The 2023 Digital Fundraising Benchmark Report for Hospitals, produced by Digital Health Strategies in partnership with the Association for Healthcare Philanthropy, is the industry’s leading digital survey. Our insights and benchmarks are drawn from survey responses and data from non-profit hospital foundations.
This year, for our third annual report, we surveyed 210 leading non-profit hospital foundations, spanning academic, specialty, and community-based systems across the country. Benchmarks were developed from data sourced from 37 hospitals and hospital systems.
The data used was validated and standardized by Digital Health Strategies and only includes revenue from email, website and direct mail solicitation campaigns. Revenue from events, major giving, planned giving or employee giving is not included.
Use this report to validate and improve your hospital’s digital fundraising strategy. Our insights are based on the experience and performance of hospitals across the country. They can help you acquire and convert more donors, generate larger gifts, retain donors longer, and identify and cultivate promising major donors.
Top 3 Fundraising Priorities for
Hospitals & Health Systems
ACQUISITION
Digital grateful patient programs are key to donor growth
86% of respondents with digital grateful patient programs saw more new donors. 93% saw larger first gifts.
55% of hospitals without a digital grateful patient program would like to add one to aid acquisition.
DONOR RETENTION & UPGRADES
Increased online communication directly leads to increased revenue
60% of hospitals that sent more emails this year than last year saw improved or stable revenue and more major gifts.
58% of hospitals that regularly sent community-based messaging with personal stories saw an increase in gifts above $1,000.
MAJOR DONOR DEVELOPMENT
Advanced data modeling can support major gift cultivation.
64% of respondents don’t perform major donor modeling or don’t know how effective their models are.
72% of respondents reported their average major gift portfolio is between 50 – 100+ prospects, underscoring the need for digital tools to support outreach.
Key Findings
ACQUISITION
Implement the tools to convert top-of-funnel prospects
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~90% of respondents with a digital grateful patient program say they’re seeing improvements in donor conversion and average gift sizes.
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As a percentage of total donors, first-time donors comprised 26% more than last year. Precise targeting and messaging can successfully reach and convert the right prospects.
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First-time online donors are converting 20% faster than donors as a whole and email provides the ability to engage prospects within 30 days of their care encounter
DONOR RETENTION & UPGRADES
Invest in online giving to improve retention and increase gift sizes
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Only 38% of respondents use targeted outreach to improve retention, and less than 1/3 are using custom retention messaging.
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46% of respondents don’t ramp up retention messaging for at least 24 months after a gift — a major missed opportunity to re-engage donors for repeat giving before they lapse.
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92% of survey respondents saw stable or improved year-over-year performance in $1,000+ giving demonstrating the opportunity to cultivate mid-level donors.
MAJOR DONOR DEVELOPMENT
Data is being underutilized to support major donor programs
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Less than 1/3 of respondents feel they are using major donor modeling effectively.
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57% of hospitals who increased their email volume this year had increases in major gifts.
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Online gifts of $10,000+ have grown by 150% since 2021, demonstrating that donors are increasingly comfortable giving large amounts online.
Hospital Foundation Digital Fundraising Benchmarks
We sourced quantitative data from 37 hospitals across the country to develop specific hospital fundraising benchmarks around donor acquisition, donor retention, and major donor development.
Annual Growth in Online Donations
Number of donations made online in 2022
Non-profit hospitals saw an annual growth in online donations of 13% in 2022.
First-time Donor Rate
Percentage of total donors who made their first gift in 2022
Non-profit hospitals saw an average acquisition rate of 39% in 2022. This is 26% higher than the first-time donor rate from the 12-month period ending December 2022 of 31%.
Average Online Donor Value
Total online revenue per donor in 2022
The average 12-month value of an online donor to a non-profit hospital was $462 ending in December 2021. This is 8% higher than the value of online donors from the 12-month period ending December 2021 who had an average value of $426.
Annual Donor Retention
Percentage of 2021 donors who gave again in 2022
Non-profit hospitals saw an average retention rate of 42%. This is a 40 increase from last year’s retention rate of 30%.
Annual Growth in Online Donors
Percent increase in Foundation revenue exclusively from online channels
Non-profit hospitals saw an increase in online donors of 11% in 2022.
Percent of New Donors from Online Channels
Percentage of donors who gave via online channels and for the first time in 2022
Non-profit hospitals saw 51% of new donors from online channels. This is a 65% increase from the percentage of new donors from online channels in 2021.
Annual Email List Growth
Increase in unique email addresses that a Foundation can solicit
Non-profit hospitals saw an increase in their email lists of 39% in 2022.
Email Click Rate
Unique email clicks divided by the number of emails sent
Non-profit hospitals saw an email click rate of 1.59% in 2022. This is a 7% decrease from the click rate reported in 2021.
