Fund and Friend Raising after the Pandemic: Is Your Healthcare Organization Poised for Action?

By Howard L Smith, PhD, Professor, Milgard School of Business, University of Washington Tacoma Sally E. Deck, PhC, Doctoral Candidate, School of Leadership Studies, Gonzaga University

Thanks to the Covid-19 pandemic, healthcare organizations have adjusted their fundraising efforts to align with a strange world of the new normal. Advancement teams turned to virtual fund- and friend-raising strategies as means to make progress toward their philanthropic goals. From this perspective, Covid-19 has helped to nurture widespread innovation in prospect and donor cultivation. Skeptical healthcare executives, clinicians, and ancillary staff might question the assertion that anything good could arise from this contagion. But, inarguably, Covid-19 has stimulated new discoveries for imaginatively reaching advancement goals. Before becoming over-confident about meeting the virtual reality challenges driven by the ever-evolving pandemic, it is appropriate to ask a pertinent question: Is your healthcare organization poised for action in the postpandemic future? The purpose of this paper is to guide development executives and healthcare leaders toward an affirmative answer.

This question should send a little shiver down the spine of development officers or advancement executives worth their salt. Pandemic-induced ambiguity is likely to haunt healthcare philanthropy long after herd immunity is reached. Thus, savvy advancement

leaders should finish planning now in order to implement the next phase of ingenious strategies and tactics. Healthcare organizations should be on the very cusp of rolling out their creative plans befitting a post-pandemic environment. Those who are just beginning to contemplate the possibilities of a post-pandemic phase have every reason to pick up the pace.

The virus has essentially forced healthcare organizations to innovate because Covid-19 overturns traditional thinking about delivering health and medical services. Its impact on philanthropy and fundraising is startling and often game changing. Innovation enables traditional fundraising strategies to continue, albeit with tactics vastly changed over preCovid-19 times. And therein is an illuminating observation for hospitals, clinics, medical groups, and associated healthcare organizations. Fundraising changes usually begin as a conscientious effort to fine-tune an existing strategy. However, altogether more creative practices are essential in responding to Covid19’s impact.

Early Stage Responses to the Pandemic

As far as healthcare philanthropy is concerned… things typically slowed down as development officers and executive teams contemplated the best path forward. This semi-pause led to many circular discussions regarding why an over-abundance of caution should be used in revising fundraising practices. Retrospectively, this appears to be little more than stalling with hopeful waiting; that is, the Covid-19 outbreak would be quickly resolved, and traditional fundraising programs could resume as the pandemic eased.

As weeks added up with the pandemic roaring in growth, it became increasingly difficult for healthcare organizations to square inaction in altering traditional programs with the need to reinvent them. In unique cases, leadership teams made an exponential leap by envisioning an entirely new approach to fundraising. The pandemic was not going to disappear overnight. This perspective encouraged advancement teams to think out of the box. Freed from the status quo, novel ideas gained voice and support.

In effect, Covid-19 gave healthcare organizations latitude to be more aggressive in rebuilding what had been effective, often elegant, and timeproven methods to raise resources. Traditional models were temporarily sidelined as virtual models gained traction. For some organizations, after talking for years about instilling a refreshed fundraising model, the pandemic prompted them to move from intention to action.

At this point, there may be a growing unease among advancement directors that catchy virtual pathways have run their course. Which raises the question of: “What next?”. On-line auctions, imitated wine tasting events, simulated dinners, exclusive invitations to small-scale soirees, entertaining speakers for guerrilla popup solicitations, mini-sessions with renowned expert presenters, Zoom sessions for high tea or happy hour, and similar inspired brainstorms have played out on our computer screens. Nonetheless, there remains some serious questioning about how deep and long-lasting these clever virtual reality tactics can run.

Apathy seems rampant regarding the prospect of yet another Zoom session. And, how sincerely connected are people who are drawn to our digital web? This is a disturbing question that other fields, such as education, are openly exploring. How much have our children and young adults gained through distance education, and how depreciated is their learning? Tales from parents of finding their child mindlessly playing computer games while miming attention to their teachers is a common phenomenon. No wonder society is so concerned about a return to face-to-

face instruction where both scholarship and socialization benefit. And therein is the rub for philanthropy. Are these facsimile tactics actually paying off for the short and the long run?

