How to Invest in a Not-For-Profit Hospital

Some hospitals act as non-profit entitiies, meaning donations and grants are essential for their financial survial.

A non-profit hospital is a chartered hospital that is not run by a corporation. Often, these hospitals provide free care to patients that do not have health insurance. Because of their nature, non-profit hospitals rely heavily on investments and grants from private donors and the government. This has become such a problem that many non-profit hospitals are beginning to merge with for-profit ones to stay afloat. As an investor, the rewards from investing in a non-profit hospital are many. The investment helps the broader community and may help your community and business image.

Instructions

1. Participate in fundraisers for the hospital. Fundraisers are one of the most popular ways a non-profit hospital raises revenues according to the Association for Healthcare Philanthropy. If you give a large amount at a fundraiser, your share and influence with that non-profit will be seen by the entire health care community.

2. Make annual donations to the hospital. Hospitals appreciate annual donations and will often revere the donation you gave. The most popular example is having a wing of the hospital named after you.

3. Hold benefits for the hospital. Like a fundraiser, you can hold these benefits independent of the hospital's input. The money raised during the benefit is then given to the hospital in one large sum.

4. Donate equipment and medical supplies. Directly giving the hospitals the medical equipment and supplies needed will help establish you as a key investor to the hospital.

5. Establish a gift annuity system. Many non-profit hospitals institute such systems so there is a larger incentive for investors. A gift annuity establishes consistent donations from you as the investor as long as the donations are written as tax deductions or you are given a certain percentage of profits and general funds.

Tips & Warnings

• Because they are not incorporated, typical ways of investment, such as stock, are not possible with non-profit hospitals. Almost all large donations to a non-profit hospital are given recognition by the hospital.

References

• Becker's Hospital Review: Acquisitions of Non-Profit Hospitals by For-Profits on the Rise, Drawing Concern
• Mercy Hospital: Invest in Mercy's Future
• Annuity: Charitable Annuity (Gift Annuity)
• Health Finance News: AHP: Organizations willing to invest in philanthropy will best survive