Philanthropy Leadership Council Your Essential Role in Fundraising

Philanthropy Leadership Council Your Essential Role in Fundraising Campaigns Leveraging CXO Perspective and Influence to Achieve Ambitious Goals

2 Campaigns: Not Business As Usual Intensity, Stakes Are Higher for Campaigns Than Day-to-Day Fundraising Three Ways Campaigns Differ from Typical Fundraising Operations Compressed Timeline Tight Focus on Major Gifts Big-Ticket Priorities Campaigns compress fundraising activity into a narrow window to generate higher-than-average revenue. Campaigns demand increased attention to highcapacity donors to achieve fundraising expectations. Campaigns support major hospital/health system needs that can’t be funded solely through operations or debt. © 2017 Advisory Board • All Rights Reserved • advisory. com Source: Philanthropy Leadership Council interviews and analysis.

3 Campaigns Critical to Reaching Ambitious Targets Go-To Fundraising Strategy for Strategic Needs, Big Goals Raised $1 billion for cancer research Raised $19 million for NICU expansion Raised $87 million for children’s hospital Followed successful $100 million campaign with another $100 million campaign Raised $8 million for cardiac center Raised $92 million for health system © 2017 Advisory Board • All Rights Reserved • advisory. com Source: Philanthropy Leadership Council interviews and analysis.

4 Victims of Our Own Success Focused, Single-Priority Efforts Give Way to Sprawling Endeavors Previous Campaign Mandate Philanthropy tasked to raise money for specific, tangible objectives: • Endowed staff • Facilities • Technology Today’s Campaign Mandate System Strategic Plan Institution-Wide Physician Wish List Marketing Tagline Philanthropy tasked to support fiveyear system strategic plan Campaign started with hundreds of physician priorities Launched a campaign to raise “$75 million for 75 th anniversary” ! 68% © 2017 Advisory Board • All Rights Reserved • advisory. com of development leaders report that their greatest challenge in campaigns is establishing, vetting, sourcing or communicating campaign priorities Source: Sharp Health. Care, San Diego, CA; UNC Health Care, Chapel Hill, NC; Ochsner Health, New Orleans, LA: Philanthropy Leadership Council interviews and analysis.

5 CXOs’ Most Valuable Campaign Roles 1 Identifying strategic priorities 2 Engaging with prospects and donors 3 Enfranchising peers and direct reports © 2017 Advisory Board • All Rights Reserved • advisory. com CXOs have unique perspective, insight, and data into individual initiatives and across health system. CXOs have significant credibility with donors and prospects as representatives of the hospital/health system. CXOs are influential models for engagement with philanthropy across the organization. Source: Philanthropy Leadership Council interviews and analysis.

6 Identifying Strategic Priorities Facilitating the Intersection of Priorities Philanthropy’s Role in Health Care Organizations Four Ways CXOs Can Help Hospital and Health System Priorities Donor Interests Foundation/Development Office Purview © 2017 Advisory Board • All Rights Reserved • advisory. com 1. Include development in planning discussions/meeting 2. Help translate and prioritize strategic needs for donor audiences 3. Facilitate access to internal stakeholders and data to identify impact opportunities and track them 4. Make the call and deliver message to stakeholders on what is funded by or included in campaign Source: Philanthropy Leadership Council interviews and analysis.

7 Partner with Development to Identify Top Priorities Elevate Impact of Gift Proposals with System-Wide Effects Foundation Collaborates with CEO to Identify “Broad Impact” Opportunity for Big Ask Cross-Cutting System Vision Cross-Continuum Palliative Care System-wide Behavioral Health Program Learning, Innovation, and Simulation Center Expand palliative care treatment to larger portion of patient population Expand behavioral health resources through internal investment and strategic community partnerships Expand VMMC’s capacity for patientstaff collaboration to enhance quality, safety, and patient experience Develop staff, expand access via telehealth and specialty care, and perfect care experience across the system Consolidate education, lab, and simulation facilities and technology to focus on innovation broadly Establish comprehensive program that is accessible Program to all patients with a Enhancements serious illness who receive care © 2017 Advisory Board • All Rights Reserved • advisory. com Source: Virginia Mason Medical Center, Seattle, WA: Philanthropy Leadership Council interviews and analysis.