We may be fooling ourselves because we have essentially applied a bandage to address a gaping wound that needs stitches, if not surgery. Accordingly, an alarming surprise may be encountered in the coming months. Weary of the computer screen that seldom elicits warm and fuzzy feelings as well as semi-detached from the meaningful relations they have enjoyed with passionate advancement team members, donors are susceptible to slowly drifting away. If you cannot work your magic in person and speak to the explicit specific connection that any single donor seeks, chances are growing that giving will decrease. An intensely genuine relationship is a, if not the, fundamental causal factor underlying generous giving. That sort of connection is very difficult to reach when you are relying on digital technology to embody the message.

Post-Pandemic Strategizing

Accepting that our donors are growing weary of digital dunning, it makes sense to focus on creating the next generation of resourceraising strategies. Two caveats are important to consider before examining viable options for post-pandemic strategizing. First, it would be a serious mistake to trivialize the advances healthcare organizations have made in recreating fund- and friend-raising strategies during the pandemic. Some very powerful new methodologies have surfaced this past yearplus. Just because the pandemic may go away does not mean that these advances should be put back on the shelf. Each ingenious idea represents yet another proverbial tactical arrow in the strategy quiver from which fundraising teams can draw and use accordingly to their circumstances. Second, the Covid-19 virus and its mounting variations will presumably continue to diminish as vaccines, and prudent health behaviors have effect. Nonetheless, it is the human behavior side that raises the risk that the virus will be perpetuated. Let us proceed while assuming that eventually, the virus will be controlled.

Create a Culture where Imagination Proliferates

It is difficult to draw deeply from the well of creativity when imaginative suggestions, ideas, and hunches do not receive a favorable welcome. Lead as though every single person on your team has the capacity to bring brilliant suggestions to the table. Communicate that they are on this journey together as colleagues. Underscore that everyone has a responsibility to look for good ideas. Enable staff to freely express their ideas by constructing venues that facilitate sharing and discourse to vet the best suggestions. Hold periodic scheduled meetings that are focused solely on articulating good ideas. Commit to the operating rule that no idea is discarded until it is completely examined and validated/invalidated or a better alternative(s) surfaces.

Innovation has been, and will always be, a fount of inspiration for addressing difficult issues in uncertain times. Thus, it is particularly apropos that imaginative thinking be elevated within advancement units. Eventually, the pandemic will succumb, and society will move forward. Hence, healthcare organizations should be planning their next specific steps and a longerrun perspective should be nurtured. Develop short, intermediate, and long-run strategies and tactics. Make them graphic and breathe life into them through visual images. Frequently revisit progress toward key goals while identifying ways to overcome obstacles to their achievement.

Now, more than ever, healthcare organizations can benefit from nurturing a culture of innovation. Donors and supporters feel distracted and constrained by the pandemic’s fallout. They may perceive that there are

more reasons not to be generous than there are reasons for giving. Imbue them with the intellectual and emotional ammunition they need to continue investing in your healthcare organization’s programs. They understood the importance of their gifts before the pandemic; help them realize that their rationale for donating has not evaporated, and if appropriate, has grown larger because of the pandemic.

Gain Insight by Looking Through a Different Lens

One lesson that the pandemic has consistently driven home is the value of looking at fundraising from a different lens. As the world went into crisis mode, development executives and fundraising staff responded accordingly by essentially pulling the plug on many of their ongoing and planned events, campaigns, and solicitations. By pausing, philanthropy leaders were trying to gauge the direction and velocity of a new context.

The pandemic carried very ominous overtones: face-to-face contact became artificial, economic turmoil blossomed, resources suddenly became unavailable, and thousands lost their jobs. Added to the mix was the reality that the everyday variety of healthcare crises— surgery, infectious disease concerns, chronic disease treatment—would not stop and delay or possibly aggravate matters for patients. A predictable response to these challenges has been to plug along while performing triage on existing strategies and tactics.

Looking backward, analyzing the present, or gazing into a crystal ball to read the future—all tended to produce the same conclusion: there has been a cataclysmic shift, and it is difficult to discern how best to react. And therein is an answer: reacting is not the correct response; forging an enlightened path forward is the goal. One of the best ways to work think through a dilemma is to apply a new, or different, lens to gain an improved perspective. Some describe this as thinking out of the box, flipping the situation, or reversing the algorithm of thinking. Regardless of what term is used, the process is powerful: think of the traditional way that you would solve a problem at hand; then completely reverse that solution to gain new insights–a new lens–on solving the problem.

A traditional advancement approach might be to recalibrate and adjust events, campaigns, and solicitations planned for the current year. Tweak the planned activities to respond to the constraints imposed by the virus. Many planned fundraising events centering on luncheons or dinners–big social events–were forced to go viral and those who followed this path reported respectable results. But as the pandemic dragged on, donors and prospects became tired of the virtual hoorah; some began drifting away.

