Hospitals and health systems are using standalone foundations more because they increase trustee involvement opportunities, maintain focus, improve marketing and manage endowment funds, among other reasons, according to the report.
Roughly 70 percent of the hospitals Wilmington Trust reviewed had separate foundations for fundraising, and a majority of these foundations were managed as long-term endowment structures. The authors of the report gave four steps for hospital executives to consider if they decided to create a standalone philanthropic foundation:
1. Review the costs/benefits of starting a separate standalone foundation. Do a competitive analysis to see which hospitals use standalone foundations.
2. Work with a team of legal, development and investment advisory experts who can help you map out a game plan on how to formally start a foundation.
3. Review any governance requirements.
4. Partner with an investment advisory firm that has experience working with healthcare endowments and foundations that can assist with the investment policy statement and provide a full-service, value-added approach.
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