians?
• When and how may physicians and staff advocate for the grateful patient program?
• What will be the lines of communication for raising and addressing concerns?

1.8 Establish KPIs for measuring your grateful patient program’s progress

Building a stellar grateful patient program requires tracking specific key performance indicators (KPIs) from the beginning and making progressive adjustments based on feedback and observations.

Track and measure your grateful patient program’s progress using KPIs such as:

Set aside time to review these KPIs regularly and work out the reasons behind the relative success (or lack thereof) shown by each metric. For example, a high rate of unsuccessful solicitations indicates that your patient screening parameters may need adjustment in order to reflect your patient base, via internal and external giving scores. It could also indicate a poor-quality wealth-screening tool. You will then be able to adjust your strategy accordingly.

Step 2: Perform wealth screenings and validate prospects

Now it’s time to start making the planned investments and identify your first potential donors through wealth screening.

Grateful patient wealth screening is the process of identifying potential donors within a pool of current or former patients or their families. Patient screening works by rating and segmenting patients according to propensity (or inclination) to give to charity, affinity (or linkage) to healthcare, and capacity (or ability) to give major gifts considering factors like real estate ownership, stock transactions, luxury asset ownership, and the prospect’s spousal information.

It can also be helpful to look at factors including age, area of care, distance traveled, patient satisfaction score, and the length of time the patient has been part of the community. These markers indicate how emotionally connected the patient feels to your institution and hence how likely they might be to donate to your healthcare nonprofit as opposed to another institution.

Effective and efficient patient screening helps you identify which patients fit your major gift donor profile while helping you establish positive relationships to encourage charitable donations. Once these individuals are identified, your development team can begin to cultivate those prospects into major gift donors.

Create an ideal donor profile (IDP)

Create an ideal donor profile (IDP) to determine the markers you’ll need to look for and prioritize. How often do they donate? How much do they have to give? Where does their affinity or linkage lie? 

This will vary according to the organization. For example, a research hospital may focus more on a prospective donor’s capacity while a community clinic could look at their affinity. Likewise, the research hospital may feel a major gift is anything over $150,000 while the community clinic would feel anything over $10,000 is a major gift! 

Choose a wealth screening approach

It’s important to designate how you would like to conduct wealth screenings—whether manually, through a third-party consultant, or using paid software tools. Using an intelligent prospect research software will not only save your team hours upon hours of time but will also ensure the information you find is up-to-date and accurate to maximize gifts.

A wealth screening or prospect research tool for a grateful patient program ideally needs the following features:

• HIPAA compliant
• Stays up to date with CCPA guidelines to ensure donors’ privacy
• Multi-factor authentication
• Secure File Transfer Protocol (SFTP) instead of general uploads
• Quick turnaround to ensure timely and up-to-date information about your patients
• Ability to segment donors and customize wealth or patient screening to the nature and goals of your nonprofit

Upload patient lists

If you decide to go with a software tool for wealth screening, follow these steps:

1. Download the screening template.
2. Populate it with patient data from your database. Screen immediate family members of patients as well. Include as much information from your donor database in the screening file as possible, including any available internal giving data. 
3. Upload the list to the wealth screening tool. Within hours or even minutes (depending on the wealth screening tool you use), you will receive internal and external scores for each prospect.

a. Internal giving data will give you a recency-frequency-monetary (RFM) score, based on the patient’s

 i. Total gift count

ii. Total gift amount

iii. Last gift date

b. External giving data will generally provide information about the patient’s propensity, affinity, and capacity to give based on publicly available data records.

When you cross-reference both internal (your database) and external (PRO database) views, you will identify the best prospects and be able to act on those opportunities faster and with increased confidence.1

Segment prospects

Strategically sort your database with donor segmentation—grouping donors by commonalities such as their age, connection with the hospital, philanthropic history, affinity, or capacity to give. This will enable your healthcare organization to make gift asks to patients with expert precision.

Manually sort and validate the results

Looking at your screening results, sort and prioritize according to the fields included in your input template. Maybe you want to sort the list by the primary caregiver, or you want to see if any patients are known VIPs. Once you have segmented the list, create profiles for each prospect. Within these profiles, you can view all the records that generated that prospect’s unique RFM and external giving score. 

Manually verify the records for accuracy and relevance to your prospect (very important!). As research and fundraising professionals, you understand your own prospects and donors more than any software tool can. 