Other fundraisers flipped the big social events. They stopped to ask about the value of large get-togethers that often do not penetrate below the surface of a minimal relationship with donors and prospects. By flipping the algorithm of thinking, these fundraisers gained important insight: the pandemic was a providential way to pursue a more genuine relationships with constituents. Minimize the excesses of the grand events and plow effort and resources into building relationships through more intimate, meaningful, and personal connections. Create small social hour events that do not take the donors away from their job (during

the afternoon) or their family (in the evening). And, since the medium is often virtual, a small number of participants ensures that no one will quietly slip into the background. When the pandemic eases, the virtual tactic can be replaced by a genuine personal connection.

Fully Connect with Professional Colleagues and Associations

Not every good idea is applicable for every healthcare organization. A fundraising strategy that may work spectacularly for an urban hospital may fall flat on its face for a rural hospital. But, if each of these hospitals does not consider the latest and greatest ideas being tried, there is little hope that they will move beyond their status quo. In searching for successful ways of cultivating prospects and building indelible donor relations, no better opportunity exists than informal and formal sharing among professional colleagues.

A plethora of professional associations and societies exist for many reasons, but none is so promising as the simple ability for participants to share what is working, and not working, in their organizations. Professional conventions and meetings provide a wellspring of creative thinking and a non-threatening marketplace of novel concepts that may be applicable to other healthcare organizations. But, if representatives of an organization eschew these gatherings, they sequester themselves from the flow of imaginative notions that might prove extremely invaluable. The Covid-19 pandemic is exactly the sort of crisis that demands originality from healthcare leaders.

Seasoned healthcare executives and leaders may look upon annual associations and conventions with a jaundiced eye. After all, they have the gravitas that renders attending these meetings as a low priority on their busy schedules. That sort of attitude is exactly what leads to stale and outdated thinking. All—each and everyone in the healthcare profession—should remain open to new thinking and the application of better ideas to their operations and organizations. No better source for inventive ideas exists than participation in professional societies.

Formulate the Next Better Practices

Most professions endorse benchmarking because there is a strong demonstrated relationship between following best practices and the ability to deliver better outcomes. Highperforming organizations, and those that aspire to reach this lofty echelon, recognize that the payoff from replicating best practices is a higher probability of actually delivering desired results. Best practices are not necessarily a panacea, but a strategy to ensure that over time an organization stretches to systematically integrate the best ideas for consistently attaining the highest levels of performance.

In healthcare philanthropy, the pandemic has challenged advancement teams to go beyond best practices by crafting, beta testing, and implementing better practices… going to another level by aspiring to enhance performance beyond the best practices. Rather than accepting the common metrics of great performance (e.g., funds raised per development officer, net gifting per event, percentage of new donors added to at various donation levels, and similar measures), the better practices philosophy sets a higher standard to guide decisions and actions. It is often the failure to think BIG enough about goals that limits their achievement. This is observed in many areas of life. Running a four-minute mile was once thought beyond the capability of a human body. Self-driving cars were a fantasy. A global internet that provides immediate access to unthinkable amounts of information was laughed at by skeptics.

With the pandemic dampening the ability of people to give generously toward causes that

matter to them, a better practice is to encourage staff members to conceive ambitious ideas that are not only challenging but also achievable. In the daily routine of operating any organization, it is easy for a malaise to surface; actions become routine, and it is natural to become hyperfocused on doing a good job. From an operations management perspective, this tendency is a good thing because it achieves greater efficiency. However, effective fundraising in ambiguous conditions cries for more than routinized action. As so many in advancement can attest, healthcare advancement units need to nurture brilliantly novel ideas that form the genesis of the next best practices. There is no better fount for these ingenious concepts than those who are working directly with prospects and donors. Look inward to discover the next generation of best practices for your organization. The end of the pandemic is in sight no matter how many weeks, months, or years it will take to reach that point. And, eventually, it too will pass. After reaching this pinnacle, having survived the adverse conditions and their attendant ugliness, diligent healthcare philanthropy teams will dust themselves off and look toward the future. These teams can bear witness to the hardships they encountered, the sacrifices made, as well as the tremendous milestones achieved in the process of keeping focused on mission. A brief look back over their shoulders will confirm the greatest lessons learned over this battle: be ready to pivot when the going gets tough, embrace innovation and experimentation, and above all, be poised for action.