8 Provide Institutional Perspective on Priorities CXOs Help Test Balance of Institutional Need and Philanthropic Potential Hickory Medical Center Foundation Checklist 1 1. Vision leading to improved health 2. Strong science linked to clinical presence Institutional Insight Required How does this priority align with institutional vision and need? 3. Strong departmental leader Who can provide even more insight or champion this priority? 4. Current donor base and advocate interest Philanthropy Insight Required 5. Potential lead gift donor for 40% to 80% of goal 6. Philanthropic excitement and potential Known donors, including enthusiastic high-capacity donor Sufficient interest to appeal to new prospects in the absence of known donors 1) Pseudonym. © 2017 Advisory Board • All Rights Reserved • advisory. com Source: Philanthropy Leadership Council interviews and analysis.

9 Engaging with Prospects and Donors Executive Interaction with Top Donors Essential CEO Has Outsized Influence, But Limited Bandwidth Person with Greatest Influence on Top Donors’ Attachment to Hospital Individuals Present at Solicitation of Hospitals’ Top Gifts n=147 n=96 Other Board Member / Donor / Volunteer 53% 10% 9% CEO 30% 24% 25% Development Professional 13% 8% 26% Physician © 2017 Advisory Board • All Rights Reserved • advisory. com 20% CEO Board Other CXO Physician member / who did not Donor / provided provide Volunteer care Source: Philanthropy Leadership Council Survey of Hospitals’ Largest Gifts.

10 How CXOs Advance Relationships Meaningful Interactions Deepen Engagement Four Common Venues to Leverage Executive Credibility and Influence Individual Meetings Executive Briefings • Personal interaction with high- • Breakfast meeting hosted by CXOs capacity prospect • Discussion of specific funding opportunities and their strategic importance for select prospects • Discussion of hospital priorities, strategies, and special events Hospital Tours Panel Discussion • Volunteers and prospects • Donors and prospects attend tour hospital • Tour new technologies, renovations; witness live procedures © 2017 Advisory Board • All Rights Reserved • advisory. com panel discussion • CXOs and physicians present on new programs or research Source: Philanthropy Leadership Council interviews and analysis.

11 Enfranchising Peers and Direct Reports Engagement Scales and Cascades Impact C-Level Surrogates Can Act as Both Agents and Models for Philanthropy Multiplier Effect on Internal Philanthropy Engagement CEO CXO CXO VP VP VP VP Clinicians © 2017 Advisory Board • All Rights Reserved • advisory. com Faculty Staff Source: Philanthropy Leadership Council interviews and analysis.

12 Promote a Culture of Philanthropy Make Philanthropy Participation an Organizational Priority Impact on Philanthropy Performance Executives’ Opportunities to Elevate Philanthropy Across Organization Set Philanthropy Incorporate metrics for engagement with Goals for philanthropy in Executives/Teams performance review Add Standing Dedicate recurring meeting Philanthropy Line Item time for philanthropy-related to Executive Agenda concerns and opportunities Create Space for CDO to Address System Leaders Provide opportunity for development leaders to address questions about campaign from health system management and physician leaders Degree of Executive Engagement with Philanthropy © 2017 Advisory Board • All Rights Reserved • advisory. com Source: Philanthropy Leadership Council interviews and analysis.

13 Leverage Your Influence Through Action Questions to Ask Yourself 1 Identifying strategic priorities 2 Engaging with prospects and donors 3 Enfranchising peers and direct reports © 2017 Advisory Board • All Rights Reserved • advisory. com What data or intelligence does the philanthropy team need from me or my department on specific campaign priorities? Are donors or prospects interested in specific opportunities on which I can lend credibility or provide information? Do you need help making connections with my peers or direct reports? Source: Philanthropy Leadership Council interviews and analysis.

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