Add and delete records where required. We recommend this as a best practice. Even the best screening solution can include false positives, but not every screening solution allows you to easily remove them and then refresh scores. Make sure you find a tool that does!

Prepare a report

After receiving your wealth screening results, you’ll want to prepare a report. This report will then go out to gift officers who will decide how to approach the patients. Whether you’re meeting in person or reaching out after they return home, you won’t want to wait more than three months to contact a potential donor.

With these tools in hand, it is easy to make progress with your grateful patient program. As patients move through your healthcare organization, you’re able to monitor their giving potential as a donor, specific to your assigned parameters. This is a great reminder to review your nonprofit organization’s moves management program and adjust as necessary.

Get the Moves Management cheat sheet.

Step 3: Create materials for your grateful patient program

You will need to create digital and print materials to create awareness about your new grateful patient program and create a point of connection between interested patients and your recruitment team. 

When it comes to fundraising for nonprofit hospitals, the biggest hurdle to overcome is often the lack of public awareness of a financial need. Communicate to your audience via your website and in fundraising brochures that you rely on their funding and how they can get involved.

The materials you will need include (but are not limited to):

• A dedicated page on your organization’s website. This should include online donation tools that can facilitate one-off donations, recurring giving, corporate gifts, donor-advised fund gifts, planned gifts, and merchandise sales for fundraising events.
• An email newsletter
• Social media posts
• Educational videos
• Physical pamphlets to place in easy-to-see locations in your facility
• Physical newsletters to send out to prospective and current donors

Tips:

• Follow accessibility best practices for physical and digital materials, including the use of high-contrast colors, captions for videos, and alt text for digital images.
• Save your team time and avoid embarrassing blunders like typos using a purpose-built generative AI tool for nonprofits for content creation.
• Include patient testimonials and stories wherever possible. Be sure to obtain written authorization from patients before sharing their stories or details that fall under the umbrella of protected health information (PHI).

Step 4: Manage your prospects and steward new donors

Once you have validated screening results and generated donor profiles, pass them on to fundraisers or gift officers. Ensure follow-up occurs within three months of the patient’s last visit. This could involve an in-person visit from the representative or a board member, one or more phone calls, a three-part email series, or a series of social media ads. 

Whichever communication channels you choose, first connect with the patient. Then start to raise awareness of how philanthropy changes lives in your organization before eventually working up to an ask (whether that be inviting the patient to volunteer, attend an event, or donate).

When the fundraiser gets a win, build a good-news story around it. Steward new donors by inviting them to volunteer with the organization and join the culture of philanthropy. Your grateful patient just became a one-time donor. Now it’s time to develop a lifelong donor relationship with them.

Tip: Wait 12 weeks after a first-time donor’s initial gift before making a second ask.

After identifying the right supporters for your hospital, you’ll then want to stay organized to guarantee you’re on target to meet your goals. 

• Track proposals in a donor database: Create a proposal for each prospect and assign them a gift officer. Each proposal should include the ask amount, the anticipated gift date, and the fund or purpose of the gift. Proposals should be updated throughout each stage of solicitation, reach, qualification, cultivation, solicitation, and stewardship. All of the information in your grateful patient donor CRM must comply with patient privacy laws and be kept secure.
• File contact reports: All correspondence and interactions with prospects should be reported to your donor database. Development officers will handle the reporting of these contacts.
• Conduct frequent prospect management meetings: Front-line fundraisers and the advancement services staff should be meeting to ensure prospects are moving through the solicitation pipeline. In these meetings, gift officers should report the need for further research, and prospect researchers can present new prospects to guarantee your hospital continues to grow.

Grateful patient fundraising best practices

Keep the following best practices in mind when planning and implementing a grateful patient program.

Put patient care first

Keep in mind at all times that the patient experience is your healthcare organization’s number one priority. We know you’re eager to grow your hospital’s programs and start fundraising for your organization’s future. However, don’t lose sight of the here and now. 

Always prioritize your patients as regular people in need and put their well-being and healthcare first. A great bedside manner is something patients will later remember about your hospital and their time there—a factor that may sway their inclination to donate down the line.

Cultivate goodwill with patients’ family members

Cultivate positive relationships with patients’ family members throughout the entire journey from admission through treatment and discharge. Prospects’ parents, spouses, or children may form a strong opinion of the care received and either support or discourage the patient’s decision to donate. Immediate family members who are happy with the care provided may also become donors themselves.

