President’s Budget Would Dampen Fundraising by Nonprofit Hospitals

A proposal in President Obama’s budget to reduce tax deductions for charitable donations would thwart donations to nonprofit hospitals by wealthy donors, according to a release by the Association for Healthcare Philanthropy.

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The association said the White House proposal comes at a time when charitable donations have been down and hospitals are expected to lose enhanced federal subsidies for state Medicaid programs.

“This is a significant challenge,” said William C. McGinly, president and CEO of the association. “Hospitals have cut back on spending, mainly at the expense of necessary capital improvements.”

The association cited a December survey of its members, finding that 85 percent said their philanthropy programs were negatively affected by the economy last year, forcing almost half to downgrade giving projections for the year.

The survey also found that 27 percent of hospital programs used more of the money raised in 2009 to meet increased demands for charity care.

Read the Association for Healthcare Philanthropy’s release on fundraising.

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