Annual Growth in Online Revenue
Percent increase in Foundation revenue exclusively from online channels
Non-profit hospitals saw a 7% increase in revenue exclusively from online channels.
Average Online Donation
Online revenue per gift in 2022
The average online donation was $337 to non-profit hospitals in 2021. This is on par with the average online donation ($332) in 2021.
Full survey results
We heard from 210 non-profit hospital foundations across the United States.
Here’s what they said:
1. Over the past 12 months, the total number of emails you’ve sent per constituent has…
2. Over the past 12 months, the total number of direct mail pieces you’ve sent per constituent has…
3. Over the past 12 months, the number of events you’ve held has…
4. Over the past 12 months, your number of new donors has…
5. Over the past 12 months, your first-time gift amount has…
6. Over the past 12 months, your number of gifts over $1,000 has…
7. Over the next 12 months, what are the top three priorities for your organization?
8. In your fundraising communications, which of the below most closely aligns with how you position the role of philanthropy at your health system? (Select one)
9. Which of the following messaging tactics do you frequently use in your donor communications? (Select all that apply)
10. Which communication channels do you use to connect with donors? (Select all that apply)
11. Which fundraising campaigns do you conduct each year? (Select all that apply)
12. Approximately how many fundraising emails does an existing donor receive from your organization each year?
13. Which communications channel produces the most revenue for your organization?
14. What types of communications do you send to your donor and prospect audiences that are non-solicitation? (Select all that apply)
15. What type of testing do you perform on email campaigns? (Select all that apply)
16. What types of data models do you use for targeted communications and donor development? (Select all that apply)
17. How do you decide which prospects and donors to target as major donors? (Select all that apply)
18. Have your major donor models improved the conversion rates of your prospects?
19. How do you nurture your major donor prospects? (Select all that apply)
20. How do you manage major gift prospect communications? (Select all that apply)
21. What is your average gift officer portfolio size? (The number of donors or prospects in a gift officer’s portfolio)
22. What tactics do you use to retain a donor and prevent them from lapsing?
23. How long do you wait until you classify someone as a lapsed donor?
24. What tactics do you use to reactivate a lapsed donor? (Select all that apply)
25. Which CRM do you use to manage donor information?
26. What online donation platforms do you use?
27. What email marketing system do you use for donor communications?
28. Do you have a digital grateful patient program in place?
29. If you have a grateful patient program (digital or direct mail), where do you store your non-donor patient audiences?
30. Please rate how well you feel your marketing and fundraising technology stack is supporting your organizational goals.
Methodology and Participants
Survey Participants
This survey was sent to members of the Association for Healthcare Philanthropy. The results from that survey, compiled with data from the work of Digital Health Strategies, were used to develop this report. Survey responses from 210 participants from the United States are included in this report. These organizations span from small, community-based hospitals, to large inter-state hospital networks.
Geographic presence of survey participants
104
urban
communities serving a principal city
of a metropolitan area
68
suburban
communities serving within a metropolitan
or micropolitan area
38
rural
communities outside of a
metropolitan area
Size of survey participant hospitals
19
small
hospitals <100 beds
30
medium
hospitals 100-499 beds
22
large
hospitals 500+ beds
Benchmarking Participants
Benchmarks were developed from data sourced from 37 hospitals and hospital systems to develop specific hospital fundraising benchmarks around donor acquisition, retention, and lifetime value. The data used was validated and standardized by Digital Health Strategies and only includes revenue from e-mail, website, and direct mail solicitation campaigns. Revenue from events, major giving, planned giving or employee giving is not included. All participants are based in the United States. The participating organizations span from small, community-based hospitals, to large inter-state hospital networks.
Geographic presence of benchmarking participants
16
urban communities
serving a principal city of a metropolitan area
11
suburban communities
serving within a metropolitan or micropolitan area
10
rural communities
outside of a metropolitan area
Size of benchmarking participant hospitals
11
small
hospitals <100 beds
18
medium
hospitals 100-499 beds
8
large
hospitals 500+ beds
Get Ready for 2024
Use this checklist to support your fundraising strategy and planning.
ACQUISITION
- Implement a digital grateful patient program to build a prospect list for 2024.
- Develop a comprehensive fundraising calendar to solicit new prospects within 90 days of onboarding throughout the year.
- Blend digital and traditional fundraising communications to engage supporters based on their preferences.
DONOR RETENTION & UPGRADES
- Ask more often! Data shows that sending more email equals more money.
- Engage recent donors proactively through regular stewardship to encourage additional gifts.
- Use data to target gift amounts and reasons for giving based on prior behavior and interests. Directly connect donor support to community impact.
MAJOR DONOR DEVELOPMENT
- Use online channels to increase mid-level and giving society membership: Online gift sizes are increasing and email allows for “just-in-time” messaging to drive upgrades.
- Meet with major gift officers to create a plan for data and digital tools: Understand their needs and what insights can make their work more efficient and effective.
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