Maintain patient privacy

We have already said this but we’ll say it again: Respect patients’ privacy in all communications and the handling of patient data. This is paramount for ethical and successful fundraising. You may not “filter, target, use, or disclose” the following protected health information (PHI) for fundraising without a patient’s consent:

• Diagnosis
• Nature of service
• Treatment 

Since 2013, fundraisers can use certain types of PHI without the patient’s written authorization (page 2). However, the patient must be given a Notice of Privacy Practices upon admission to the hospital and be given the option to opt out of fundraising communications if they wish.

Take the cue from patients’ expressed interest

Successful grateful patient programs respond to prospects’ expressed desire to show their gratitude with a gift—giving “best-fit” donors the opportunity to align their existing philanthropic efforts with your facility’s mission. Allow grateful patients to direct their support to a specific wing, program, or staff member; this will often be the staff member or program from which they benefitted personally.

Cultivate strong physician relationships

Randall Hallett, CEO and founder of Hallett Philanthropy, outlines three essential pillars for success with grateful patient programs: WHO, WHEN, and WHAT. Each plays a critical role in fostering long-term donor relationships.

One of the most significant factors in the success of a grateful patient program (Hallett prefers “grateful patient and family program”) is the involvement of the physician (the “who”). Patients trust their healthcare providers deeply, and a referral from a physician is the most effective way to introduce them to the fundraising team. 

Hallett encourages physicians to view the fundraising team as another referral—like ordering an MRI or blood test—but one centered on gratitude. It’s equally important for them to understand that fundraisers share their commitment to patient well-being, fostering genuine relationships rather than pressuring patients to give. To keep physicians engaged, their involvement should be simple and unobtrusive, requiring minimal time commitment.

Timing is everything

Timing (the “when”) is critical to successful grateful patient and family outreach efforts. Research by the Advisory Board shows that the most effective outreach occurs within 30 days following a life-changing medical event, such as surgery, cancer treatment, or a significant recovery. 

Reaching out too soon—such as in the hospital room—may overwhelm patients, while waiting too long can diminish enthusiasm for engaging in a conversation or giving. If contact isn’t made within 60 days, the chances of engagement drop dramatically. Consider 90 days an absolute maximum. This window ensures that patients’ gratitude is still fresh, while also giving them enough time to recover physically and emotionally.

Focus on major gifts

The fundraising focus of any successful grateful patient program should be on major gifts (the “what”), which account for the vast majority of funds raised, says Hallett. Citing the book The Generosity Crisis, he notes that fewer than 47% of U.S. households donate to any nonprofit (down from 66% in 2000), making it essential to cultivate deep relationships with high-impact donors. While broad-based giving options (digital, email, mail, etc.) should be available, the greatest ROI comes from major gifts, which contribute to long-term fundraising sustainability.

Take a personalized approach

Not all grateful patients or their family members will be ready to give immediately. For some, the idea of giving may feel overwhelming or premature. Others may lack the financial capacity to contribute. In these cases, healthcare organizations should focus on education and advocacy rather than immediate giving.

For example, inviting patients to share their stories as part of an annual giving campaign or asking them to provide testimonials to inspire others can be a valuable first step. This approach allows grateful patients to contribute to the hospital’s mission in a way that feels comfortable, while also building a foundation for potential future support.

Build lasting relationships and transform healthcare

Grateful patient programs provide a powerful opportunity for healthcare fundraisers to build meaningful, long-term relationships with patients and their families. It’s essential to plan and prepare carefully, start small, ensure full compliance with patient security and privacy guidelines, and adjust to feedback as you go. Following these best practices will ensure the program strengthens relationships with patients and internal stakeholders and the effectiveness of care overall.

By screening and approaching patients strategically and nurturing relationships before making financial requests, grateful patients and their families can potentially turn into lifelong supporters. As the landscape of healthcare philanthropy evolves, a personalized, data-driven approach that respects and aligns with patients’ journeys will be vital in deepening these connections and maximizing their impact.

