City of Hope has shifted from grassroots fundraising to a model that focuses on large, transformative donations, according to CEO Robert Stone.

In September, City of Hope received a $150 million donation for pancreatic cancer treatment from entrepreneur and philanthropist Emmet Stephenson Jr. and his daughter, Tessa Stephenson, who lost a family member to pancreatic cancer. City of Hope intends to use the investment for a fellowship program, a research symposium, immunotherapy treatments, and a pancreatic biorepository, Kacik reports. The donation also includes an annual $1 million prize for the researcher that makes the largest impact on pancreatic cancer research, regardless of whether they're associated with City of Hope.

Similarly, Henry Ford Health has looked to additional philanthropic support for its expansion plans, according to Mary Jane Vogt, chief development officer at Henry Ford.

"We have some audacious goals in building a new hospital in Detroit, a new bed tower in Macomb and a new research building. We cannot do this with the margins we currently have," Vogt said. "When we are in a large campaign such as this, we need to share this vision with dedicated donors, who have stepped up in a meaningful way."

Henry Ford aims to raise $750 million by 2028, Kacik reports. It has teamed up with Michigan State University and Detroit Pistons owner Tom Gores to expand Henry Ford hospitals, build a medical research center, develop housing, and build stores and public spaces around its main campus.

The project will cost approximately $3 billion, $2 billion of which will be funded by Henry Ford, and comes in addition to the health system's estimated $2 billion integration plan coming from its Ascension Michigan venture where Henry Ford took over eight Ascension hospitals.

Since its fundraising campaign started in 2021, Henry Ford has raised $510 million and, according to Vogt, is on track to exceed its target. Vogt noted part of the total includes a $36 million donation from an anonymous philanthropist for the Henry Ford Pancreatic Cancer Center.

A number of other health systems have also received big donations. Cleveland Clinic last month received $30 million from Cleveland Browns owners Jimmy and Dee Haslam to expand cardiovascular genetics research. Part of the funding Cleveland Clinic received will be used to provide genetic testing for family members of patients at Cleveland Clinic diagnosed with inherited heart conditions.

"Our operating budget is faced with increasing costs of labor, supplies and pharmaceuticals," said Lara Kalafatis, chair of Cleveland Clinic's Philanthropy Institute. "Philanthropy is more important than ever as a catalyst for new ideas, innovations and capital."

Phoenix Children's Foundation has also received some large donations, raising around $25 million this year in unrestricted funding through its Hope Fund, up from around $15 million in 2018, according to Steve Schnall, chief development officer for Phoenix Children's.

"The health system has an insatiable appetite for philanthropy because of our growth focus, and in a market like ours, we need to add more sites, beds and providers to meet the growing demand," he said.

Some other parts of philanthropy at Phoenix Children's are also growing, and the foundation has doubled its prior fundraising goal to $500 million, which Schnall says the foundation is on track to hit in 2028. Large donations for congenital heart disease treatment and research, a new hospital in Glendale, Arizona, and mental health services have helped propel the campaign, Schnall added.

Meanwhile, Memorial Hermann Foundation has raised $52 million in its most recent fiscal year ending in June, which is up around 200% from the previous year, according to Anne Neeson, CEO of the Memorial Hermann Foundation, which is the foundation arm of Memorial Hermann Health System.

One topic that has resonated with philanthropists has been increasing the pipeline of nurses, Neeson said. In August, Memorial Hermann partnered with the Aldine Independent School District to welcome its first class in the Health Education and Learning High School in Houston, which was funded by a $31 million grant from Bloomberg Philanthropies. The program provides high school students with courses on nursing, imaging, physical therapy, healthcare administration, and more.

"In Texas, we will be short roughly 30,000 nurses over the next few years," Neeson said. "The [Health Education and Learning High School] gives them an opportunity to start working in healthcare right away. Donors want to know that they are making a difference."

Memorial Hermann is also fundraising for specialty care like heart and vascular treatment, as well as care provided at community and neighborhood clinics for patients without insurance, women and children's care, and trauma services, Neeson said.

Considerations for hospital leaders

In a recent survey of over 100 hospitals led by Lanahan, campaign goals ranged from $100,000 to $3.5 billion. "While nine- and ten-figure campaigns understandably command attention, hospital executives need to understand that these efforts take time, consistent resourcing, and compelling funding priorities," said Lanahan. "Many chief philanthropy officers are being asked to increase their campaign goal to address their hospital's financial pressures, but they aren't always being offered the kinds of projects that inspire transformational giving."

Many development leaders say it's challenging to establish donor-ready strategic campaign priorities.

"There's often a push-pull when it comes to hospital philanthropy," said Lanahan. "We're hearing more development leaders being asked to raise funds with as few restrictions as possible. But the largest gifts to hospitals stem from visionary partnerships with invested community members, including grateful families and board members. Philanthropy leaders are uniquely positioned to marry donor interest to institutional needs. Hospital executives can unlock significant philanthropic revenue by partnering with development leadership earlier in the planning process."

Consistent staffing is also required to support philanthropic success, especially given the prevalence of campaigns.

"Hospitals that cut back their development teams, even temporarily, put themselves at a significant disadvantage in their market. Competition for experienced fundraisers is at an all-time high, and it can take 24 months for even the most talented development officer to build productive donor relationships. So, although hospitals may include philanthropy staff in administrative reductions during periods of financial stress, doing so will likely have long-lasting revenue implications," cautioned Lanahan.