Contributor:
Bre Alexander

Special contributions by:
Scott Nelson

Further reading:

How ascend’s CRM supports Grateful Patient Programs

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While the concept might seem straightforward, launching and sustaining a successful GPP is a sophisticated endeavor that demands strategic precision. Hospitals must carefully navigate a complex terrain of ethical considerations, stringent data privacy regulations like HIPAA, and the delicate art of donor relationship management. This requires creating a seamless, respectful collaboration between fundraising teams and clinical staff—a balance that ensures patient privacy, maintains professional boundaries, and cultivates genuine, meaningful connections. This is where Kindsight comes in.

First, a brief history of grateful patient programs

Grateful patient fundraising has its roots in the early 20th century when hospitals began formalizing philanthropy efforts to sustain operations and expand medical research. However, it wasn’t until the mid-to-late 1900s that healthcare fundraising became more structured, with hospitals creating dedicated foundations to engage former patients as donors.

By the 1990s and early 2000s, institutions began leveraging data analytics and donor segmentation techniques, allowing them to refine their outreach and cultivate deeper relationships with patients who had a strong connection to their care experience.

Today, GPPs have evolved significantly, incorporating AI, predictive analytics, and automated workflows to identify potential donors more effectively and personalize engagement. Hospitals that have implemented digital grateful patient programs have seen notable financial benefits; for example, 72% of such institutions reported revenue increases over a recent 6 to 9-month period, compared to 36% of hospitals without these programs. Yet, as technology advances, hospitals must continue to balance innovation with ethical fundraising practices—a challenge that remains central to successful GPPs.​

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The power of AI & data in grateful patient fundraising

In the past, identifying prospective donors relied heavily on manual processes, physician referrals, and anecdotal insights. Today, AI and predictive analytics are transforming how hospitals pinpoint potential donors.

AI-powered insights help fundraising teams:

• Analyze patient engagement patterns and philanthropic behavior: By examining data such as engagement history, communication preferences, and publicly available insights, AI algorithms can predict which individuals or groups are more inclined to support healthcare initiatives. 
• Use predictive modeling to identify high-propensity donors: By analyzing past donation patterns and considering various factors, AI allows healthcare fundraisers to forecast future trends and identify potential donors who are likely to contribute significantly. 
• Automate donor segmentation to personalize outreach and increase engagement rates: Predictive AI can help organizations see how donors have responded to various outreach and fundraising appeals in the past, enabling them to build on successful strategies and improve upon or eliminate less effective ones.

By leveraging these tools, hospitals can reduce manual workloads, improve efficiency, and ensure they are reaching the right donors at the right time.

Balancing ethics & engagement in healthcare fundraising

A major challenge of GPPs is navigating the fine line between engagement and patient privacy. Unlike traditional fundraising, hospitals must comply with HIPAA regulations to ensure patient data is handled securely and ethically.

Key best practices include:

• Strict access controls: Limiting donor data access to designated fundraising staff.
• Transparency & consent: Educating patients on how their information may be used for fundraising.
• Respecting patient boundaries: Ensuring fundraising efforts enhance patient relationships rather than disrupt them.

By prioritizing ethics and compliance, hospitals can build long-term donor trust while adhering to privacy laws.

Managing referrals, physician alignment, and donor stewardship

Physicians are pivotal to grateful patient fundraising, yet many remain hesitant to engage in philanthropic conversations. The critical challenge lies in developing structured referral programs that enable clinicians to participate naturally while maintaining ethical integrity.

Effective strategies include:

• Comprehensive physician training on donor recognition: Cultivating a sophisticated approach that helps clinicians identify and sensitively respond to gratitude cues. By thoughtfully preparing physicians to recognize philanthropic potential, organizations can create meaningful connections that extend far beyond immediate financial contributions.  
• Advanced physician engagement tracking: Leveraging data-driven insights to develop nuanced communication strategies that transform patient gratitude into sustainable philanthropic relationships. This approach allows for carefully curated donor journeys that respect patient experiences while opening pathways for meaningful support. 
• Automated workflow optimization: Implementing intelligent automation to streamline referral management, reduce administrative overhead, and ensure precise, timely donor follow-ups. By integrating AI-powered tools, hospitals can create more efficient and responsive philanthropic engagement processes.  

Organizations that excel in physician-fundraiser alignment consistently achieve substantially higher donor engagement and long-term philanthropic success.

Success stories: The measurable impact of grateful patient programs

Hospitals that embrace structured GPPs see real results, including:

• Higher donor conversion rates: AI-driven segmentation leads to more targeted outreach and increased giving.
• Stronger long-term relationships: Stewardship strategies that prioritize patient engagement foster lifelong donors.
• More efficient fundraising operations: Automated workflows reduce administrative burdens and streamline donation management.

Kindsight’s Grateful Patient module: Revolutionizing healthcare fundraising

Designed specifically for healthcare philanthropy, Kindsight’s Grateful Patient module provides a comprehensive solution for maximizing donor engagement while ensuring absolute HIPAA compliance:

• Rigorous HIPAA-compliant data management: Advanced security protocols for patient data segmentation and role-based access control.
• Predictive donor identification: Cutting-edge AI analytics that precisely identify high-potential donor prospects.
• Seamless physician collaboration: Intelligent referral tracking, automated follow-up mechanisms, and enhanced interdepartmental communication tools.
• Salesforce-powered infrastructure: Ensuring scalable, flexible, and interoperable solutions that integrate seamlessly with existing hospital systems.

Kindsight empowers hospitals to implement grateful patient programs that are not just secure and ethical, but extraordinarily effective.

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An endowment is only as good as the policies, strategies, and teams that oversee it, however. As an investment-based asset, endowments require thoughtful monitoring and management. 

This guide provides an overview of endowment management, its key components, and best practices for institutions looking to maximize their financial resources.

Endowment management: An overview

An endowment is a financial asset, usually gained in the form of a donation, that is invested to generate ongoing income for an institution. In most cases, the principal amount of the endowment is preserved within the fund, while some or all of the earnings are withdrawn annually to fund institutional initiatives.

Unlike an outright donation, an endowment is a dynamic asset. Endowments must be continually monitored and managed to ensure that the funds are invested and used effectively. Endowment management, therefore, includes all activities related to the establishment, investment, and use of an endowment fund. 

Effective endowment management involves creating and implementing policies to guide investment decisions, risk management, governance policies, and compliance with donor restrictions. A good endowment strategy also incorporates regular performance monitoring, thoughtful spending policies, and transparent reporting to stakeholders.

What is meant by an endowment fund?

An endowment fund is the total pool of money (both principal and revenue) that has been set aside and invested in order to generate revenue for an institution’s ongoing activities. These funds are strategically invested in a mixed portfolio that balances risk and return to ensure consistent growth.

Endowments are often planned gifts.

Our Planned Giving Cheat Sheet delivers key insights, donor benefits, and actionable steps to identify top planned giving prospects. 

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How are endowment funds used?

Endowment funds can be used for any purpose as directed by the donor and agreed upon by the organization. Endowments are often established to support ongoing programs, including:

• Scholarships and Financial Aid: Higher education institutions often use the revenue from endowment funds to provide annual scholarships to students.
• Faculty and Research Support: Endowment funds can be used to pay for research initiatives and faculty salaries at a college or university. An endowed chair, for example, is a faculty position paid for by an endowment.
• Infrastructure and Facilities: The investment revenue from an endowment can help to pay for the long-term physical needs of the institution, including maintaining and expanding campuses, hospitals, or nonprofit facilities.
• Community Programs: Endowments often provide ongoing income to outreach initiatives and charitable activities, ensuring that these programs are sustainable and well-funded over the long term.

What is an example of an endowment fund?

Perhaps the most famous example of an endowment fund is found at Harvard University. Harvard’s endowment is the largest in higher education, valued at more than $53 billion USD in FY2024.

The Harvard endowment has been built over a period of 385 years, starting shortly after the university’s founding in 1636. It is made up of more than 14,000 separate funds, all of which are earmarked to fund the university’s education and research initiatives.

The Harvard endowment supports faculty, students, scientific research, and other academic initiatives. In FY2024 alone, the fund contributed to more than $749 million in scholarships and financial aid for Harvard students.

Types of endowments

Endowments can be categorized into four unique types. Each type of endowment comes with its own restrictions for management and use:

• Restricted Endowment
• Unrestricted Endowment
• Term Endowment
• Quasi-Endowment

Restricted endowment

A restricted endowment is similar to a traditional restricted gift in that the donor determines how the funds can be used. In most cases, the principal of a restricted endowment (the original gift amount) remains permanently untouched in the endowment fund. The investment income can be used as it becomes available, but only as designated by the donor in their original gift agreement.

Unrestricted endowment

With an unrestricted endowment, the funds can be used at the discretion of the institution for any purpose that aligns with its mission. Depending on how the endowment is structured, the organization might only be allowed to utilize the investment revenue, or they may be able to dip into a portion of the principal on occasion.

Term endowment

A term endowment establishes a temporary or semi-temporary endowment fund. The typical term endowment structure allows the institution to access and utilize the principal and/or interest balance once a set of donor-designated terms have been met. Those terms may call for a particular passage of time or a specific event to occur.

Quasi-endowment

In a quasi-endowment, a set amount of funds are generally treated like an endowment, but are not intended to stay in a long-term or permanent endowment fund. The use of quasi-endowment funds, including how and when to release the principal balance, is directed by the institution’s board of trustees. This makes a quasi-endowment the most flexible option of the four. However, it does not contribute to the long-term sustainability of the institution in the same way as the other three endowment types.

The role of the investment committee

The investment committee plays a crucial role in endowment management. They decide on the institution’s investment goals and asset allocation while monitoring performance and ensuring compliance with both legal and ethical requirements. This includes following the Uniform Prudent Management of Institutional Funds Act (UPMIFA), which oversees the investment and use of institutional funding. The committee may also hire external fund managers to assist in the oversight of endowment investments.

As with any investment, risk and reward are closely correlated when it comes to endowments. A key role of the investment committee is to define the institution’s risk tolerance and return expectations, and then use those definitions to invest the funds accordingly. This includes balancing long-term sustainability with short-term financial needs.

It is common to invest endowment funds into diversified portfolios to generate steady returns while minimizing risk. Endowments often utilize a wide range of investment vehicles, including stocks, bonds, real estate, and alternative assets. These investments should be monitored closely with adjustments made as needed to achieve the defined goals.

How to create an endowment spending policy

The money invested in an endowment isn’t just set aside for the future; it’s a living fund to support your institution’s ongoing needs. A robust endowment spending policy ensures that funds are spent consistently and efficiently—and in accordance with donor wishes—while also preserving the principal for future generations.

Three key items to consider when creating an endowment spending policy for your institution include:

• Setting a spending rate
• Balancing growth and stability
• Defining eligible expenses

Spending rate

Institutions must balance mission-focused use of endowment growth funds and smart investment and growth strategies. The more the endowment grows, either through new investments or investment revenue, the more money it can theoretically produce. A spending rate of 4%-5% of the endowment’s market value is common.

Growth & stability

Endowments depend on a system of investments, which don’t always perform as expected. Endowment managers must consider and account for adjustments necessary for inflation and market fluctuations, ensuring that the overall value of the fund increases over time.

Eligible expenses

Whether determined by the donor, the board, or the organization at large, it’s critical to outline the purposes for which endowment funds can be used. Some endowments may be more flexible than others, but endowments, in general, are typically intended for programmatic or mission-driven activities—in short, more impactful expenses than ensuring that the supply room has enough staples.

Spotlight on higher education endowments

Higher education institutions rely heavily on endowments to support their academic and operational needs over the long term. A well-managed higher education endowment provides stability to the institution, enabling universities to weather economic uncertainties—which often impact both enrollment revenue and fundraising—while supporting valuable education and research initiatives. 

Endowments in higher education may be used for any purpose, depending on the donor’s wishes and the type of endowment established. They are most often utilized to fund:

• Professorships and faculty chairs
• Student scholarships and fellowships
• Campus improvements and infrastructure projects
• Special research initiatives

Increasing the endowment through additional donations is a priority for many colleges and universities. Endowment fund donors have the benefit of knowing that their one-time gift supports the institution for a long time.

While Harvard University boasts the largest university endowment in the United States, endowment funds can be found at colleges and universities of all sizes. University endowments are utilized by both private and public institutions ranging from large state schools to small liberal arts colleges. Depending on the structure of the university and its fundraising arm, university endowments may be directly managed by the institution, by an associated foundation, or by another entity as designated by the institution. 

Managing an endowment at your institution

The establishment and management of an endowment is essential for the long-term financial health of higher education institutions, healthcare organizations, and large nonprofits. By understanding the types of endowments, establishing a strong spending policy, and leveraging investment expertise, your institution can ensure their financial sustainability while fulfilling your mission. An effective endowment management plan provides lasting benefits, empowering your institution to support future generations through strategic financial planning and stewardship.

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